There is still time before June 30 to complete your small business projects before the next financial year. But to get the deduction on your new website, you will need to get your skates on…
Since July 2015 the tax laws changed regarding small business and the ability to claim instant tax deductions for each capital item purchased up to what is now $30,000. This has been extended until 30 June 2020.
Expenditure incurred in acquiring or developing a commercial website for a new or existing business is classed as capital expenditure, so this means is there is still time to upgrade your digital shop front and claim it back in July!
Of course, a website isn’t going to cost you $30k, our websites start at $1,200 + GST, so you will have plenty left over to upgrade other areas of your business to!
A bit more on how it works…
Website Capital Costs
Capital expenses will generally be deductible by instalments over more than one tax year (i.e. as depreciation). The amount claimable in each year will depend on the nature of the cost, and when it is incurred.
Broadly, there are three possible types of capital expense:
- Website setup costs incurred before a business starts.
- In-house web development costs.
- Other capital costs.
Small businesses: A $20,000 threshold for accelerated small business depreciation claims has been increased to $30,000 on an asset-by-asset basis and extended until 30 June 2020 under proposals announced in January 2019 and expanded upon in the Budget 2019 announcements. The Treasury Laws Amendment (Increasing and Extending the Instant Asset Write-Off) Bill 2019 has been approved by the parliament.
So, don’t sit back and wait! Get in touch with your accountant to confirm if your project is eligible and talk to your web developer to finish projects that you can get an instant depreciation on.
Small business ATO depreciation visit >> https://atotaxrates.info/tax-deductions/ato-depreciation/#SmallBusiness
Website Tax Deductions visit >> https://atotaxrates.info/businesses/website-tax-deduction/
Capital Assets and Expenses >> https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/Capital-assets-and-expenses/
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