Running a business is hard work. You shouldn’t have to pay a cent more in tax than you legally owe.

While we all know about rent and wages, there are often valuable deductions that busy business owners overlook. At FinWiz Solutions, we want to make sure you are claiming everything you are entitled to.

Here are the top tax deductions you need to know for the 2024-2025 financial year.

1. The $20,000 Instant Asset Write-Off

The news you’ve been waiting for: It’s back.

The government has extended the $20,000 Instant Asset Write-Off until 30 June 2025.

What this means for you: If your business has a turnover of less than $10 million, you can immediately deduct the full cost of eligible assets costing less than $20,000. You don’t have to depreciate them over several years—you get the tax break straight away.

This applies to assets like:

• Office furniture and computers.
• Tools and equipment.
• Coffee machines for the staff kitchen.
• Air conditioners.

Key Rule: The asset must be first used or installed ready for use between 1 July 2024 and 30 June 2025.

2. Motor Vehicle Expenses (Rate Increase!)

If you use your car for business, you can claim a deduction for the running costs. For the 2024-2025 financial year, the ATO has increased the “cents per kilometre” rate.

• New Rate: 88 cents per kilometre.

You can claim up to 5,000 business kilometres per vehicle using this method without needing written evidence of all your expenses (though you do need to show how you calculated your business kms, like a diary record).

Pro Tip: If you drive significantly more than 5,000km, the Logbook Method might get you a bigger refund. This requires keeping a valid logbook for 12 continuous weeks, but it allows you to claim the business percentage of all actual costs (fuel, insurance, registration, and depreciation).

3. Home Office Expenses

Working from home? The rules have tightened recently, but the deductions are still valuable. For 2024-2025, the ATO’s Fixed Rate Method is 70 cents per hour.

This 70-cent rate covers:

• Energy expenses (electricity and gas).
• Phone usage (mobile and home).
• Internet.
• Stationery and computer consumables.

What isn’t covered? You can claim the decline in value (depreciation) of assets like computers, office chairs, and desks separately on top of the 70 cents per hour rate. Don’t forget this extra step!

4. Superannuation Contributions

You can claim a tax deduction for the superannuation payments you make for your employees—and for yourself if you are self-employed.

The Golden Rule: To claim the deduction in this financial year, the money must hit the super fund’s bank account before 30 June. If you pay on June 30 and it doesn’t clear until July 1, you lose the deduction for this year. We recommend paying at least a week early to be safe.

5. Professional Education

Investing in your skills? If you take a course, attend a seminar, or subscribe to a professional journal that is directly related to your current business, it is 100% tax deductible.

• Deductible: A management course for a business owner.
• Not Deductible: A course to help you open a new, unrelated business.

6. Bad Debts

If a client hasn’t paid you and you’ve done everything reasonable to chase the money, you may be able to write it off as a “bad debt” deduction.

Critical Step: The debt must be physically written off in your accounts before the end of the financial year. You can’t just “decide” it’s bad after June 30; it needs to be recorded in your books.

7. Pre-Paid Expenses

Small businesses have a unique advantage here. If you pay for an expense upfront (like insurance, rent, or subscriptions) that covers a period of 12 months or less, you can claim the entire deduction in the current financial year. You don’t have to wait to claim it month-by-month.

Don’t Miss Out

Tax laws change every year, and missing a deduction is like throwing money away.

At FinWiz Solutions, we stay on top of these changes so you don’t have to. We’ll review your books to ensure you’re capturing every legitimate expense, keeping more cash in your business where it belongs.

Ready to maximize your tax return? Contact the friendly team at FinWiz today.