Together Business - Blog

Claiming Personal Tax Deductions: A Practical Guide for First Nations Business Owners

Wed, 16 Jul 2025 10:22:03 +0930

"Your business success relies on strong foundations, and that includes understanding your own personal tax obligations. Knowing what you can claim helps you keep more of what you earn and strengthens your future."

Many First Nations business owners and community leaders spend significant time making sure their business tax obligations are in order, but it is just as important to focus on getting your personal tax return right.

This guide explains what you can and cannot claim on your personal tax return to help you maximise legitimate deductions while staying compliant with ATO rules.

Inside, you will find clear information about allowable claims, expenses you cannot claim, details on the Zone Tax Offset for remote areas, record-keeping requirements, and helpful ATO resources to make lodging your return easier and more confident.

The Golden Rules for Deductions

The ATO has three clear rules for any deduction you want to claim on your personal tax return. First, you must have paid for it yourself and not been reimbursed. Second, the expense must be directly related to earning your income. Third, you need to have a record to prove it. If you do not meet all three of these rules, you cannot claim the deduction.

What You Can Claim on Your Personal Tax Return

There are several types of expenses you may be able to claim in your personal return, depending on your work situation.

Car and Travel expenses can be claimed if you travel between different workplaces or job sites, or visit clients and suppliers. Normal commuting from home to your usual workplace is not deductible. You can claim using the cents-per-kilometre method (up to 5,000 km) or the logbook method for actual expenses. The ATO expects you to keep logbooks, receipts, and travel diaries for overnight trips. For more detail, see the ATO Car Expenses Guide.

Clothing and Laundry expenses are claimable if you buy compulsory work uniforms, protective clothing like high-vis or steel-caps, or occupation-specific items. Everyday clothes, even if you wear them at work, are not deductible. Keep purchase receipts and records of laundry costs. More information is in the ATO Clothing and Laundry Guide.

Home Office Expenses can be claimed if you work from home, even part-time. You may claim electricity and internet costs, depreciation on work equipment, and work-related phone and internet use. The ATO allows you to use either the fixed rate (70 cents per hour from 1 July 2024) or actual cost method. Employees cannot claim occupancy costs such as rent or mortgage interest. You will need a log of hours worked from home and relevant bills and receipts. See the ATO Home Office Expenses Guide for more detail.

Self-Education and Training costs can be deductible if they directly relate to maintaining or improving skills for your current job. This includes course fees, textbooks, stationery, and depreciation on equipment such as laptops. You cannot claim study costs for training to get a new job or switch careers. Keep receipts and invoices as proof. Visit the ATO Self-Education Expenses Guide.

Tools and Equipment purchases are claimable if they are used for work. You can claim the full cost if it is $300 or less, or depreciation for items over $300. Repairs and insurance for work-related equipment can also be claimed. Keep receipts and depreciation schedules. More detail is in the ATO Tools and Equipment Guide.

Other Work-Related Expenses may include union fees, professional memberships, work-related journals and books, and safety gear not supplied by your employer.

Other Personal Deductions can include donations over $2 to registered charities (with receipts), last year’s tax agent fees, personal super contributions (if you have lodged a notice of intent with your fund), and costs to manage your tax affairs.

Zone Tax Offset

If you live or work in a remote or isolated area of Australia, you may be eligible for the Zone Tax Offset. This offset recognises the higher cost of living in remote locations.

To claim it, you need to have lived or worked in a designated zone for at least 183 days in the income year, or averaged over two years. The amount of the offset depends on your zone (Zone A, Zone B, or a special area).

You will complete the Zone Tax Offset section in your tax return. For details, including zone maps and eligibility criteria, see the ATO Zone Tax Offset Guide.

What You Cannot Claim on Your Personal Return

It is just as important to understand what the ATO does not allow you to claim.

You cannot claim the cost of everyday clothing such as suits, jeans, or shirts even if you wear them for work. Personal grooming and maintenance expenses such as haircuts, cosmetics, or gym memberships are not deductible.

Employees cannot claim home occupancy costs like rent, mortgage interest, council rates, or insurance. For work-from-home claims, you can only claim running costs such as electricity using the fixed-rate or actual-cost methods.

Normal commuting from home to your regular workplace is considered private and is not deductible. Entertainment expenses such as meals or drinks for social occasions are also excluded. Finally, you cannot claim expenses that your employer reimbursed.

What Records Do You Need?

The ATO requires you to keep records for five years after lodging your return. This includes receipts and invoices, bank statements showing relevant transactions, logbooks for car claims, records of hours worked from home, and travel diaries for overnight work trips. Digital copies are accepted as long as they are clear and legible.

ATO Occupation-Specific Guides

The ATO offers detailed guidance for different occupations and industries, which can be especially useful if you work in a specific role or manage staff with different needs.

These guides cover professions such as nurses and midwives, tradies, teachers, real estate agents, and defence force members.

You can browse the full list here: ATO Occupation Guides.

Final Word

Managing your business finances is only part of the story. Understanding your personal tax deductions ensures you claim what you are entitled to while staying compliant.

Be sure to follow the ATO’s guidelines, keep clear records, and seek advice from a registered tax agent if you are not sure.

If you need support with your personal or business tax obligations, reach out. We are here to help.

How does an accountant save you money?

Thu, 28 Mar 2024 16:37:26 +0930

Turning a profit will be high on your list of goals as a business owner. And if you want to generate the best margins, that means keeping an eye on the money that’s going out of the business, as well as what’s coming in.

So, how can your accountant help with this?

The days where your accountant just did the bookkeeping, compiled your accounts and filed your tax return are well and truly over. Modern accounting firms are far more interested in helping you with your financial performance, your business strategy and offering flexible value-add services that put you in better control of your finances.

If you partner with the right accountant, we can actually save you money – in both the short, medium and long-term. And that’s good news for the growth of your business.

Key ways your accountant can enhance your financial health

The less expenditure you have as a company, the bigger your profit margin. It sounds incredibly simple, doesn’t it? - The smaller your costs, the larger your profit. But if you’re not fully in control of your financial management, it’s very difficult to know WHERE you’re spending money, and WHY you’re not achieving your profit targets.

This is where working with a finance professional adds a huge amount of value. Your accountant helps put you back in the driving seat of your finances – and that’s never been more needed than in the current economic climate.

So, what specific things can your accountant do and what will the impact be on the future of your business?

Tax advice and planning – tax costs can be one of your biggest outgoings as a business, so we’ll focus on getting your tax planning under control, applying for all the relevant tax incentives and ensuring you minimise the taxes on your profits. By paying only what you’re legally required to pay – and making use of any reliefs – we can significantly cut your tax spend in the business.
Cashflow management and advice – ‘Cash is King’ may be a cliche, but it’s true. Unless you can balance the cash inflows and outflows from your business, you’ll never have the liquid cash to pay your bills, cover your payroll costs or cover your operational expenses. We’ll show you where money is going out, and coming in, so you achieve the ideal positive cashflow position.
Cost control and spend management – to improve your cashflow, you need to reduce your cash outflows. An important way to do this is to focus on cost control and spend management, reducing your expenditure, removing unnecessary costs and negotiating better deals with your suppliers. The more you cut costs back, the better your cashflow will be and the easier it will be to thrive, grow and become more profitable.
Forecasting and financial modelling – when we understand the key financial drivers in your business, we can build you a full financial model. This allows us to change the variables, run ifferent scenarios and forecast the various future paths of your business. Being able to project these numbers forward gives you a clearer view of the path ahead – and that’s invaluable in the challenging economic times that we all face at present.
Better management reporting and information – your decision-making stands or falls on the information you have available to you. We provide detailed management accounts, breakdowns of key metrics and forecasts of your cashflow, spending, aged debt and revenue – all of which helps you to save money, make sound decisions and keep the revenues flowing into your business.

Talk to us about cutting costs and boosting profit

Rather than running your business on a wing and prayer, by working with an accountant you get a clear picture on your business financials. We’ll help you cut unnecessary costs, optimise the most profitable parts of the business and increase your overall return on investment.

Let’s talk about how we can work together to support your ongoing business profitability.

Get Started Now

The seventh cause of poor cashflow - Sales levels are too low

Mon, 25 Mar 2024 13:01:00 +0930

It might sound obvious, but it isn’t to many businesses. If current sales levels don’t support the overheads and other cash demands on the business, then your overdraft will keep increasing.

This means that your business in its current state is not viable (unless you have ongoing access to new funds from investors or financiers).

There are five ways to improve your sales levels. These are:

1. Increase customer retention.

Stop your customers from defecting to the competition.

2. Generate more leads.

Gain more enquiries from people who are not yet customers.

3. Increase your sales conversion rate.

Get more of your prospects to buy from you.

4. Increase transaction frequency.

Engage your customers to buy from you more often.

5. Increase transaction value.

Help your customers to buy more products or services from you.

There are literally hundreds of individual strategies that you can implement within these categories to increase sales. Sending you a list would be pretty silly of us and overwhelming for you. Some strategies don’t apply to your industry, and some just won’t work in your business for whatever reason.

What we have found through experiencing a wide range of client situations over the years, is that certain things do work in each type of business. There’s a pattern that we see in clients - both good and bad! How does a business grow its sales without its owners becoming overwhelmed by a mountain of change?

The best and most supportive way to grow and improve a business is to have someone looking over your shoulder from time to time, helping you build a plan and a forecast, and keeping you accountable to making the changes that will make the most important differences.

Without that support, we all end up in our business and never working on it. Talk to us about how we can provide that support.

The sixth cause of poor cashflow - Overheads are too high

Wed, 13 Mar 2024 05:25:00 +0930

At Together Business, we understand that keeping tabs on your expenses is crucial, especially as your business grows. While many business owners are diligent about managing costs, as your company expands, it's easy for management control to slip, leading to unnecessary spending.

To ensure your business stays lean and efficient, it's essential to regularly review your overheads. This should become a routine part of your business strategy, ideally conducted annually.

Here are some questions to guide your review:

Do you and your key staff have clear expense budgets? How are these budgets managed?
Have you taken a close look at your debt service costs and associated fees?
What policies do you have in place to control expenses for sales staff, including allowances, vehicle expenses, entertainment, and credit card usage?
How much did you spend on marketing and advertising in the past year? Have you evaluated the effectiveness of each spending component?
When did you last update your IT support contract? Are you paying a fixed monthly fee, and is it appropriate for your current needs?
Take stock of all your monthly subscriptions for SaaS cloud services. Are you fully utilizing these services, and are you on the right plan for each?
Do you view your accounting fees as a cost or an investment? If it's merely a cost, it might be time to explore ways to reduce it. However, if you're seeing tangible benefits from our services, consider increasing your investment for better business outcomes.

To maintain control over your spending, it's advisable to set budgets and monitor them regularly, preferably on a monthly basis. We're here to help you navigate this process and demonstrate how reducing overheads can positively impact your cash flow. Let's discuss the best approach for your business.

The fifth cause of poor cashflow - Gross profit margins are too low

Wed, 06 Mar 2024 05:13:00 +0930

Boosting your gross profit margin is essential for any business, especially those focused on social outcomes. It's not just about making more money; it's about making sure your hard work pays off financially.

What's Gross Profit Margin?

Your gross profit margin is what's left from your sales after you've covered the costs of making or buying the stuff you sell. For example, if you sell stuff for $1,000,000 but it costs you $650,000 to get or make that stuff, your gross profit margin is $350,000, or 35%.

The Power of Improvement:

Now, imagine if you could increase that margin from 35% to 39%. That might not sound like much, but it could mean a big jump in your profit—from $350,000 to $390,000, which is $40,000 more. Sure, you might need to spend a bit more to make that extra profit, but it's worth it.

Tailored Strategies for Success:

Every business is different, so there's no one-size-fits-all solution. If you run a shop, you might focus on stopping things like theft and making sure you don't discount too much. If you're a contractor, you might look at ways to reduce waste, make sure you bill for all your work, and help your team work more efficiently.

How We Can Help:

Figuring out the best ways to boost your margins can be tricky, but you don't have to do it alone. Our team knows how to help businesses like yours find the right solutions. We have tools, like our Cashflow & Profit Improvement Calculator, that can show you how even small changes can make a big difference.

Take Action Today:

Don't let low profits hold your business back. Get in touch with us, and we'll work with you to make sure your business is making as much money as it can. Your commitment to making a positive impact deserves to be rewarded financially, and we're here to help you achieve that.

What is your Money Mindset?

Thu, 29 Feb 2024 19:20:04 +0930

What's your money story?

What you believe about money and how you relate and interact with it affects every aspect of your life and business. A belief is simply a story that you have told yourself so many times that you think it’s the truth.

So, for us all to live a vital, vibrant, and thriving life, the story we’re telling ourselves and choosing to believe about money needs to be uncovered, understood, and possibly re-written.

Let’s start by understanding what money means to you, what it represents, and what feelings it evokes. Of course, there can never be one right answer. For some, money can represent freedom, opportunities, or fun. For others, money can evoke feelings of stress, inadequacy, or a lack of control.

However, money doesn’t have to be any of those things.

The associations that we unconsciously attach to money are (like so many things) based on our understanding, experiences, and environment. Money is just paper, metal, coding, and digital numbers on a computer screen. Peaks and troughs in the economy, fluctuations in money markets, and unexpected world events can affect the value of our money and our perception of it.

We should ask ourselves:

What really matters?
How does money fit in with our priorities?
How do we ensure our money story does not interfere with being the person we want to be?

But should we always be in pursuit of more money, more growth, and more success? Taking a moment to understand what truly drives us is a powerful and thought-provoking reflection to have. Uncovering our own money story in the greater context of our business and personal goals could be critical to our success.

While we love to help clients manage their money and grow their business, we believe all business owners should also have time and mind freedom. This means having time for family, friends and hobbies, and reducing the stress so many business owners face.

No matter what your goals are, we’ll help align your business and personal goals to ensure you have financial, time and mind freedom. Get in touch to find out more about how we can help.

"An investment in knowledge pays the best interest." - Benjamin Franklin

Maximising Your Impact: Tax Planning for Purpose-Led Businesses

Thu, 29 Feb 2024 18:35:33 +0930

Tax planning is more than just number-crunching—it's a strategic tool for maximising your business's potential to create social good. At Together Business Australia, we specialise in supporting social enterprises and purpose-led businesses like yours to ensure that your hard-earned cash contributes to positive change.

Why is tax planning important for your business?

Tax planning isn't just about minimising your tax liability; it's about aligning your financial strategy with your mission. Here's how it can benefit your purpose-led business:

Maximising Profits: Strategic tax planning helps identify available incentives, deductions, and credits, ultimately reducing your tax burden and increasing profitability.
Boosting Cashflow: By minimising tax payments, you free up cash flow, enabling you to reinvest in your mission and maintain financial stability.
Ensuring Compliance and Mitigating Risk: Proactive tax planning ensures compliance with tax laws, minimising the risk of penalties and legal issues that could divert resources from your social impact initiatives.
Driving Strategic Growth: By reallocating tax savings to strategic initiatives, you can fuel long-term growth and competitiveness, furthering your organisation's positive impact.
Gaining a Competitive Edge: Efficient tax planning lowers operational costs, giving you a competitive advantage in pricing, innovation, and revenue generation.

How can Together Business Australia support your tax planning needs?

As your tax adviser, we take a holistic approach to tax planning, considering your business's financial goals and social impact objectives. We'll work with you throughout the year to identify opportunities for tax optimization, ensuring that every dollar saved contributes to your mission.

Ready to maximize your impact through strategic tax planning? Contact us to learn more about how Together Business Australia can support your purpose-led business.

The fourth cause of poor cashflow - Your debt or capital structure

Thu, 22 Feb 2024 18:56:00 +0930

At Together Business, we're all about helping social enterprises like yours navigate the ins and outs of finances. In this part of our blog series, we're diving into a key aspect: how reviewing your existing debts can save you money and boost your cash flow.

To get started, gather all your current financial obligations. This includes things like loans from banks, mortgages, finance company loans, hire purchases, and credit card debts. Leave out any money owed to suppliers. Write down how much you owe, the interest rate you're being charged, whether the rate is fixed or changes, and how long you have to pay it back.

Think about combining your debts into one if you can, and stretching out the time you have to pay it back. This can free up cash for your business to grow or just cover your day-to-day expenses and personal spending.

If you're finding that the money you take out of the business for yourself is putting too much strain on your cash flow, it might be time to reassess. Maybe your business needs to make more profit to support your spending, or perhaps you need to put some money into the business to help it grow.

Take a close look at your personal spending habits. Make a list of everything you spend money on each year, like rent, childcare, groceries, and eating out. You might be surprised by how much it all adds up.

Sorting out your debts and how you're funding your business can make a big difference to your cash flow. We can help you work out an updated personal budget and Cashflow Forecast to see how much extra cash your business could have with a few simple changes.

Forecasting might sound tricky at first, but it's one of the most important tools for your business. We'll walk you through it, so you'll feel more confident about your financial future and sleep better at night. Let's work together to make your business finances stronger and more resilient.

The third cause of poor cashflow - Your stock turnover

Wed, 14 Feb 2024 10:34:00 +0930

Ensuring your shelves are stocked is important for any business, but it's equally crucial to keep your bank account healthy. If you provide services instead of physical products, imagine your work in progress as virtual stock – it needs to be managed efficiently to avoid financial strain.

Calculating your 'stock turn' is like figuring out how quickly you're turning your inventory or work in progress into cash. It's calculated by dividing your cost of sales by your average inventory or work in process. Don't worry if this sounds complicated; we're here to guide you through it.

Remember, every industry has its own way of doing things, so comparing your stock turn to others might not give you the full picture. What matters most is making your own business more efficient at turning stock into cash.

Here are some questions to get you started:

Stocking Strategy: Do you have a plan for how much inventory you should keep on hand, when to reorder, and how much to keep for emergencies?

Inventory Management Software: What tools do you use to keep track of how much stock you have?

Stock Policies: Are your rules clear about what to do with items that aren't selling quickly?

Shrinkage Costs: Do you know how much money you're losing to theft or damage?

Ordering System: Is there a clear process for deciding when to order more stock?

These steps are just the beginning. If you think your stock levels are hurting your cash flow, let us know. In our Cashflow & Profit Improvement Meeting, we'll go over the numbers together and come up with a simple plan to get your business's cash flowing smoothly. Let's turn your stock into cash, faster and smarter.

The second cause of poor cashflow - Your accounts payable process

Wed, 31 Jan 2024 14:14:00 +0930

Managing cash flow effectively is crucial for the success of any business, big or small. At Together Business, we understand the challenges that businesses face, which is why we're committed to simplifying financial concepts and offering practical advice to help you navigate your finances with ease. In this article, we'll explore the second common cause of poor cash flow and provide actionable tips to improve your cash flow management.

The second common reason for poor cash flow is how and when money is spent, particularly in dealings with suppliers. Understanding this aspect of your business can make a significant difference in your financial health.

Setting Spending Limits:

A good starting point is establishing a clear spending budget for your business. This budget should be created annually, preferably before the start of the new financial year. By setting spending limits and ensuring that authorised team members adhere to these limits, you can prevent overspending and maintain better control over your finances.

Reviewing Accounts Payable Processes:

Take a moment to review your Accounts Payable process, from the moment you place an order to when the payment is made. Documenting this process can help identify areas for improvement and streamline your payment procedures.

Checking Supplier Terms:

When was the last time you reviewed the terms of payment and prices from your suppliers? Understanding payment expectations, early payment discounts, and late payment penalties is crucial for effective cash flow management. By staying informed about your supplier terms, you can take advantage of discounts and avoid unnecessary expenses.

Comparing Supplier Prices:

Regularly comparing prices from different suppliers can help you ensure that you're getting the best value for your money. Consider not only the price but also factors such as delivery charges, payment terms, and discounts offered. This comparative analysis can inform your purchasing decisions and help you optimize your spending.

Mitigating Risks and Building Relationships:

In addition to managing cash flow, it's essential to mitigate risks such as fraud and human error. Implementing robust controls and building strong relationships with your suppliers can further safeguard your financial interests and foster long-term partnerships.

Effective cash flow management is essential for the financial health and sustainability of your business. By understanding how and when money is spent, reviewing supplier terms, and implementing best practices in accounts payable processes, you can improve your cash flow management and set your business up for success. At Together Business, we're here to support you every step of the way on your financial journey.

Schedule a Cashflow & Profit Improvement Meeting with us today to explore personalised solutions for your business.