Sole Trader - What deductions can I claim?
Small Business Entities (SBE) can generally claim everything they spend on the business, except expenses which of a private or capital nature
If sales under $75,000 / not registered for GST you can use our free excel cashbook - click here
Expenses which are of a private nature include:
-mobile phone (include expenses which are both business & private - we will remove the private component when we prepare your tax return)
-meals, snacks etc
-business meetings
-alcohol unless client gift
-clothing unless protective
Capital Items
-tools over the limit
pre 30/06/2023 there is no limit for SBE's
post 30/06/2023 the instant asset write-off limit is $20,000
There are some business expenses but they cannot be claimed:
-ALL fines
If you have employees you can claim for staff amenities but take care as many items attract fringe benefits tax
Also check out the ATO https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/