Reducing errors when claiming business expenses

The ATO has identified some common errors when it comes to claiming business expenses in your tax return.

You should know that:

If you use your motor vehicle entirely for your business, you can claim a deduction for the whole amount. If you use it for a mix of business and private use, you need to apportion the expense and only claim the business portion. The same for claiming GST.

You must keep business expenses separate from private expenses such as private rent, fines, travel, food and renovations of a private residence.

Your business expenses must be claimed at the GST exclusive rate if you are registered for GST, not the GST inclusive rate.

If you operate as a company or trust, paying private expenses from these accounts may have other tax implications such as fringe benefits tax and shareholder loans.

So get it right by satisfying the following three golden rules:
The expense must have been for your business, not for private use

If the expense is for a mix of business and private use, you can only claim the portion that is used for your business

You must have records to prove it.