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@HeatherSmithAU
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Hi Caroline,

I obviously can not give you tax advice – and you would need to speak with your tax accountant depending on your circumstance;

You asked:-

hi, just went to a tax seminar for newbies today and the guy couldn’t tell me how to treat startup costs for companies, being ASIC and business registration fees – would these be capital or revenue in nature?
Also if I am getting a website done up which also has a download software tool, would the costs for this also be capital or revenue?

What I typically see happen is;

FORMATION COSTS (Start – up costs) are typically treated as a NON CURRENT ASSET and depending on the size of them, written off as an expense, either in the initial year, or over several years.

They start as an asset, and are written of as an expense. I am not sure why you would think they are REVENUE? Maybe I have misunderstood your question?

WEBSITE

The development of some websites will be considered an EXPENSE but the development of other websites will be considered a NON-CURRENT ASSET and written off against expenses, theoretically over the period of life of the WEBSITE.

Again you will need to talk to your accountant about the pros and cons of doing this.

If you have a ‘download tool’ and it is not merely brochure ware website I would typically expect to see it treated as an asset.

Again – I am not sure why you are referring to REVENUE – maybe I am confused by your question. REVENUE refers to income and you have not mentioned income.

Hope this helps.