Tax and your website: What can you claim?

Michelle Jounquay • February 1, 2019

Most small businesses and independent contractors have a website these days. If you are planning to launch a new website or refreshing an existing one, it’s important to understand the tax implications. As with all things tax, it’s not always easy.

The complexity of the technology and associated services that go with running a website can make it tough to determine what you can claim upfront as a tax deduction and what you need to depreciate over time.

Capital or revenue cost?

To work out what you can and can’t claim as an immediate deduction, it’s important to understand which of your website expenses are capital or revenue costs.

A simple way to think about it is this. If the expense relates to the initial development or acquisition of the website, the ATO considers the expense capital in nature, so it can’t be claimed immediately as a deduction.

The same goes for any changes to your website that improve the business’s ability to make a profit. These expenses are also considered capital expenses and not immediately deductible.

Other examples of capital expenses include the costs incurred when migrating content from an old to a new website, or the cost of securing the right to use a domain name.

It’s important to check with us when it comes to any software you have developed in-house. For this to be immediately deductible, it must be complex and seen as significantly improving your website.

Claim revenue costs now

On the other hand, costs related to the running and usage of your website – such as operating and routine maintenance costs – are considered by the tax man to be revenue in nature.

These include periodic domain name registration fees, your monthly hosting fees and upgrading website software to appear correctly on new mobile devices, browsers and operating systems. These costs are all immediately deductible in full.

Updating your website content with new articles, graphics or advertising is also considered a maintenance expense and is immediately deductible. However, if you develop a microsite that links back to your main business website, the costs relating to this are not immediately deductible.

For a gripping read, you can always check out the details in the ATO’s Taxation Ruling TR 2016/3. i  This lengthy document provides lots of examples of different types of website expenses and whether the tax man considers them capital or revenue in nature.

Reprieve for small business

But before you start combing through all your website expenses to try and work out whether you can claim them upfront, it’s worth noting there is a reprieve for smaller operations.

If your business qualifies as a Small Business Entity, the distinction between whether your website expenses are capital or revenue in nature may not be as relevant to your tax outcome. Under the government’s popular $20,000 instant asset write-off concession, the business portion of website capital expenses can be written off immediately, rather than depreciated over time, if they are less than this amount. ii

To qualify to use the simplified depreciation rules and claim an immediate deduction, your turnover must be under $10 million and the capital expense for your website must have been first used or installed ready for use during the income year you are claiming the expense.

This means if you are a small business and do not have large website costs, you can avoid the problem of working out what is and is not deductible.

It’s worth noting, however, that the $20,000 immediate write-off concession currently expires on 30 June 2019, although it may be extended again in the next Federal Budget.

If it is not extended, the concession drops to $1,000 and all your website expenses over this amount will need to be classified as capital or running costs. You will then need to depreciate capital expenses over time.

Call us today to find out more about how to correctly claim expenses relating to your business website or the instant asset write-off concession.

Adrian Rasmussen retires after decades supporting Regional Queensland

By BMO • June 30, 2026
After an incredible career dedicated to supporting regional businesses, farming families and rural communities, BMO Business Centre Partner Adrian Rasmussen will officially retire from the partnership effective 30 June 2026. For many across the Western Downs and beyond, Adrian has been far more than an accountant or advisor. Over decades in business, he has built trusted relationships grounded in honesty, loyalty and a genuine understanding of regional life and the people who live it. Adrian’s connection to the country and agriculture has always been at the heart of who he is. He has worked alongside generations of farming families and business owners through seasons of growth, challenge and change, becoming a steady and respected presence for clients, colleagues and the wider community alike. Reflecting on his time at BMO, Adrian said the relationships formed throughout his career have been among the most rewarding parts of the journey. “It has been a privilege to work with so many wonderful people over the years; not only clients, but colleagues and communities who have become lifelong friends,” Adrian said. “Regional communities are built on relationships, trust and supporting one another, and I’m incredibly grateful to have been part of that throughout my career.” BMO Business Centre Managing Partners Kelvin Tyler and Michelle McVeigh said Adrian’s contribution to both the business and the region would leave a lasting legacy. “Adrian has played an incredibly important role in shaping BMO into the business it is today,” they said. “His care for clients, commitment to regional communities and calm, practical approach have earned enormous respect across our industry and the communities we serve. While we will certainly miss having him in the office, we are excited for Adrian and his family as they enter this next chapter.” While stepping away from the partnership, Adrian is looking forward to spending more time with family, on the farm and enjoying a well-earned change of pace after many years dedicated to supporting others. Everyone at BMO Business Centre extends their sincere thanks to Adrian for his years of service, friendship and leadership, and wishes Adrian and his family all the very best for the future.

Your 30 June superannuation checklist

By Nikki Ashurst • June 4, 2026
Five easy ways to get more into your super fund before the end of the financial year.