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Sub-trusts ‘redundant’ under final Div 7A ruling
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ATO adds indebted sole traders to credit referrals
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State and Federal Covid support --- Aug 2022
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Census 2021 Data
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Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
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Inflation will force a third of businesses to raise prices
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Year-end tax planning
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World GDP Ranking (1960~2025)
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100A ruling ‘turns tax avoidance logic on its head’
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Company directors must register - all you need to know
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Largest cities in the world 1500 to 2100
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Last chance to claim the loss carry-back
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Changes to recovery loan scheme for small and medium enterprises
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About the cash flow forecasting template
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Quarter 4 of, 2017 archive
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SMSFs warned on ‘ticking time bomb’ with outdated deeds
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Taxation ruling on commercial website deductibility
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68% of SMEs ‘significantly stressed,’ 85% rely on accountants
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Statutory wills are underutilised in estate planning
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Small business slips on lodgement deadlines
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300,000 SMEs utilising $20K write-off, says ATO
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‘A bad thing times 10’: ATO set for new SMSF blitz
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Capital Gains and Renounceable Rights
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Paperwork bungles lead to $38k in payments
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Australian Dietary Guidelines and healthy eating chart (PDF)
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Former director liable for company’s unpaid tax liabilities
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Super for housing measures enter Senate
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No Special Circumstances to allow Excess Super Contributions
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Housing tax measures progress to Parliament
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AirBnb – wrong tax outcome?
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Are young investors wasting their youth?
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ATO sending 'more letters than ever' on income tax errors
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Powerful Budgeting, cash flow and Super Tools available on our site.
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Property, unit trusts in ATO's sights
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Australian Dietary Guidelines and healthy eating chart (PDF)
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Major Bank Levy Passed
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NSW tops list as ATO reveals billions in lost super
Taxation ruling on commercial website deductibility

An unfavourable opinion from the Australian Taxation Office sets out the tax deductibility of expenditure incurred in acquiring, developing, maintaining or modifying a commercial website for use in carrying on a business.

         

 

Broadly, the ruling explains that acquiring or developing a commercial website for a new or existing business is considered to be a capital expense, and is therefore not deductible.  “Developing” could include internal labour costs.  On the other hand, maintaining a website, including annual licence fees, remedying software faults, is generally a revenue expense, so may be deductible.

If you have a website and have incurred cost to enhance it, you need to carefully analyse all elements.

If there is new functionality or modification, even if piecemeal or incremental, this is likely to be capital.

Creating a presence on social media is deductible where the cost is trivial.

Unfortunately, this opinion creates many shades of grey to the characteristics of website costs beyond the knowledge of most small business people.

 

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