Business Tax Deduction Checklist for 2025

‍

Your Guide to Business Tax Deductions in Australia for 2025

‍

Introduction

Australian small business owners face strict tax rules. Knowing which expenses are tax-deductible protects your business and supports growth. This guide answers the most common questions about business tax deductions for 2025. All content is based on current ATO rules, practical experience, and the most-searched questions from business owners like you.

‍

What Business Expenses Are Tax Deductible in Australia?

‍

Business tax deductions reduce your taxable income. The Australian Taxation Office (ATO) allows you to claim most expenses directly related to earning your income.

‍

ATO’s three golden rules:

• The expense must be for your business, not private use
• If the expense is for both business and private use, only claim the business part
• You must have records to prove the expense

‍

Common deductible business expenses:

• Motor vehicle expenses (for business travel)
• Home Office running costs
• Rent or lease payments for premises
• Salaries and wages
• Superannuation contributions
• Advertising and marketing
• Professional fees (accounting, legal)
• Insurance (public liability, professional indemnity, business property)
• Repairs and maintenance
• Depreciation of equipment
• Phone and internet expenses
• Interest on business loans
• Utilities (electricity, water, gas)
• Subscriptions and memberships

Do not claim expenses that are private or not related to business, such as home groceries or personal holidays.

‍

The $20,000 Instant Asset Write-Off Explained

The instant asset write-off lets eligible businesses claim an immediate deduction for the business portion of assets costing less than the threshold.

How does the 100% instant asset write-off work?

• You can claim the full cost of assets up to $20,000 in the year you buy them and use them, rather than depreciating over several years.

Who qualifies?

• Small businesses with aggregated turnover less than $10 million.

What assets are included?

• Equipment, vehicles, tools, computers, office furniture, and more.

Common questions:

• Will the instant asset write-off be extended to 2025?
  This write-off is scheduled to continue into 2025 for eligible businesses. Always check for the latest federal budget updates.
• What is the instant asset write-off threshold for 2026?
  The government may review the thresholds yearly. Always check for ATO updates.
• Does the $20,000 instant asset write-off include GST?
  If your business is registered for GST, the threshold is exclusive of GST. If not registered, it is inclusive.
• How does the instant asset write-off work in 2025?
  If you buy an eligible asset and it is used or installed by 30 June 2025, you can claim the deduction in your 2024-25 tax return.

‍

What Expenses Can I Deduct from My Business?

‍

What can be deducted as a business expense?

• Direct costs of running your business
• Motor vehicle costs for business trips
• Tools, machinery, and office equipment
• Rent, utilities, and business insurance
• Wages, superannuation and staff training

‍

What expenses can I claim through my business?

• Work-related travel (not commuting to and from home)
• Repairs and maintenance of business assets
• Marketing costs and website fees
• Bank fees for business accounts
• Professional development and training courses

‍

What is the most overlooked tax break?

• Prepaid expenses (if your turnover is under $50 million)
• Small business pool for depreciating assets
• Bad debts that are written off

‍

What deductions can I claim without receipts?

• If you cannot provide a receipt, you may still claim up to $300 for work-related expenses (for employees). For business use, you must keep records for all deductions. Use bank statements or digital invoices as backup.

‍

What are the write-offs for small businesses in 2025?

• Eligible businesses can instantly write off assets under $20,000 until 30 June 2025. Assets over this amount are depreciated.

‍

Best Tax Write-Offs for Small Business

Maximum write-off for business expenses

• The $20,000 instant asset write-off is the main option for 2025. Multiple assets can be claimed, but each must cost less than $20,000.

‍

What tax claims can I claim on tax for my small business?

• Any expenses that directly relate to running your business and meet ATO rules.

‍

What can't be written off as a business expense?

• Fines and penalties
• Private or domestic expenses
• Entertainment costs (unless for staff and subject to FBT rules)
• GST credits if you are entitled to claim them separately
• Expenses you have already claimed elsewhere

‍

Common mistakes to avoid

• Over-claiming home office or car expenses
• Claiming private expenses as business
• Missing out on depreciation or prepayments

‍

FAQ: Business Tax Deductions in Australia

What are the three golden rules of ATO?

• Business purpose, apportionment, and record-keeping.

What is an asset write-off in income tax?

• Immediate deduction of the full cost of eligible business assets.

Does the $20,000 instant asset write-off include GST?

• Exclusive for GST-registered businesses, inclusive for others.

How does the instant asset write-off work in 2025?

• Buy and use/install the asset by 30 June 2025, claim deduction in your 2024-25 tax return.

What deductions can I claim without receipts?

• Up to $300 for work-related expenses, but businesses should keep as much supporting evidence as possible.

What is the most overlooked tax break?

• Prepaid expenses and write-offs of bad debts.

What are the write-offs for small businesses in 2025?

• The instant asset write-off for eligible businesses is $20,000 per asset.

‍

How Trinity Accounting Practice Can Help

Trinity Accounting Practice provides up-to-date advice on all allowable deductions. We will support you to:

• Identify all legitimate business expenses
• Maximise your instant asset write-off
• Avoid common mistakes and audits
• Keep accurate digital records
• Meet all ATO rules for 2025

‍

We work with:

• Small businesses
• Tradies and construction
• Childcare and medical businesses
• Rental property owners
• NDIS providers

‍

Book your appointment or free consultation:

👉 Trinity Accounting Practice
✅ Accounting Firm in Beverly Hills
☎️ 02 9543 6804
📍 159 Stoney Creek Road Beverly Hills NSW 2209
🌐 www.trinitygroup.com.au
📅 Weekend & after-hours appointments available!
📅 Booking Link: https://calendly.com/ramy-hanna

‍

Business Tax Deduction Checklist for 2025

• Motor vehicle expenses (logbook, fuel, repairs)
• Tools and equipment (under $20,000 instant write-off)
• Office rent or home office (if eligible)
• Staff wages and superannuation
• Advertising and marketing
• Business Insurance
• Bank fees and loan interest
• Repairs and maintenance
• Internet and phone bills
• Training, seminars, memberships

Keep digital receipts and records for all expenses.

Summary

Staying on top of business tax deductions protects your profits. Know the ATO’s rules, keep solid records, and claim all allowable deductions. If you want personal guidance, Trinity Accounting Practice is here to help your business stay compliant and save at tax time.

‍

🌐 Our Virtual CFO division, VCFO Australia, provides strategic financial management, budgeting,forecasting, and compliance support for growing businesses andnot-for-profits: https://www.vcfoaus.au/

📌 Learn more about whatwe offer:
https://www.trinitygroup.com.au/services

📌 Discover the industries we specialise in:
https://www.trinitygroup.com.au/niches

📌 Read more tax and accounting tips on our blog:
https://www.trinitygroup.com.au/explore-learn

📌 Our mortgage brokeage division, Nexus Wealth Partners Pty Ltd clients with home loans, refinancing and business finance
https://nexuswealth.au/

‍

‍