Being a small business owner means being a person who tries to make a success with as little resources as possible. Therefore, every single dollar counts, yet, while so many small businesses struggle to maintain positive cash flow and get in debt to cover operational expenses, they also leave so many tax deductions and returns unclaimed. In order to avoid making this grievous mistake, here are the top five tax-saving tips that you should use as soon as possible.

Home office

More and more Australian businesses nowadays have between 3 and 19 employees. The number of one-man enterprises is also on a drastic rise. This all means that your enterprise is, most likely, the one that you’re running from home. In this scenario, you might be able to get a deduction of your utilities due to the fact that a part of them classifies as business expenses. For instance, if your home office takes 10   of your home, you might be able to deduct 10 per cent of your utility bill. Keep in mind that this doesn’t apply for dual-purpose rooms (office-bedroom, etc.).


The next thing you need to understand is the concept of depreciation. You see, every single asset that you own loses its value over time. Your corporate vehicles, the building that you own, computer hardware, equipment and even software (in a lot of scenarios). Therefore, it makes no sense to keep paying the same tax for an asset that keeps dropping in value. Therefore, you might want to hire tax depreciation surveyors in order to make an estimate of the exact money that you’re eligible for.

Car and truck expenses

The next thing you need to understand is the fact that your travelling expenses might be eligible for a form of a deduction. Not only, can you get a deduction based on your mileage but also other vehicle expenses like oil changes, maintenance, repairs, registration, insurance, parking fees, etc. Keep in mind that this is the more complex of the options, the one that requires you to keep all the receipts. Other than this, you could just go for a standard deduction and get a fixed deduction per mile. Whether or not this pays off is for you to decide.

Employee wages and benefits

One more thing you need to focus on are the employee benefits and wages. When it comes to benefits, when it comes to a health plan, sick pay, vacation pay, accident coverage, life insurance coverage and more, these are all expenses that you can deduct. A similar thing takes place when it comes to employee wages (for as long as they’re reasonable). Keep in mind that, based on the same principle, this also applies to employee rewards. Employee education is a perfect example of this.

Start-up costs

Finally, starting a business costs you quite a bit, which is definitely something that you can deduct. Here, you can deduct both business start-up costs and organizational costs, however, this is just the tip of the iceberg. The advertisement that’s involved in the early stages is also deductible. So are the research and experimental costs that were involved in preparing your business/product for the launch.

In conclusion

As you can see, provided that you’re struggling with cash, at the moment, chances are that you already have a small fortune in unclaimed deductibles that you’ve neglected so far. Therefore, instead of heading straight to the bank or a credit union, find a skilled tax accountant instead and ask for their advice on the topic. The majority of first-time entrepreneurs find this method to be far superior.