Tax Accountant Perth | Best Tax Accountant in Perth | Tax Return PerthTax Accountant Perth | Best Tax Accountant in Perth | Tax Return Perth
Running a small business in Australia has never been more demanding. Rising operating costs, tighter cash flow, and increased compliance requirements mean every dollar matters. One of the most effective ways to reduce your tax bill legally is by understanding what you can claim as a tax deduction and how to do it correctly.
This 2026 update breaks down the most valuable tax deductions available to Australian small businesses, explains common mistakes to avoid, and highlights how professional guidance can help you stay compliant with the ATO while maximising savings.
Whether you’re a sole trader, partnership, company, or trust, this guide will help you plan smarter and pay only what you owe.
A tax deduction is an expense your business incurs while earning assessable income. These expenses reduce your taxable income, meaning you pay less tax overall.
To be deductible under Australian tax law:
If an expense is partly business and partly personal, only the business portion can be claimed.
Everyday operating expenses form the backbone of most business deductions.
Common deductible expenses include:
For home-based businesses, you may also claim a portion of household expenses such as electricity and internet, based on actual business use.
If you employ staff, many payroll-related expenses are deductible, including:
Businesses using STP-enabled payroll systems often rely on a BAS accountant to ensure reporting is accurate and compliant with ATO requirements.
Vehicle expenses are commonly claimed and frequently audited.
You may be eligible to claim:
You can claim vehicle expenses using:
Keeping detailed records is critical. Incorrect claims are a red flag for audits.
Assets such as equipment, furniture, and technology used in your business can be depreciated over time.
Examples include:
Depending on current thresholds, eligible assets may be:
Asset depreciation planning is best handled with a business tax accountant to ensure compliance and optimal tax timing.
Fees paid for professional services are fully deductible when related to business operations, including:
Understanding the cost to hire a tax accountant can help business owners budget effectively while ensuring deductions are maximised and errors avoided.
Marketing expenses are 100% deductible if incurred for business promotion.
This includes:
With online competition increasing, marketing deductions play a vital role in business growth strategies.
Insurance policies related to your business are deductible, such as:
Personal insurance policies remain non-deductible.
Cloud-based tools are now essential for Australian businesses.
Deductible software expenses include:
If you’re unsure how these relate to your reporting obligations, learning what is BAS and how to lodge can clarify which expenses belong in each reporting cycle.
If you operate your business from home, you may claim:
Accurate calculation methods and evidence are essential to avoid overclaiming.
Expenses for improving business-related skills are deductible, including:
The training must relate directly to your current business activities.
You may claim deductions for:
Loan repayments must be split between principal and interest, as only the interest portion is deductible.
Selling business assets, property, or shares may trigger CGT. However, small businesses can access concessions that significantly reduce tax.
Proper planning around asset disposal and structure can show you how to save on capital gains tax legally while remaining compliant with ATO regulations.
Many small businesses overpay tax due to simple errors:
Working with a small business accountant Perth ensures deductions are accurate, substantiated, and optimised.
The ATO requires businesses to keep records for at least five years, including:
Digital record-keeping systems are strongly recommended and help simplify audits.
Tax law changes frequently, and deductions that were allowed previously may no longer apply. A qualified tax accountant Perth businesses trust can:
Claiming the right tax deductions isn’t about cutting corners it’s about understanding your entitlements under Australian tax law. With rising costs and increased scrutiny from the ATO, proactive tax planning is essential for small business success in 2026.
By keeping accurate records, understanding deductible expenses, and seeking expert guidance when needed, you can reduce your tax burden while focusing on what matters most growing your business.
