The ATO has released a public taxation ruling covering the ATO’s views on the deductibility of expenditure incurred in acquiring, developing, maintaining or modifying a website for use in the carrying on of a business.
Importantly, if the expenditure is incurred in maintaining a website, it would be considered ‘revenue’ in nature, and therefore generally deductible upfront. This would be the case where the expenditure relates to the preservation of the website, and does not:
- alter the functionality of the website
- improve the efficiency or function of the website or
- extend the useful life of the website