Blog & Resources

Are Start-up Expenses immediately deductible?

In most instances the simple answer is yes.

This is a common question.  When people start up a business, they will usually use a company or a trust structure.  There are always costs associated with setting up these entities such as: Accounting; Legal and Statutory Charges including stamp duty and ASIC fees.

From the 2015 /16 financial year, certain start-up expenses will be fully tax deductible in the year that they were incurred. Previously these costs had to be amortised (claimed as a tax deduction) over 5 years.

Expenditure may be fully deductible if:

  1. It relates to a small business that is proposed to be carried on.
  2. If it is incurred from advice relating to the proposed structure / or operation of the business.
  3. Is a payment to an Australian agency


In the financial year that the deduction is claimed the entity:

  1. Is a small business, or,
  2. Is not associated with a large business.

If you would like to discuss further please contact us:
 McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
 Phone +61 3 9428 1062

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