Website Costs in Your Business

Most small and large businesses have a website in order to reach new and existing customers with information and sometimes provide a sales platform. If you incur website development costs prior to the commencement of your business, the costs can be claimed as an income tax deduction over 5 years once business has started.

Once a business has commenced, if it is a small business (aggregated turnover less than $2 million) then the instant asset write off threshold ($20,000) can be applied to website development costs, otherwise the general small business pool depreciation rate of 30% applies.

If costs are allocated to software development pool or the simplified depreciation rules do not apply then a business may deduct 20% of the cost per year. Website costs which are considered ‘on-going maintenance’ of the site such a registration fees and hosting costs are deductible as they are incurred.