Taxation ruling on commercial website deductibility

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


Broadly, the ruling explains that acquiring or developing ancommercial website for a new or existing business is considered to be a capitalnexpense, and is therefore not deductible. On the other hand, maintaining anwebsite, including remedying software faults, is generally a revenue expense,nso may be deductible.

Important: Clients should not act solely on the basis of the material contained in Update. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This update is issued as a helpful guide to clients and for their private information.

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