This tax time, to work out what business expenses you can claim, apply these three golden rules:

  • The money must have been spent for your business – not a private expense.
  • If it's a mix of business and private use, only claim the portion related to your business.
  • You must have a record to prove your expense.

    A mix of business and private use

    Some common expenses that can be both business and private include:

    • Motor vehicle expenses; for example if you use your car for your family and business
    • Travel expenses; for example if you combine a holiday with a business trip
    • Home-based business expenses such as rent or mortgage interest, if your home is also your place of business.

    Keep good records to show how you've worked out the business use of an expense. For example, you can:

    • Use a vehicle logbook
    • Keep a travel diary
    • Keep a floor plan to show the percentage of your home’s floor space that you use as your place of business.

    Click here to read more from the ATO.

    Please contact Ashley Brown if you want to discuss this change in more detail on 0402 025 046.