can you claim business expenses without income

Ah, the dream of claiming expenses without the pesky bother of earning income! In Australia, you generally can’t claim business expenses unless you have a business that is actively earning or intending to earn income. The ATO wants to see that your business is more than just a hobby or an expensive pastime. However, if you're genuinely running a business and have started incurring expenses to get it off the ground, you may be able to claim those, even if the income hasn’t started flowing yet.

But beware: the ATO is notoriously strict about distinguishing between a hobby and a bona fide business. Keep meticulous records and be prepared to justify your claims. For more detailed guidance, consulting the ATO website or a tax professional is your best bet.