The Australian Tax Office or ATO is a complex organisation with a plethora of checks, balances and laws to uphold. It’s not all bad though, they can save you money if you know what expenses are tax-deductible and how to go about filing the right paperwork. Deductions are expenses which your business would have had to pay in order to earn an income. With this in mind, businesses can reduce their taxable income and you may just be able to deduct tax for your business storage needs.
Is Storage Tax-deductible?
Storage is tax-deductible, in certain instances. Before you get ahead of yourself though, there are terms and conditions to adhere to and not everyone can claim. Your personal storage needs you cannot claim for, and if your storage unit is filled with both business and personal items, you can only claim for the amount of space taken up by your business items.
Who Qualifies for Tax-Deductible Storage?
As with any tax regulations, governments have to ensure that the Australian public doesn’t abuse the system and divert funds from essential government services and programs. While not every business can deduct tax for storage, there are many which can. For example, if your restaurant or agricultural business needs extra space for non-perishable goods, a storage unit will save you money as opposed to keeping the excess items on site. The same goes for businesses which sell goods online or even more mobile businesses which need a place to store their tools. The important thing is that you are can prove that your business needs the storage space to earn an income.
What Else Can I Claim Tax Back On?
Don’t despair if your business is unable to deduct tax for storage, there are lots of other ways your business can save money and decrease your taxable income1.
Other tax-deductible items:
- Business travel
- Conferences and seminars which relate to your business
- Self-education
- Uniforms and protective clothing
- Equipment and tools
- Telephone and internet expenses
- Tax agent fees
Don’t Do This
Tax is the least fun you can have running your business. The prospect of paying less money and even getting a refund, however, does make it worth the effort. There are still things you can do to ease the stress and get the most out of tax season.
- Don’t dismiss how helpful tax consultants can be, their area of expertise lies specifically in finding ways to save you money and ways to keep you out of trouble. Just make sure your chosen tax professional is registered.
- Keep proof of every purchase and expense you want to claim for, without that the Australian Taxation Office will deny your claim.
- Don’t claim for personal expenses.
- Don’t try to claim for expenses which aren’t valid; travel that isn’t work-related, conferences and seminars which didn’t occur, education which is not related to your business or line of work will all be denied by the ATO.
- Don’t wait until the last minute to get your taxes in order, keep up with them throughout the year and manage your expenses to save yourself the stress and prevent mistakes.
Whether your business is eligible for tax-deductible storage or not, Kent Storage we will be able to save you money on storage. With over 70 years of experience in the storage industry, our professional staff can help you get all of your business goods in order. For more information, advice or to book a storage unit get in touch with us now.