Reducing your taxable income means keeping more profit in your business—but are you claiming all the deductions and offsets available to you? Here’s how business owners can legally minimise tax liability and improve cashflow.
💵 What Can Your Business Claim as a Tax Deduction?
A deduction reduces your business’s taxable income, lowering your overall tax bill. To qualify, expenses must be directly related to running your business. Some common deductions include:
✔️ Operating Expenses – Rent, utilities, business insurance, and software subscriptions.
✔️ Work-Related Equipment & Tools – Machinery, computers, office furniture, and industry-specific tools.
✔️ Vehicle & Travel Expenses – Fuel, maintenance, and leasing costs for business vehicles.
✔️ Employee Wages & Super Contributions – Including mandatory and additional voluntary contributions.
✔️ Marketing & Advertising Costs – Digital ads, website development, branding, and promotional materials.
✔️ Professional Services – Legal, accounting, and consulting fees that support your business operations.
✔️ Training & Development – Courses, certifications, and employee education relevant to your industry.
🔹 What Are Tax Offsets?
Unlike deductions, offsets directly reduce the tax you owe, making them even more valuable. Some key offsets for businesses include:
✔️ Small Business Income Tax Offset – If your business turnover is under the threshold, you may qualify for a reduction in tax payable.
✔️ Instant Asset Write-Off – Eligible businesses can immediately deduct the cost of assets up to a certain value.
✔️ Research & Development (R&D) Tax Incentives – Available for businesses investing in innovation and new technologies.
✔️ Fringe Benefits Tax (FBT) Exemptions – Certain benefits provided to employees may qualify for FBT exemptions.
💡 Are You Maximising Your Tax Savings?
Taking advantage of every available deduction and offset can help your business reduce tax, improve compliance, and boost profitability. Our team at Fluid Business Advisory can help you identify opportunities to legally minimise your tax bill while ensuring you meet all compliance requirements.
📢 Let’s chat today to optimise your tax strategy and keep more profits in your business!
