The following Table provides details of business expenses for which deduction may be made from the gross income of a self-employed person. The deductible expenses must be essential to the primary purpose or type of the business.
Note: that some expenses may not be treated in the same manner by the Australian Taxation Office.
| Business expense | Deductible? Yes or No |
|---|---|
| Accountancy fees | No |
| Advertising | Yes |
| Amenities and refreshments for staff | No |
| Bank or money transfer fees, bank surcharges or dishonour fees, account service fees | No |
| Bookkeeping fees | No |
| Broadband, internet and Wi-Fi support and access fees | No |
| Company Registration and Return costs | No |
| Computer consumables | No |
| Courier costs | Yes |
| Course costs, professional development, and staff training | No |
| Debts of the business, including liability for bad debts or losses carried forward from previous financial periods | No |
| Depreciation | Yes |
| Domestic expenses | No |
| Donations | No |
| Drawings or Distributions | No |
| Dry cleaning or laundry | No |
| Electricity (domestic) | No |
| Electricity (non-domestic) | Yes |
| Entertainment costs | No |
| Equipment and lease of equipment | Yes |
| Expenses paid forward | No |
| Fees - filing fees such as court, application or document lodgement fees | No |
| Fees - membership of professional associations, financial or business advice | No |
| Fees - parking, tolls, vehicle storage | No |
| Fees - Web content manager | No |
| Fines - parking, speeding or other (e.g. food handing fines) | No |
| Freight | Yes |
| Gas (domestic) | No |
| Gas (non-domestic) | Yes |
| Gifts or donations | No |
| Goods to be sold | Yes |
| GST on goods purchased to be on-sold | No |
| Insurance premiums and fees essential to the primary purpose of the business (Exceptions to this rule are noted below.) | Yes |
| Insurance premiums - Public Liability Insurance | Yes |
| Insurance premiums and fees - Life, Workers Compensation, Home and Contents, or Income Protection | No |
| Interest component of a loan repayment where the loan was made for the primary purpose of the business | Yes |
| Legal fees | No |
| Licenses essential to the primary purpose of the business | Yes |
| Licenses not essential to the primary purpose of the business | No |
| Materials | Yes |
| Medicare levies | No |
| Motor vehicle expenses essential to the primary purpose of the business | Yes |
| Motor vehicle expenses not essential to the primary purpose of the business | No |
| NRMA or other roadside service fees | No |
| Office or business premises cleaning costs, cleaning products | No |
| Office maintenance and refurbishment | No |
| Payroll tax and expenses such as payroll preparation fees | No |
| Personal expenses | No |
| Postage | Yes |
| Printing | Yes |
| Principle component of loan repayment | No |
| Protective clothing and uniforms | No |
| Public risk insurance (Premiums) | Yes |
| Purchase of capital items, small plant equipment, including mobile phones, laptops, notepads or other electronic devices | No |
| Rent for commercial premises or a virtual trading space i.e. an electronic retail outlet - related to the primary purpose of the business | Yes |
| Rent for residential premises | No |
| Research costs | No |
| Salary for the business owner/s | No |
| Salary for employees | Yes |
| Security installations or costs | No |
| Signage | No |
| Stamp Duty | No |
| Stationery | Yes |
| Storage fees for goods to be sold | No |
| Superannuation contributions for the self-employed person/s | No |
| Superannuation levy for employees | Yes |
| Taxation levies | No |
| Telephone (domestic) | No |
| Telephone (non-domestic) | Yes |
| Tools | Yes |
| Training and professional development courses for the self-employed person/s | No |
| Travel essential to the primary purpose of the business | Yes |
| Subscriptions | Yes |
| Wages for employees | Yes |
| Wages for the business owner/s | No |
| Water usage - domestic or non-domestic | No |
| Web site development costs | No |