Top Tax Tips for Small Businesses in Australia (2025)
Running a small business in Australia means navigating complex and ever-changing tax rules.
Here are actionable tips for owners to keep their obligations in check and avoid costly pitfalls:
Know Your Obligations: Most small businesses must manage income tax, GST, and PAYG withholding or instalments. Business structure (sole trader, company, trust) affects how you’re taxed
Claim Deductions Properly: Deduct business expenses like rent, utilities, staff wages, insurance, and business travel. Always keep documentation for substantiation
Instant Asset Write-Off: Until 30 June 2025, assets costing less than $20,000 can be written off instantly, with no total cap
Small Business Offset: Unincorporated entities may receive up to $1,000 annual offset automatically when lodging a return
Stay Up-to-Date with Concessions: Prepaid expenses, start-up costs, and bad debts have special deduction rules. Review each at year-end
Record Keeping: Accurate financial records are crucial—ATO attention is high around overclaimed costs and missing records
