Small Business Tax Dictionary

You didn't get into business to become a tax expert. So use our helpful guide to understand all the terminology instead

Running Expenses

Running expenses are the costs associated with using a specific area within a home for business purposes. These expenses may include electricity, heating, phone bills, and internet charges. In Australia, running expenses can be deductible if a part of the home is used exclusively and regularly for business. The deduction can be calculated using a fixed rate per hour or an actual expense method, where the actual costs are apportioned between personal and business use. Proper documentation and understanding of Australian tax regulations are essential to claim running expenses accurately and enjoy the associated tax benefits.