The Australian Taxation Office (ATO) has released its 2025 Tax Time Toolkit to help business owners get their tax right.
The toolkit includes checklists, fact sheets and practical tips to help you avoid common mistakes and meet your obligations.
If you run a small business, these are the key things to focus on this tax time:
- Check your work-related deductions
Make sure you're only claiming expenses that are directly linked to earning your business income. Common deductions
include tools, equipment, business travel and marketing costs.
If an expense is partly for work and partly personal, only claim the work-related portion. Keep receipts and records to back up your claims. Check the rules for common deductions before you lodge.
- Know the rules for working from home
If you run your business from home and have a dedicated area used only for work, you may be able to claim part of your occupancy and running expenses. This can include costs like electricity, internet, phone and a portion of your rent or mortgage interest.
If you don’t have a specific workspace but still carry out some business tasks at home, you might still be able to claim a share of your running expenses for the area you use.
Make sure you keep detailed records and pick the claim method that fits your situation.
- Don’t forget income from side jobs
All income must be reported, including earnings from online sales or contract work.
The ATO is focusing on contractors in industries like building, cleaning, courier, IT and security, where payments are reported under the Taxable Payments Reporting System. Make sure you declare all income to avoid penalties.
- Check your records before you lodge
Accurate records help support your claims and reduce the risk of errors. You’ll need receipts, invoices, bank statements and mileage logs. If you’re not sure what’s needed, the ATO’s guides can help.
- Use the ATO’s 2025 toolkit
The ATO’s Tax Time toolkit for small businesses includes fact sheets on key topics like home-based expenses, motor vehicle costs, travel and what to do if you're pausing or closing down.
