top of page

Maximising Your Tax Return: Tips for Australian Small Businesses

As the end of the financial year approaches, Australian small business owners are gearing up to maximise their tax returns. With the right strategies and a thorough understanding of tax laws, you can potentially save a significant amount of money. Here are some tips to help you maximise your tax return and ensure you’re not leaving any money on the table.

Tips for Australian Small Businesses
Maximising Your Tax Return

1. Understand Deductible Expenses

One of the most effective ways to maximise your tax return is by claiming all eligible business expenses. These can include:

  • Operating Expenses: Office supplies, utilities, and rent.

  • Employee Wages: Salaries, superannuation contributions, and employee benefits.

  • Business Travel: Costs related to business travel such as flights, accommodation, and meals.

  • Vehicle Expenses: If you use a vehicle for business purposes, you can claim a portion of the running costs.

  • Marketing Costs: Advertising, website maintenance, and promotional materials.

Keep detailed records and receipts for all business expenses throughout the year to ensure you can substantiate your claims.

2. Take Advantage of Instant Asset Write-Offs

The Australian Taxation Office (ATO) allows businesses to immediately deduct the business portion of most assets costing less than the threshold amount. This threshold can change, so it’s important to stay updated with the current limits. As of now, the instant asset write-off threshold is $150,000 for each asset purchased and used or installed ready for use by 30 June 2024.

3. Prepay Expenses

Consider prepaying some of your business expenses before the end of the financial year. Eligible pre-paid expenses can include rent, insurance, and professional subscriptions. This can help reduce your taxable income for the current year, resulting in a lower tax bill.

4. Review and Write Off Bad Debts

If you have outstanding invoices that are unlikely to be paid, you may be able to claim a deduction for bad debts. To write off a bad debt, you must have previously included the amount in your assessable income and written off the debt as uncollectable. Keep thorough documentation to support the write-off in case the ATO questions it.

5. Contribute to Superannuation

Making additional contributions to your superannuation fund can be a tax-effective way to reduce your taxable income. Both personal and employer contributions can be claimed as a tax deduction, subject to the contribution caps. Ensure that any contributions are made before 30 June to qualify for a deduction in the current financial year.

6. Use Depreciation Deductions

Depreciation allows you to claim a tax deduction for the decline in value of assets over time. There are different methods to calculate depreciation, such as the prime cost (straight-line) method or the diminishing value method. Choose the method that offers the greatest tax benefit for your situation.

7. Seek Professional Advice

Tax laws can be complex, and staying up-to-date with the latest changes and opportunities can be challenging. Engaging a professional accountant or tax advisor can help ensure you’re making the most of available deductions and complying with all regulations. They can provide personalised advice tailored to your business needs and help you navigate the tax return process smoothly.

8. Keep Accurate Records

Good record-keeping is crucial for maximising your tax return. Ensure you maintain accurate and up-to-date records of all income, expenses, and supporting documents. Use accounting software to track transactions and generate reports, making it easier to prepare your tax return and substantiate your claims.


Maximising your tax return requires careful planning and a thorough understanding of tax laws. By keeping detailed records, taking advantage of deductions, and seeking professional advice, you can optimise your tax return and potentially save a substantial amount of money. Remember, every dollar saved on your tax return is a dollar that can be reinvested into growing your business.

Stay proactive, stay informed, and you’ll be well on your way to a more profitable financial year.


bottom of page