Tax Deductible Business Expenses You Might Be Overlooking in 2025
- johnry8
- Nov 17
- 2 min read
Many business owners assume they are already claiming every deduction available, but every year the ATO updates rules, thresholds and allowable expenses. Missing even a few deductions can cost your business thousands of dollars.
Understanding what you can and should claim in 2025 helps you:
Reduce your tax bill legally
Improve cash flow
Stay compliant with updated ATO expectations
Avoid red flags that trigger audits
Plan for better financial management
A common mistake we see is business owners not keeping proper records or being unaware that certain modern-day costs such as digital tools, training subscriptions or home-based work expenses are now fully deductible.
Below are the expenses most businesses overlook and tips on how to claim them properly.
1. Digital Tools and Software Subscriptions
Many businesses forget to claim digital platforms they use daily. These add up quickly and are fully deductible.
Cloud based accounting systems such as Xero or QuickBooks
CRM systems
Project management software such as Asana or Trello
Paid advertising tools
Social media schedulers
AI tools used for work
Best Practices
Keep monthly invoices or annual subscriptions saved
If you use tools for both personal and business, claim only the business portion
2. Professional Development and Training
The ATO encourages upskilling. If the training is connected to your current business or profession, the cost is deductible.
Courses, workshops, CPD programs
Seminars and industry conferences
Books, online learning programs, certifications
Dos and Dont’s
Do: Claim training that directly relates to your existing work Dont: Claim courses for a new career or future profession
3. Home Based Business Expenses for 2025
If you work from home, even partially, you may be able to claim a wide range of deductions.
Power and internet for work related use
Mobile phone usage
Office equipment and depreciation
Cleaning and repairs of your workspace
Tip From Our Firm
Many small businesses underclaim home office expenses because they are unsure how to calculate the business use portion. A simple usage log can significantly increase accuracy and compliance.
4. Motor Vehicle Expenses
Even if you do not have a dedicated business car, you may be missing vehicle deductions.
Fuel
Registration
Loan interest
Repairs and servicing
Insurance
Two Ways to Claim
Cents per km method which is simple and audit friendly
Logbook method which gives higher deductions but requires record keeping
If you regularly travel for client visits, site inspections, deliveries or supplier runs, the logbook method often has better tax savings.
5. Bad Debts Written Off
If you have issued invoices that will never be paid, these may be deductible.
How to Claim Properly
The invoice must already be included in your taxable income
You must write it off in your accounts before 30 June
You must show evidence you attempted to recover it
This is one of the most overlooked deductions, especially for service based businesses.
Want to make sure you are claiming everything you can in 2025?
Book your FREE 15 minute Discovery Call and let our team review your deductions, structure and tax strategy so you can maximise savings and stay compliant this financial year.