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

And

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

 www.mcnamaraandcompany.com.au/contact-us

 Phone +61 3 9428 1062

 Email [email protected]

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