Generally, the cost of running a website is deductible in the year you pay it, while the cost of building or buying a website is a capital expense claimed over time. The exact treatment depends on your circumstances, so check with your accountant. This is general information, not tax advice.
Usually operating expenses (deductible now)
- Hosting and website care plans
- Maintenance that keeps the site working as it is
- Software subscriptions and cloud services
- Ongoing SEO and advertising
Usually capital expenses (claimed over time)
- Designing and building a new website
- A major rebuild that adds new functions
The ATO treats software you develop or have developed for your business as in-house software. Small businesses using the simplified depreciation rules may be able to claim some capital costs sooner. See the ATO's guidance on digital product expenses.
Keep good records
- Tax invoices for every website, hosting and marketing cost
- A note of what each invoice was for: build, maintenance or ongoing services
- Your business-use percentage if the website or software is also used privately
GST
If you're registered for GST, you can usually claim the GST credit on business website costs. Exclude it from the amount you deduct.
See what a website costs and website maintenance costs.
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