A 12-month plan designed for new business owners who may want some extra guidance around business structure, accounting software setup and training, and more.

We will provide you with guidance and support on what you'll need to do to establish and commence running your new business

We can provide advice on the best business structure for your needs and take care of establishment and registrations

Set up your Xero file so it's optimised for you and give you initial training so you start off in the right way

Preparation of a budget tailored to your business and input into Xero so you can track how you're going

Starter pack

We prepare your BAS returns ready for you to review and pay. We also remind you of when and how much to pay, and even send an alert if you forget! Requires Xero.

Prepare BAS

If you would rather be doing something else, let us do your bookkeeping for you. We love coding and checking and you can relax knowing it's all done right, and on time. Requires Xero.

Bank reconciliation

Input and review of crypto investments per report generated by platform. If not managed/self-managed, please get in touch with our support team for further details.

Crypto

We'll set up your Xero file from scratch, then give you the training you need to use it to its full potential.

Xero setup & training

Input and review of rental activity per agent statement and additional receipts not included in statement e.g. home loan statements, depreciation report. 

If not managed/self-managed, speak to our support team for further details.

Property

Don't know what fringe benefit tax is? Learn about it in our FBT guide.

FBT return (annual)

We set you up with the right Xero subscription and manage your payments.

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We set up your Xero file so it is optimised for you and your business.

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An hour of training on how to use Xero to it's full potential.

Xero training

If you would rather be doing something else, let us do your bookkeeping for you. We love coding and checking and you can relax knowing it's all done right, and on time.

Large bank reconciliation

Navigating the world of entertainment expenses can be tricky. What kind of entertainment expenses are tax-deductible and which ones aren’t? We give you a rundown of the basics.

EXPENSES  •  6 JUNE 2025  •  2 MIN READ

Confused about claiming entertainment expenses? Learn what’s deductible for Australian businesses, how the ATO defines entertainment, and common exclusions to watch for.

Entertainment Expenses in Australia | What You Can and Can’t Claim

Back in corporate Australia in the 80’s, people were wining and dining staff and clients to “talk business” and claiming tax deductions under the umbrella that it was doing business. The government wasn't happy about it so they reformed the tax laws regarding entertainment and due to its nature and multiple scenarios, it’s one of the most complicated areas of tax law.

As a business owner, you know that entertainment expenses are an important part of your overall financial picture. Not only do they help keep your staff happy and increase their morale but it adds a positive culture to your business. But navigating the world of entertainment expenses can quickly lead you down a rabbit hole - what kind of expenses are tax-deductible, and which ones aren’t?  

This guide will provide you with the information you need for entertainment expenses:

Entertainment can mean providing food, drinks and recreation. Recreation can include amusement, sport and similar leisure time activities e.g. tickets to sporting events, cruises, a joyflight or a harbour cruise.

It also includes accommodation or travel in connection with such entertainment above. 

Farewell and special celebration functions

Entertainment expenses are generally not deductible (unless subject to FBT). 

A couple of main exceptions need to be noted:

Sustenance is not considered entertainment. For example, providing tea and coffee in the office for your staff is sustenance and not entertainment. Same with a few sandwiches given at a staff training session or morning or afternoon tea.

Some entertainment is subject to FBT and if you pay FBT on an expense, then it is deductible for income tax. This is because FBT is already a tax on companies and the ATO doesn't want to give you a double kick of tax.

There are other exceptions listed in the Income Tax Assessment Act in s32-30 Employer expenses, s32-35 Seminar expenses, s32-40 Entertainment industry expenses, 32-45 Promotion and advertising expenses and s32-50 Other expenses. Many of these are complicated and require a whole article to explain. 

If an expense is deductible for income tax, then you will be able to claim GST on that expense. The GST follows the deductibility of the expense.

This heading might make you think of an inquisitive kid talking to you but actually, it’s a really good way to determine if an expense is considered entertainment. If you’re really keen for some bedtime reading, you can check out the details of these 4W’s in this tax ruling.

If you are providing food and drink to an employee, these four simple questions could be asked:

Why - Why was the food and drink provided? Were they just refreshments to complete the working day or was it provided to the employee to enjoy themselves?

What - What type of food and drink was it? Was the food pretty standard or was it fancy? Having alcohol as part of the equation points more towards entertainment than business.

Where - Food or drink provided on your business premises or at the employee's usual workplace is less likely to be entertainment. Food or drink provided off your business premises, such as at a function room, hotel, restaurant or consumed with other forms of entertainment, is more likely to be entertainment.

When - was it during the work day, during overtime or while an employee was travelling? If so, this is less likely to be entertainment.

The easiest way to give you an understanding of what is deductible can be done through common examples your business may face. This is not a comprehensive list but it gives you a starting point to think through how it works.  

^ A minor benefit is one that is provided to an employee or their associate on an 'infrequent' or 'irregular' basis, which is not a reward for services, and at a cost less than $300 (inclusive of GST) per benefit. Read more about it from the ATO here.

Valuing entertainment benefits will affect the deductibility of expenses and GST claimability.

The Australian Tax Office (ATO) provides three methods that can be used by businesses to value and record their entertainment expenses:

The Actual Method and the 50/50 Split Method are the most commonly used.

This method requires all entertainment benefits to be separated into the following categories:

Client entertainment is not tax-deductible and GST input tax credits cannot be claimed.

Meal entertainment provided to staff (and their associates) is subject to Fringe Benefit Tax. These costs will be tax-deductible and you are able to claim the GST input tax credits.

Minor benefits provided to staff (and their associates) are not tax-deductible and GST input tax credits cannot be claimed.

The 50/50 Split Method is the easiest method to use. It takes the value of all meal entertainment provided (for staff, associates, clients and other persons) and treats 50% of the total as taxable entertainment.

Therefore, a tax deduction will be available and GST input tax credits can be claimed on the 50% subject to FBT. The other 50% is not deductible and GST input tax credits cannot be claimed.

The Minor Benefit Exemption does not apply if you choose this method.

GST can’t be claimed on non-deductible entertainment expenses. Only the GST portion of claimable entertainment expenses can be deducted.

For example, you’ve spent a total of $150 on books as gifts for your employees during April, May, and June. You’re eligible to claim the GST portion ($150/11 = $13.64) of your entertainment expenses at 100%. This is because the gifts are not entertainment.

You need to keep records such as invoices or receipts in order to make claims. As required by the ATO, you also need to keep records of the following information:

Who is the recipient of the entertainment (are they an employee, associate of the employee or another person)

Beany are accountants for ambitious businesses, delivering big firm expertise without the big cost. We handle everything accounting-related (such as annual compliance, bookkeeping, financial insights and strategy), and help business owners make smarter decisions for their business and lifestyle through our responsive, friendly expertise. Book a call or get in touch if you want to discuss your business and see how we can help.

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Whether you're filing for the first time or a seasoned professional, this list provides the key things you need to know when filing an Australian income tax return.

Lodging a tax return in Australia? Read a quick-fire list of key facts about filing income tax returns in Australia.

Australian Income Tax Returns Explained | Key Facts for Sole Traders & Businesses

Do you know all there is to know about filing a tax return in Australia? There are always misconceptions floating around, so we’ve put together a handy fact sheet to cut through the noise. Whether you're filing for the first time or a seasoned professional, you need to file your tax returns correctly, on time, and (ideally)  with the best outcome possible.​

This list provides a quick rundown of the key definitions, deadlines, and aspects of filing an Australian income tax return. Knowledge is power, as they say, so read on to keep yourself informed.​

The financial year (tax year) in Australia runs from 1 July to 30 June. 

Taxable income and deductions must be reported in New Zealand dollars.

Late filing of tax returns may result in penalties, interest charges, and loss of extension of time (for those with a tax agent)

Income tax returns are used to calculate the amount of income tax owed for the tax year.  Even if you're filing frequent BAS returns, you still must file an annual income tax return, as it is a separate tax.

Tax returns can be amended if you find errors or omissions after they've been filed.

You must file a tax return if you derived any form of business income, self-employment income, or contracting income. If you operate your business as a sole trader you must lodge a tax return even if your income is below the tax-free threshold.

Taxable income includes salary and wages, interest, dividends, business income, and rental income.  

The tax rate for sole trader tax returns is based on personal income tax rates. The ATO's website has more information about individual income tax rates.

You can claim a tax credit for tax deducted before it was paid to you - for example, PAYG deductions made by your employer, Resident Withholding Tax (RWT), or Franking Credits showing on dividend and interest certificates.

Tax returns must be filed by the 31st of October for the previous tax year if you decide to file yourself, or by the 15th of May of the following year if you're working with a registered tax agent. Note that you need to register with the tax agent before the 31st of October.

Business expenses can be claimed in a tax return against business income as long as it helps generate taxable income. You’re not eligible to claim expenses that have ‘personal elements’. 

If your company is trading, you must file a corporate tax return, this is regardless of whether the business is reporting a profit or loss.

Your tax lodgement and payment dates will vary, depending on your turnover and your company structure. You can refer to the ATO for the most up-to-date lodgement and payment dates.  Generally, the lodgment and payment date for small companies is the 28th of February. If you have any prior year returns outstanding the due date will be the 31st of October.

Comapny tax returns are used to calculate the amount of company tax owed for the tax year. Company tax rates can be found on the ATO website. 

If your company generates a loss during the period the tax return calculates the taxable loss that can be carried forward and offset against future taxable profits, therefore reducing your tax liability in future periods.

The company reports its taxable income, tax offsets and credits, PAYG instalments and the amount of tax it is liable to pay on that income or the amount that is refundable.

Tax credits are sometimes available. For example, if you hit certain criteria during R&D, such as innovation or making advancements in science and technology, then tax credits can be claimed. There are also tax concessions available for small businesses with an aggregated turnover of less than $10m, simplified depreciation rules (including the immediate write-off of depreciating assets), and Capital gains tax (CGT) concessions. Your accountant at Beany will be able to ensure that you don’t miss out on any of these concessions.

The law sets time limits for amending your tax assessment, and are generally:
- two years for small businesses
- two years for medium businesses
- four years for other taxpayers
This time limit starts from the date of your notice of assessment.

Business expenses can be claimed in a tax return against business income as long as they are incurred wholly and exclusively for the purposes of the trade.

The ATO plays a role in every Australian income tax return

The Australian Taxation Office is responsible for collecting taxes from both individuals and businesses, as well as administering tax laws passed down by the Australian government. They also manage benefits, tax credits, and other financial support for Australian citizens (such as student loans and child support). Understanding how the ATO works is a vital part of submitting a tax return correctly, so here are some key points to keep in mind.

The ATO can audit tax returns to ensure compliance with tax laws.

The ATO can impose fines and penalties for non-compliance with tax laws.

The ATO provides tax tables and calculators to help calculate the amount of tax owed.

Employers are required to deduct Pay As You Go (PAYG) tax from employees' salaries and wages and remit it to the ATO.

The ATO can negotiate payment plans for taxpayers unable to pay their tax debt in full.

The ATO can issue tax assessments if it finds errors or omissions in tax returns.

Tax refunds can be claimed by filing a tax return or by contacting the ATO.

The ATO offers a range of online tools and resources, including tax calculators, tax guides, and tax information bulletins.

The ATO refunds overpaid tax, including PAYG and GST. Tax refunds may be offset against outstanding tax debts.

Businesses must keep records of their income and expenses (e.g., bank statements, receipts, invoices) for at least 5 years as per ATO’s requirements from the date of the lodging of the tax return.

Employers must keep records of employees' salaries and wages, PAYG tax deducted, and superannuation contributions for 7 years.

Professional help from a registered tax agent or accountant can minimise the risk of errors and penalties and help ensure compliance with tax laws.

How can Beany help with business tax returns?

We understand accounting and tax can be overwhelming and we're here to help. Beany's certified accountants and friendly team can prepare and file your business tax return plus returns for shareholders/directors. We carefully interpret and apply accounting and tax legislation to enable you to pay the least amount of tax legally possible.

Our expertise comes without the jargon and is designed to help you save money and make the best decisions for your business (and lifestyle). To find out more about how we can help, book a call to discuss your requirements.

The facts to know when filing an Australian income tax return

Everyone tries to make the most of recording their personal vehicle as a business expense while the ATO is doing their best to minimise the eligibility.

EXPENSES  •  5 JUNE 2025  •  6 MIN READ

Using a vehicle for business? Find out how to claim motor vehicle expenses in Australia, including logbook rules, claim methods, and what the ATO allows.

Claiming Motor Vehicle Expenses in Australia | Business Use Guide

Here’s the deal. Everyone is trying to make the most of their ability to record their personal vehicle use as a business expense, and in response, the ATO is doing their best to minimise the eligible criteria.

When you’re a client of ours, you won’t have to worry too much as we make sure you always claim the right amount. But regardless, let’s explore how motor vehicle expenses work.

Motor vehicles for employees, sole traders and partnerships

If your vehicle is used solely for business or work purposes, all motor vehicle expenses (e.g. fuel, maintenance, servicing, insurance, registration, replacement tyres, and similar) can be claimed as expenses.

However, business purposes doesn't include school drop-offs, going to the supermarket, picking up the mail, or even travelling between home and your regular place of work. 

The only exceptions are where your home is the base of employment, you're carrying bulky tools and equipment, and you're itinerant (i.e. travel from place to place for work rather than a fixed location such as a plumber or electrician whose work location would vary).

When an employee, sole trader or partnership chooses to use a business vehicle is used privately, the costs need to be separated.

One reporting option is keeping a logbook

A logbook records all travel over 12 weeks*. It notes the distance, date and reason for each trip. This information can then be used to understand the proportion of use allocated to the business, and we then apply the percentage of business travel to all vehicle expenses incurred i.e. if it’s 70% of the time, 70% of insurance or a service can be claimed as a business expense.

Depreciation can also be claimed based on the business use of the vehicle.

*Assuming your travel habits don’t change significantly, your logbook can be valid for up to five years.

There’s also some good news about logbooks. You can digitise the whole process with an app to save time. You may want to check out Driversnote or the ATO’s myDeductions app.

If you don’t intend to keep a logbook, you can claim $0.88 per kilometre for up to 5,000km. You’ll still need to track your business travel, but without as much detail as in a logbook.

When it comes to companies, motor vehicles that are available for private use are treated differently to sole traders.  If a director, shareholder or employee has a car available to them for private use (whether or not it is used for private purposes), then they are receiving a benefit and it is subject to Fringe Benefits Tax (FBT).  

One way to avoid the FBT is to use the FBT Cashout whereby an employee, shareholder or director reimburses the company for this benefit.

Reimbursing the company for this benefit.

We calculate the reimbursement based on either a logbook or on the vehicle’s GST-inclusive value when it was brought into the company, and the number of days it’s available* for private use. The reimbursement is then recorded as a separate income line in the company’s financial statements (it’s considered income because the company is receiving compensation from the director or shareholder).  It's important to note that GST is also payable on the reimbursement.

*Availability for private use: shareholders reimburse the company for any day that the vehicle is 'available' to them, which includes when the vehicle sits in their driveway.  Exceptions to this rule exist where a vehicle serves a specific function, which cannot take passengers (considered an exempt vehicle), and the vehicle has private usage that is minor, infrequent and irregular. 

The FBT contribution also applies to non-shareholder employees. Their benefit falls under the Fringe Benefits Tax (FBT) regime and is accounted for similarly.

Can I claim GST on a personal vehicle that I use for business?

Yes you can. If you’re a sole trader, you can record the vehicle as a business asset. GST can be claimed on its market value at the time the vehicle is introduced to the business.

If you operate through a company, the business is able to claim the GST on the business usage of the running expenses of a personal vehicle.

How much GST can I claim if I borrow to buy a vehicle?

You can claim 1/11th of the car limit. The car limit for 2025 is $69,674, meaning the maximum GST that can be claimed is $6,334.

The easiest way is to provide your accountant with the sale and purchase agreement and your financing arrangement, and they'll enter it into your accounting software and make sure it's recorded correctly in your next GST return.

Are my loan repayments a business expense?

No, they aren’t. The payments are going towards reducing your loan balance. However, we can claim the interest on the loan for business purposes. We make this adjustment when we prepare your financial statements after year-end.

What happens when I sell a business vehicle?

If you’re registered for GST, you need to include GST on the sale price

If the sale is to yourself or a related party, you’ll need to know its market value (you’re not allowed to sell it to yourself for $1)

Tax must be paid on any profit from the sale

Your asset needs to be removed from the fixed asset register (please leave this to your accountant)

If the proceeds from the sale don't go through your Xero-connected bank account, you just need to let your accountant know the sale price and they'll handle it from there.

Is it smarter to borrow to purchase a vehicle, or lease instead?

The vehicle belongs to you or the company, assuming you meet the loan conditions

GST can be claimed on the full purchase price  (up to the car limit)

It’s an asset, and we will depreciate it as an expense over a number of years

The loan repayments are not deductible, but the interest portion is

In nearly all cases, the vehicle doesn’t belong to you or the company

It’s not a business asset, so we can’t depreciate it

The lease payments are fully tax-deductible

Here’s when we often get the follow-up question: 'What is my best option for tax purposes?'

That’s one we can’t answer. It’s more of a business decision and it depends on your cash-flow, available finance and personal preferences.

Beany are accountants for ambitious businesses, delivering big firm expertise without the big cost. We handle everything accounting-related (such as annual compliance, bookkeeping, financial insights and strategy), and help business owners make smarter decisions for their business and lifestyle through our responsive, friendly expertise. Book a call or get in touch to discuss your business and see how we can help.

What motor vehicle expenses can I claim for my business?

Learn how to claim home office expenses in Australia. Understand calculation methods, eligible deductions, and what records you need to keep.

EXPENSES  •  5 JUNE 2025  •  10 MIN READ

Working from home? Learn how to claim home office expenses in Australia. Understand calculation methods, eligible deductions, and what records you need to keep.

Claiming Home Office Expenses in Australia | ATO Rules for Business Owners

Working from home and running a home business has become much more common and 'normal' over the past few years. In this guide, we are going to cover:

What’s the difference between a home office vs. conducting a home business?

How do you calculate your home office expense deduction - 3 different methods?

The importance of keeping records and seeking professional advice

Home Office vs. Conducting a Home Business

The type of expenses you can claim is determined by whether you are running a business from home, or simply using your home office.

Using a Home Office is where you work from home to fulfil your employment duties, not just carrying out minimal tasks, such as occasionally checking emails or taking calls.

Conducting a home business is one where your home is also your principal place of business. That is, you run your business at or from home, and have a room or space set aside exclusively for business activities. 

How you operate your business (in other words your business structure) has an impact on what home office expenses you can claim.

If you operate your business as a sole trader or partnership and your home is the principal place of business, you can claim a tax deduction for the running and occupancy expenses for your home office. 

If you operate your business as a company or trust, you must have a genuine, market-rate contract (or similar agreement) with the property owner. This will determine the amount of tax you can claim as a deduction. However, if the contract or rental agreement is not deemed genuine, you may run into issues.

There are two types of home office expenses you can claim: 

Running expenses refer to the cost incurred for using your home utilities to conduct business activities. For example, 

Depreciation of business furniture and equipment 

You are eligible to claim running expenses even though you don’t have a work area at home or your home is not the principal place of your business.

Occupancy expenses refer to the cost you pay for your own or rent your home. For example, 

You are only eligible to claim occupancy expenses as a part of tax deduction if the area of your home is the principal place of business. It should be clearly identified as a place of business. This means the area shouldn’t be easily adaptable for personal or domestic use and it should be used exclusively or almost exclusively for business purposes.

When calculating occupancy expenses, the amount you could claim for tax deduction depends on the proportion of the area and the year it is used for business. 

There are two methods to calculate home office expenses:

Method 1: The fixed rate method - An amount per work hour for additional running expenses plus expenses not covered by the fixed rate

Method 2: The actual cost method - The actual expenses you incur because of working from home

Choosing which one of the two methods to calculate home office expenses is entirely up to you as long as it is reasonable for your business situation. Your accountant will be able to help you choose a method that gives you the largest deduction.

You can also find out more about what other business expenses you can claim here. 

Using ATO’s fixed rate method is the most straightforward method when calculating home office expenses as a business owner. 

It uses a flat rate of 67 cents for each hour you worked from home. This rate includes running expenses such as heating, cooling, lighting, depreciation of home office furniture and furnishing, and cleaning for the home office. 

It does not include home office expenses such as phone and internet, depreciation of assets, and computer consumables and stationery (e.g. ink). You will need to calculate those home office expenses separately. 

All you need to do to claim this is to keep a diary - note the time you start work each day, the time you finish work each day and any breaks. To simplify this, you can use a representative 4-week period. You can then claim 67 cents per hour for each working hour. 

For example, you work from home 30 hours per week during a representative 4-week period. This means the total home office expenses you could claim using the fixed rate method for the year (assume you work 50 weeks per year) is 30 hours x 50 weeks x 67 cents = $1005 

Once you calculate your deduction, enter the amount at 'Other work-related expenses' in your tax return.

Another method is to claim the actual costs incurred. This means you will need to calculate each item individually and keep the records of the proportion of business and personal use of the items and the hours using them for work. 

You may be eligible for an immediate tax deduction if the depreciating assets cost less than $300 whereas for depreciating assets cost more than $300, you can only claim a tax deduction for their decline in value over the business proportion in their effective life.

For example, according to the records and diary you keep over a 4-week period, you spend 30% of your time from your home office. This means you can claim 30% of the costs of the following expenses:

If you use your home office as a primary place of business (e.g. a hairdresser), to calculate occupancy costs while using the actual cost method, you will need to calculate the percentage of your workspace to the total space of your home. The following is how you calculate the deduction:

Total occupancy expenses (actual) × floor area percentage (including garage) × % used for work purposes.

In general, CGT doesn’t apply when you sell your home. However, if you intend to claim occupancy expenses because your home is the place where you conduct your business, there may be capital gains tax implications. This means CGT may be applied to the proportion of your home and the period of it being used for business. 

There are a few exemptions when CGT won’t apply. These are when you operate your business from a rented property, when you do not have an area in your home that is exclusively for business use, or when you operate your business as a company or trust. 

Keeping records and seeking professional advice

It’s important to keep records of all the home office expenses you intend to claim such as invoices, evidence of payment, and business bank statements. If you are claiming occupancy expenses, you need to keep records of mortgage interest, insurance, council rates, and rental agreement if you operate as a company or trust. 

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