Is your new business website deductible?

Thursday 2 February 2017

A new taxation ruling from the ATO sets out the tax deductibility of expenditure incurred in acquiring, developing, maintaining or modifying a commercial website for use in carrying on a business.

Broadly, the ruling explains that acquiring or developing a commercial website for a new or existing business is considered to be a capital expense.

Unfortunately, this means it is not deductible. On the other hand, maintaining a website, including remedying software faults, is generally a revenue expense, so may be deductible.