As the end of the financial year fast approaches, business owner’s thoughts turn to tax. So how should you treat your website and online marketing investment to best suit your tax circumstances, particularly with the recent changes to instant asset write offs?
And most importantly…
CAN YOU CLAIM A WEBSITE ON TAX IN AUSTRALIA?
Yes, you can claim a website on tax in 2024! The Australian Taxation Office (ATO) allows businesses to claim a deduction for the costs of acquiring and maintaining business websites.
The federal government announced that for the 2022-23 income years, a business can claim in its tax return a deduction for the business portion of the cost of a website.
Temporary full expensing supports businesses and encourages investment, as eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year it is first used or installed ready for use for a taxable purpose.
We’re web design experts, not tax specialists, so feel free to read the full disclosure on the ATO website
HOW CAN I CLAIM WEBSITE COSTS ON TAX IN 2024?
To claim a deduction for your website costs, you will need to keep records of all expenses incurred in relation to the site, such as:
- Website design and development costs
- Hosting fees
- Domain name registration fees
- Maintenance and updates
When it comes time to lodge your tax return, simply include these expenses under ‘Other business expenses’ on your Schedule C. This will ensure that your deductions are correctly allocated against your overall income.
IS MY BUSINESS ELIGIBLE TO CLAIM WEBSITE COSTS TAX IN 2024?
You may be eligible for temporary full expensing if you are one of the following:
- a business with an aggregated turnover of less than $5 billion
- a corporate tax entity that meets the alternative income test.
So how can business in Warrnambool take advantage of the new scheme? Perhaps by investing in a brand new website, which is of course, a tax deductible business asset.
HELP! I NEED A NEW WEBSITE
YOUR WEBSITE IS A TAX DEDUCTIBLE ASSET!
No doubt your website and online presence is an asset to your business, hopefully delivering a steady stream of leads and business opportunities, all the while establishing your brand as market leader in your chosen industry (if not, give WestVic Web a call!)
But did you know your website is also a legitimate business asset for tax purposes?
This means that the cost of acquiring and maintaining your website can be claimable as a deduction against your overall income in your annual tax return.
so i can claim the full cost of A website ON TAX?
The good news is, if your website was developed and paid for in FY23, you can claim a full deduction for the business portion of the cost in this financial year.
All aspects of your website marketing strategy are eligible tax deductions. Everything from your domain name, website hosting, the design and development of a new website, even ongoing marketing via Search Engine Optimisation (SEO) and Social Media Marketing can all be claimed as a business asset on your 2022 tax return.
This is fantastic news for small businesses across Australia who have been doing it tough over the last few years. So if you’ve been thinking about getting a new website or giving your existing site a facelift, now is definitely the time to do it!
For more information on how to claim a website on tax, head to the ATO website or speak to your accountant. And if you need help with your website design or online marketing, our team at WestVic Web are always happy to help.
Before tax time arrives on June 30 , why not consider upgrading your online presence with a state-of-the-art responsive website that delivers real value and return on investment, whilst also reducing your taxable income? It truly is a win-win for businesses not just in Warrnambool, but all across Australia.
This is merely an example of WestVic Web’s interpretation of existing tax regulations, we recommend all readers of this article speak with a licensed tax professional before submitting a tax return.