This Draft Ruling, issued on Wed 6.4.2016, sets out the deductibility of expenditure incurred in acquiring, developing, maintaining, or modifying a website for use in carry on a business. It covers expenditure in acquiring, developing, maintaining and modifying a website. The Draft also covers the deductibility of content migration and social media accounts. Generally, it states that the expenditure incurred on a commercial website may be deductible under s 8-1 if it is of a revenue nature. Otherwise, according to the Draft, the expenditure may be classed as “in-house software” and deductible under the capital allowances regime.

DATE OF EFFECT: When the final Ruling is issued, it is proposed to apply both before and after its date of issue.

COMMENTS are due by 20 May 2016. ATO contact: John Wynter – Tel: (08) 8208 1805; Fax: (08) 7422 2202; Email:

TR 2016/D1  [LTN 64, 6/4/16]