What business expenses can be claimed?
Learn the general ATO rules for claiming business expenses as tax deductions.
Summary
The ATO says businesses can generally claim deductions for expenses incurred in carrying on the business where the expense is directly related to earning assessable income.
What this means
Business expenses must be connected to business activity and supported by records. Private or domestic expenses generally cannot be claimed, and mixed-use expenses need to be apportioned.
Different deduction rules can apply to assets, vehicles, home-based business expenses, and other categories.
Typical actions
- Keep invoices and receipts.
- Separate business and private expenses.
- Apportion mixed-use expenses.
- Check special rules for assets, vehicles, and home-based expenses.
- Keep records showing how claims were calculated.
Official ATO sources
Last checked: 20 June 2026
Business deductions
Explains general business deduction rules.
Record keeping for business
Explains records needed to support business claims.
Income and deductions for business
ATO hub for business income and deductions.
Related questions
- What records does a business need to keep?
- What is business income?
- What is GST?
- What tax obligations does a small business have?
Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.
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