How to Maximise Your Tax Deductions as a Small Business

Don’t Leave Money on the Table This EOFY

As a small business owner, every dollar counts—and that includes the dollars you can legally deduct from your taxable income. Yet many businesses miss out on thousands each year simply because they’re unaware of what they can claim, or they don’t have the right systems in place to track expenses properly.

At Streamlined Accountants, we specialise in helping small businesses optimise their deductions, stay compliant with the ATO, and build smarter tax strategies that fuel long-term growth.

Here’s how you can make the most of your deductions this financial year.

1. Know What You Can (and Can’t) Deduct

Let’s start with the basics. You can generally claim any expense directly related to earning your business income, including:

✅ Operating costs (e.g. rent, utilities, internet)

✅ Tools, equipment, and software

✅ Vehicle and travel expenses (for business purposes)

✅ Marketing and advertising

✅ Employee wages and super

✅ Professional services (e.g. accountants, legal advisors)

🚫 But you can’t claim personal expenses, entertainment, or items not used for business (unless a clear business portion can be calculated).

Pro Tip: Mixed-use expenses (like your mobile phone or car) require careful calculation of business use vs. personal use. A logbook or usage diary helps substantiate these claims if the ATO comes knocking.

2. Track Every Dollar with the Right Tools

Poor record-keeping is one of the biggest reasons small businesses miss out on deductions. If you don’t have the receipts, you may not be able to claim the expense.

✅ Fix it:

Use apps like Dext, Hubdoc, or Xero’s in-built tools to photograph, upload, and categorise receipts in real time. Automate wherever possible to reduce admin and ensure nothing falls through the cracks.

3. Prepay Expenses Before June 30

If your cash flow allows, prepaying certain expenses can bring forward deductions into the current financial year.

You can generally prepay up to 12 months of:

• Rent or lease payments

• Insurance premiums

• Subscriptions (like software or memberships)

• Professional services

Real Case: One of our hospitality clients prepaid $10K in insurance and IT costs in June. That lowered their tax bill by over $2,500 for the year.

4. Depreciate Business Assets Strategically

Assets over $20,000 may need to be depreciated over several years—unless the instant asset write-off is available.

We’ll help you:

• Determine eligibility for temporary full expensing (if still active)

• Use low-value pooling strategies for minor equipment

• Split ownership via trusts or partnerships to optimise depreciation benefits

5. Claim Home Office Expenses (Correctly)

If you work from home—even part-time—you may be able to claim:

• Electricity and internet (proportional to business use)

• Office equipment depreciation

• Cleaning costs

• Rent (if you're running a business from a dedicated space)

You can use the ATO fixed rate or the actual cost method, depending on what gives the best outcome. We’ll guide you through both and help determine what’s most beneficial.

6. Don’t Forget Super Contributions

Paying super for employees before 30 June is tax-deductible—but only if it’s cleared by the fund before EOFY.

✅ Schedule early payments by mid-June to avoid missing out on the deduction.

Also, consider making personal super contributions (if eligible). You may be able to claim a deduction and boost your retirement savings at the same time.

7. Get Expert Advise on Business Structures

The right business structure isn’t just about compliance—it’s a tax planning tool. Whether you’re a sole trader, company, or trust, your ability to split income, claim certain deductions, or access tax offsets can vary.

We offer tailored structure reviews to ensure you’re not paying more tax than necessary—or exposing yourself to avoidable risk.

✅ Case Study: $18K in Missed Deductions Recovered

A new tradie client came to us as a sole trader. After reviewing his records:

• We identified missed deductions on vehicle usage, small tools, and training

• Set him up with Dext and Xero to track expenses moving forward

• Recommenced the correct super strategy to claim future deductions

Result: We amended his past return and recovered $18,000 in missed deductions—plus reduced his current tax bill by over 30%.

Ready to Maximise Your Deductions and Minimise Stress?

EOFY doesn’t have to be overwhelming. With the right strategy, you can claim everything you’re entitled to—without crossing any lines.

Let Streamlined Accountants help you unlock every deduction, ensure compliance, and build a tax-smart business that grows year after year.

📞 Call us today at 0451 040 656 or email info@streamlinedaccountants.com.au for a tailored tax review before June 30.

Let’s make tax time work for you—not against you.