logo
P. 07 5495 1347
F. 07 5498 3396
E.

Reducing errors when claiming business expenses

The ATO has identified particular areas relating to business expenses that are commonly entered incorrectly in tax returns. Owners should take the time to carefully review tax returns to ensure all information is correct.

Individuals who use a motor vehicle entirely for their business can claim a deduction for the whole amount. However, if they use the vehicle for a mix of business and private use, they will need to divide the expense amount and only claim the business portion.

Business expenses must be kept separate from an individual’s private expenses, such as personal rent, fines, travel, food and renovations of a private residence. Those who operate their small business as a company or trust need to be aware that paying private expenses from these accounts may have other tax implications such as fringe benefits tax and shareholder loans.

In the event a business is upgrading its accounting software, remember to check that business and private expense codes are correct. The business expenses must be claimed at the GST exclusive rate if they are registered for GST, not the GST inclusive rate.

Small businesses should note that falsely or incorrectly claiming expenses is not something the ATO takes lightly. Penalties can apply based on the extent of the misinformation.

our Services

Accounting
services

In the constantly changing business environment, you can rely on our business services team to be expert, up-to-date and ready at hand to assist you with your business matters. Whether your concerns are taxation, accounting, business planning, cashflow and budgeting, or business valuation, rest assured that our staff are available to advise you.

audit
services

There is no such thing as a ‘one size fits all’ audit. We use the latest technology to provide individual assessments, producing comprehensive reports in which your stakeholders can have the utmost confidence. We are also happy to offer due diligence systems reviews and financial consulting advice.

company
secretarial

Communication and effective administration are essential elements of a successful organisation. Regardless of the size of your business, we are ready to support you with a team of highly qualified secretarial and support staff.

taxation
services

We regularly deal with a broad range of personal and corporate taxation issues and make a point of understanding the individual needs of every client. Whether you need advice on company tax, personal tax effectiveness or indirect taxation including payroll tax and GST, our team will identify the best solutions for you.

self managed
super funds

The way your superannuation is managed now will have a significant impact on the choices you have in retirement. Self-managed super funds are perfect for those looking for greater control of their savings and are one of the best ways to ensure that you will have sufficient funds for retirement.

specialist
services

In addition to our normal services, we have developed specialist knowledge and expertise in the following sectors:

Christian organisations

Audit of incorporated associations.