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  • #967226
    CarolineHughes
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    hi all
    stumbled across the following tax ruling:

    TR 2001/6: Taxation Ruling: Income tax: deductibility of
    commercial website expenditure

    Haven’t read it yet but is this the right starting point for working out what I can deduct for my website?

    Also if I am getting a website & a software program created by the same people is there a good way of splitting the invoice for the best outcome?

    Thanks
    Caroline

    #1024711
    Sophie de Somerville
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    • Total posts: 4
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    Hi Caroline,

    That tax ruling has been withdrawn because the law and industry practice have changed significantly.

    The ATO website says:

    ALLOWABLE DEDUCTIONS
    You can claim a deduction for most expenses you incur in carrying on your business and you can generally claim:
    ■ an immediate deduction for expenses that are necessary for the everyday running of your business
    ■ a deduction over a number of years (depreciation) for other expenses; for example, capital assets such as machinery, tools or computers.

    For the invoice, ask the supplier to separate the cost of each item.

    I hope this helps!

    #1024712
    Chromatix
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    • Total posts: 85
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    So pretty much there are no benefits we can claim for websites…

    I didn’t even know the old one existed

    #1024713
    TimFairweather
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    ChromatixIrwin, post: 29390 wrote:
    So pretty much there are no benefits we can claim for websites…

    I didn’t even know the old one existed

    Loads of benefits:

    server hosting – expense
    internet access – expense
    enewsletter campaigns – expense
    some graphic design – expense

    These should all be deductible depending on the specific details of them.

    Updating the website becomes tricky because the website is an asset – for example when you paint the bathroom in your office, your accountant is trying to work out whether the asset – your office bathroom – has improved (capital, not deductible) or stayed the same (expense and deductible)

    In the same way your website may be overhauled and improved – capital not deductible – or may just be getting ongoing maintenance – expense and deductible.

    Ask your friendly accountant to explain section s8-1 and Capital Works to you. It will be much more fun than having to read it yourself.

    #1024714
    Burgo
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    Surely painting the bathroom is a maintenance expense.
    I claim everything as a business deduction especially any thing to do with website

    #1024715
    TimFairweather
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    Burgo, post: 29920 wrote:
    Surely painting the bathroom is a maintenance expense.
    I claim everything as a business deduction especially any thing to do with website

    Depends what your bathroom looked like before :)

    #1024716
    Sophie de Somerville
    Member
    • Total posts: 4
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    ha and how expensive the paint is… bring on the paint with the gold flecks in it… surely that’s a business expense?

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