Tax Strategy: Eligible Start-Up Costs

Eligible Startup CostsBusiness start-ups incur many costs in the establishment phase and whether you’re starting or buying a business, you can deduct eligible start-up costs .

From 1st July 2015 eligible start-up costs can be fully deducted in the year they were incurred if they relate to setting up a proposed small business and are either:

  • Incurred in obtaining advice or services (from lawyers, accountants or business advisors) relating to the proposed structure or the proposed operation of the business.
  • A payment to an Australian government agency of a fee, tax or charge incurred in relation to setting up a business or establishing its operating structure. E.g. ASIC fee for forming a company.
  • Stamp duty payable on transferring assets to the entity which is intended to carry on the proposed business (e.g. cars, property, etc.).
  • Costs associated with raising capital (debt or equity) for the operation of the proposed business (including for example costs incurred in accessing crowd-sourced equity funding).

Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.