Deductions for commercial websites

February 23, 2017

Do you understand how you can claim deductions for your business website? 

The ATO has released a public taxation ruling on the deductibility of expenditure incurred in acquiring, developing, maintaining or modifying a website for use in the carrying on of a business.

Importantly, if the expenditure is incurred in maintaining a website, it would be considered ‘revenue’ in nature, and therefore generally deductible upfront. This would be the case where the expenditure relates to the preservation of the website, and does not:

  • Alter the functionality of the website;
  • Improve the efficiency or function of the website; or
  • Extend the useful life of the website.

However, if the expenditure is incurred in acquiring or developing a commercial website for a new or existing business, or even in modifying an existing website, it would generally be considered capital in nature (in which case an outright deduction cannot be claimed).

  • If you would like to check how you should be claiming your commercial website expenses, please ask your Kothes accountant.