Engage Method to Build Your New Website and Claim the Cost as a Tax Deduction Immediately!
The Good News
Are you a small businesses entity with an aggregated turnover of less than $10M? You are likely to be entitled to an immediate deduction for the cost of developing a website. Read the details below as to how you can claim tax back on your website and web services this tax year.
Essentially, if your business is eligible to utilise the Small Business Capital Expense rules and the website being built costs less than $20,000, the cost is fully deductible for tax once the asset is first used or installed, ready for use.
Get Method to build your website by 30 June 2022 then you can claim the full expense in this tax year.
The Boring Details
Expenditure to build a website is broadly capital in nature and accordingly can only be expensed by claiming a Capital Allowance (Depreciation Expense) for the asset.
Australian Tax Office Ruling TR 2016/3, sets out their approach in respect of the deductibility of costs incurred in acquiring, developing, maintaining, or modifying a business website.
In general, some website costs are recognised as ‘Revenue’ expenses and can be deducted immediately such as monthly licence or hosting charges, charges relating to minor content updates or minimal functional enhancements. Most other website costs to create and build the website are ‘Capital’ in nature and need to be put on your balance sheet as an asset and depreciated over time.
Don’t Delay – Time is Ticking Toward Year End
Get in touch with Method today to get your new website build underway.
We will construct for you, an attractive, functional and highly secure website.
Check with your accountant if you are eligible for an immediate write-off of your website capital expenditure.
Disclaimer – We provide the above information to raise businesses’ awareness of the Australian Government’s tax provisions enabling immediate write-off of capital expenditure. All entities should ensure their eligibility for these tax incentives prior to relying upon these provisions and the information in this article.
We recommend businesses seek appropriate advice concerning their tax status before acting upon the information above.
Method and its officers will not accept liability for the consequences of any actions taken by any entity relying on the information herein.