Tax Planning Strategy 154 | Eligible Start-Up Costs

Tax Planning Strategy 154 | Eligible Start-Up Costs

startup costs tax

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 meet one or more of the following:

  • 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). 

The professional advice or services can be in relation to how the business may be best structured, the setting up of legal arrangements or business systems for the structure, due diligence (where an existing business is being purchased), or the development of a business plan. 

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