Small Business Tax Deductions You're Probably Missing on Your Return
Mon, 20 Jul 2026Let’s be honest for a second. Most of us start a business because we’re good at what we do, not because we have a burning passion for paperwork and tax law. When tax season rolls around, it is easy to get tunnel vision and only look at the massive expenses like rent or staff wages.
But if you haven't sat down with tax accountants in Perth yet, you might be leaving money on the table when you file your small business tax return. Missing out on these little wins just means you're paying a "lazy tax" that your business can't afford.
This guide is all about those sneaky, overlooked expenses that can actually make a dent in your tax bill if you know where to look.
Home Office Expenses That Often Get Overlooked
If you’re running your empire from a spare room in Scarborough or a desk in your living room in Subiaco, you’re sitting on a goldmine of deductions. A lot of people think they can only claim a tiny bit of electricity, but it goes way beyond that.
First up, the home office running costs. Since the ATO changed the rules recently, you’ve got the choice between the fixed rate (which is 67 cents per hour) or the actual cost method. The fixed rate is usually a winner for most because it covers your phone, internet, and power in one go. You just need a solid record of your hours.
Don't forget the gear either. If you bought a new ergonomic chair because your back was killing you, or a second monitor to make those spreadsheets less painful, you can claim the depreciation on those. Even your internet and phone expenses count if you're using them to take client calls or upload files. Just make sure you’ve got a way to show what part is for work and what part is for watching Netflix.
Vehicle and Travel Expenses Beyond Fuel
Most people remember to track their petrol, but they forget the other costs that come with being on the road. If you're driving to meet a client in Fremantle or heading to a site in Joondalup, your business mileage is just the start.
You should be keeping track of every parking fee and toll you pay while on the clock. Those five-dollar parking tickets add up over a year. If you have to travel interstate or even just up the coast for a conference, your accommodation is a clear deduction.
What about meals? If you’re away from home overnight for business, you can generally claim your food. Even public transport counts. If you take the train into the CBD for a meeting to avoid the nightmare of city parking, that fare is a legitimate business expense. Keep those Transperth records handy.
Professional Services and Business Fees You Can Claim
This is one of those areas where you spend money to save money. Fees you pay for bookkeeping, accounting, or legal advice are generally tax deductible. Working with a professional to prepare your small business tax return can also help you identify deductions you may have otherwise missed. Even better, the fees you pay for these services can usually be claimed on your next tax return, helping reduce your overall tax bill.
Business insurance is another big one. Whether it’s public liability, professional indemnity, or even insurance for your tools, it’s all on the list. You should also look at your bank statements for any account-keeping fees or payment processing charges (like those annoying fees from Stripe or Square).
Even your business licence and registration fees are fair game. If you have to pay a fee to a local council or a professional body to keep your doors open, make sure it’s recorded.
Technology and Software Costs
In today’s world, almost every business is a tech business to some degree. All those monthly software subscriptions like Xero, Microsoft 365, or Canva are deductible. It’s easy to forget them because they just quietly come out of your account every month, but they are essential for your operations.
Cloud storage is another one people often miss. If you're paying for extra space on Google Drive or Dropbox to keep your business files safe, that’s a business cost. Don't forget your website hosting and domain renewals either.
If you’ve invested in security software to keep your customer data safe from hackers, that’s also a deduction. Any online tool that helps you get the job done more efficiently should be in your records.
Marketing and Advertising Expenses
Getting the word out about what you do isn't cheap, and the ATO knows that. Any money you pour into digital advertising (like those Google Ads or boosted Facebook posts) is a direct deduction. It doesn't matter if the campaign was a massive success or a bit of a flop, the cost of running it is still a business expense.
Social media promotions and website updates also fall into this bucket. If you paid a developer to freshen up your landing page or a graphic designer to make your Instagram look less like a hobby and more like a brand, keep those invoices. Even the small stuff like business cards or those flyers you left at the local coffee shop count. If you use an email marketing service to send out newsletters to your database, that monthly fee is another one to add to the list.
Employee and Contractor Related Expenses
If you have a team helping you run the show, there are plenty of deductions to keep track of beyond just their base salary. Staff training is a big one. If you paid for your team to do a workshop or get a new certification, that's usually deductible.
Uniforms and protective clothing are also on the table. If your staff need high-vis gear or branded shirts to do their job, the cost of buying and even cleaning them can be claimed.
One thing you really need to watch is superannuation. For it to be deductible in this financial year, the money has to actually be in the employee’s fund by June 30. If you’ve got contractors helping you out, their payments are deductible too (just make sure you've got their ABN on file).
Even the "little" things like the coffee, tea, and milk you provide in the staff kitchen are legitimate employee amenities that you can claim.
Wrapping it all up
At the end of the day, every dollar you find in overlooked deductions is a dollar that stays in your business. It might seem like a lot of effort to track down a ten-dollar parking receipt or a monthly software fee, but when you add them all up, the difference to your bottom line is massive.
If you’re ever unsure about whether something is a "real" deduction, just keep the receipt and check with a professional tax accountant in Perth, Australia.
At WMK Accounting, we help business owners identify every eligible deduction while making sure their tax returns remain accurate and compliant. As experienced small business tax return accountants in Perth, we take the time to understand your business, review your expenses carefully, and help you maximise your tax savings without unnecessary stress.
If you want confidence that you're claiming everything you're entitled to, our team is here to help.