EOFY is not the time to panic-buy things just to “save tax”. The real opportunity is simpler: make sure you’re claiming what you are genuinely entitled to, with clean records to back it up.
Below are some EOFY deductions small businesses commonly miss. Every business is different, so treat this as a prompt list. If you’re unsure, get advice from an experienced tax accountant before you lodge.
Start with the rule that keeps you safe
In general, you can claim a deduction for most business expenses if they are directly related to earning your assessable income. The ATO’s overview is a good starting point.
The catch is documentation. If you cannot substantiate the expense, you may not be able to claim it.
1. Subscriptions and software that quietly add up
Many businesses forget to claim software because it feels like “just a small monthly fee”. Over 12 months, those tools add up quickly. Think scheduling tools, design software, job management, cloud storage, phone apps, and industry-specific platforms.
For example, common tax deductions for content creators can include subscriptions and software for editing tools like Adobe Creative Cloud and Canva and tools like Google Drive or Dropbox.
2. Home-based business expenses
If you operate some of your business from home, you may be entitled to claim the business portion of certain expenses. The ATO has specific guidance on home-based business deductions and what can apply.
Common deductions can include:
- Running expenses such as electricity, internet, phone, furniture, and cleaning costs
- Occupancy expenses such as mortgage interest or rent, council rates, or home insurance premiums
- If you travel between locations, you may be eligible to claim the cost of vehicle trips between your home and other work locations
3. Motor vehicle expenses done properly
Vehicle claims are often missed or under-claimed because people do not track them well. If you use a vehicle for business, make sure you understand what method applies to your situation and what records you need. The ATO’s motor vehicle deductions guide is worth reviewing.
Motor vehicle expenses that you can claim include:
- fuel and oil
- repairs and servicing
- interest on a motor vehicle loan
- lease payments
- insurance cover premiums
- registration
- depreciation (decline in value)
4. Bank fees, merchant fees, and transaction costs
These are easy to overlook because they are sprinkled throughout the year. Bank account fees, EFTPOS terminal fees, Stripe and PayPal fees, interest on business loans, and finance charges can often be deductible where they relate to running the business.
5. Training, memberships, and professional development
If training is linked to the business and supports your ability to earn income, it may be deductible. The same goes for industry memberships, licences, and renewals. The key is that it must be relevant and supported by records.
6. Accounting and bookkeeping fees
Your accountant, bookkeeper, BAS agent, payroll setup, and software support are often deductible. Many businesses miss these because invoices arrive at awkward times or are paid by direct debit.
7. Repairs and maintenance vs improvements
This is a common area of confusion. Some costs may be repairs and maintenance, while others may be improvements or capital items that are treated differently. If you are unsure, this is where advice matters because misclassification can cause issues later.
Your EOFY deductions only work if your records do
If you want a smoother EOFY, your biggest win is record-keeping. The ATO is clear that you need records to substantiate deductions.
If you’re missing receipts, mixing personal and business transactions, or coding expenses inconsistently, it usually costs you in one of two ways. You either miss deductions or you pay your accountant extra time to clean it up.
If you want clarity before you lodge, Schofields Accountants can help you identify missed deductions and tighten your records so EOFY is straightforward.
