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:
- It relates to a small business that is proposed to be carried on.
- If it is incurred from advice relating to the proposed structure / or operation of the business.
- Is a payment to an Australian agency
In the financial year that the deduction is claimed the entity:
- Is a small business, or,
- 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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