Small Business Tax Concessions
Business Advice

Small Business Tax Concessions And How To Claim Them

Australian tax laws can appear extremely complicated. However, they actually aren’t. Sure, there are a lot of them, but once you find the ones which apply to you and your business, you shouldn’t have any trouble following them. If you are struggling with your tax, then consider seeking advice about the following concessions from your accountants.

Although most Australian businesses don’t do anything wrong on their tax return, according to accountants, in the government’s eyes at least – it is common to forget about or ignore tax concessions that they otherwise could have claimed. If you undertake any of the following activities, or if the following apply to your business, you may be able to claim more tax back at the end of the year:

Travel expenses

If you or your employees travel for work, you may be able to claim the cost of your travel, your accommodation costs and the cost of your meals on your tax return. Note that you can only claim costs like these if the trip is solely for business, and that you can’t claim everyday transport to and from work.

Sportsperson, entertainers and special professionals concessions

If you fall into the above category, and you earn a variable income, then you may be eligible for income averaging. This allows you to pay less tax in years where you earn a higher than usual income. People like artists, composers, inventors, authors or athletes can be eligible for this sort of concession.

Foreign income offsets

If you have a foreign income which has already been taxed in the country that you earned it in, you may be eligible for a foreign income tax offset. In this case, you won’t pay tax twice on any income that comes from overseas sources.

Small business income tax offset

If you run a small Australian business which has a small financial turnover, you may be eligible for a small business income tax offset. If you are eligible, then the amount of tax that you pay will be reduced by a certain percentage, depending on your exact situation.

Costs associated with running your business from home

If you run a small business from your home, you may be able to claim some of your everyday costs as tax deductions. Exactly what you can claim will depend on your circumstances, but you may be able to claim some or all of your:

  • Rent
  • Electricity bills
  • Internet cost
  • Mobile phone bills

If you think that you may be eligible for this, you should consider speaking to your accountant.

Final Word

As a small business owner, there is a lot of potential to reduce your taxable income by claiming concessions and tax deductions. It is often worth paying for the services of a professional tax agent, as they will be able to help you make sure that you claim everything that you can.