Top Tax Deductions Every Small Business in Perth Should Know in 2025

Tax season can be a stressful time for small business owners. With constantly changing tax laws and obligations, it's easy to overlook opportunities to reduce your taxable income. Fortunately, by working with experienced tax accountants in Perth, small business owners can uncover a range of deductions that may significantly improve their bottom line. In this blog, we explore the top tax deductions every small business in Perth should consider in 2025, helping you stay compliant while maximising returns.

1. Instant Asset Write-Off

One of the most beneficial deductions available to small businesses is the Instant Asset Write-Off. In 2025, eligible small businesses can immediately write off the full value of assets purchased for business use, such as equipment, tools, vehicles, or office furniture. This means you don’t have to depreciate the asset over several years — you can claim it all in the same financial year, improving your cash flow and reducing taxable income quickly.

Make sure the asset is installed and ready for use within the eligible timeframe to qualify. A small business tax accountant in Perth can help ensure you meet all ATO conditions.

2. Home Office Expenses

With more business owners operating remotely or from home, claiming home office expenses has become more relevant than ever. You may be able to claim a portion of your rent or mortgage interest, electricity, internet, phone bills, and even depreciation on office equipment. In 2025, the ATO is expected to continue offering simplified methods, such as a fixed rate per hour, but working with a professional can help ensure you choose the method that maximises your deduction.

A qualified tax accountant in Perth can calculate these deductions accurately and ensure they align with your actual business usage.

3. Vehicle and Travel Expenses

If you use your car for business-related travel — such as client meetings, supplier visits, or deliveries — those expenses may be tax deductible. This includes fuel, registration, insurance, servicing, and depreciation. In 2025, you’ll likely still have the option to use either the logbook method or the cents-per-kilometre method. Business trips interstate or regionally for conferences or meetings are also deductible, including transport, accommodation, and meals.

Keep detailed records, and consult a small business tax accountant in Perth to ensure everything is compliant.

4. Employee Wages and Super Contributions

Payments to employees — including wages, bonuses, allowances, and compulsory superannuation contributions — are fully tax deductible. If you’re paying superannuation, it’s important to ensure payments are made before the EOFY cut-off to claim them in that financial year. In 2025, with changes to super guarantee rates and reporting obligations, it’s critical to stay up to date.

Professional tax accountants in Perth can help manage payroll tax obligations, STP reporting, and superannuation compliance.

5. Marketing and Advertising Costs

All costs associated with promoting your business are generally tax deductible. This includes website development, SEO services, print and digital advertising, and sponsorships. As competition increases in 2025, many small businesses are investing in digital marketing — and the good news is, these costs can be claimed as business expenses.

If you're unsure about what qualifies, a small business tax accountant in Perth can guide you on what's deductible and what needs to be capitalised.

6. Professional Services and Advice

Fees paid to accountants, consultants, bookkeepers, and legal advisors are all deductible when they relate to your business operations. This also includes software subscriptions such as Xero or MYOB, which are essential for managing finances. In 2025, with the rise in cyber threats and digital compliance, businesses may also be able to deduct expenses related to cybersecurity and IT support.

Working with a trusted tax accountant in Perth ensures you maximise your claim while staying ATO-compliant.

7. Business Insurance Premiums

Most business-related insurance policies are tax deductible. This includes public liability insurance, professional indemnity, business interruption cover, and insurance on assets such as buildings or equipment. With increasing risks in the current economic environment, many Perth businesses are reassessing their coverage in 2025 — making this an important and deductible expense.

8. Training and Education

Any training or education that upskills you or your team — and is directly related to your current business — is tax deductible. This can include workshops, online courses, and industry certifications. For small businesses in Perth, investing in staff development is not only a smart growth strategy but also a tax-effective one.

Ask a small business tax accountant in Perth whether your planned courses or training expenses qualify under the latest ATO guidelines.

9. Repairs and Maintenance

Expenses related to repairing or maintaining business assets — such as office premises, equipment, or vehicles — are deductible in the year they’re incurred. However, improvements or upgrades may need to be capitalised and depreciated over time. The line between maintenance and capital improvement can be blurry, which is why professional guidance is crucial.

An experienced Perth tax accountant can help ensure your claims are categorised correctly.

Final Thoughts

Navigating the Australian tax system as a small business owner can be challenging, but understanding the most relevant deductions can make a big difference to your year-end result. The key is to maintain accurate records, stay updated with ATO rules, and seek expert advice to ensure you’re claiming everything you’re entitled to.

If you're looking to reduce your tax liability and improve your business’s financial health in 2025, our experienced tax accountants in Perth are here to help. We specialise in working with local businesses across industries and can provide tailored advice to suit your specific needs.

Visit our website https://perthtaxpeople.com.au/business-accountants-perth/ to learn more or book a consultation with a trusted small business tax accountant in Perth today.