Website tax deduction in Australia: what you can actually claim before EOFY 2026
A website tax deduction is real, but it does not always work the way people expect. In most cases the cost of building a website is treated as a capital expense, so it is claimed over time rather than all at once, while the running costs (hosting, domain renewals, your care plan) are deducted in the year you pay them. With 30 June 2026 a couple of weeks away, this is the question we get asked most by small business owners in June, so here is the plain version of what you can claim, what you cannot, and why timing matters.
Quick disclaimer first: we build websites, we are not tax agents, so treat this as a starting point and check your own numbers with your accountant or the ATO.
Build costs are usually capital and claimed over time. Hosting and care are running costs you claim this year.
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Is a website tax deductible in Australia?
Yes, if the site is used to earn income, but a website tax deduction works differently depending on the type of cost. The ATO treats the money you spend acquiring or developing a website as a capital expense, the same bucket as in-house software. That means the build itself usually declines in value over several years rather than being a single instant deduction. Small businesses get more flexibility here, which is where the end of financial year deadline starts to matter. If you are weighing up a new site, our guide to what a website costs in Australia gives you realistic figures to plan around before you talk to your accountant.
- Claim this year (running costs): web hosting, domain renewals, your SSL and licences, and a website care plan that keeps the site ticking over.
- Claim this year (subscriptions): software subscription fees like security, booking or accounting tools billed monthly.
- Claim over time (capital): the cost of building or substantially rebuilding the website itself.
- Maybe claim sooner: a build under $20,000 if you are a small business using the simplified depreciation rules and the site is live by 30 June.
- Decide if the project is a new build, a rebuild, or just maintenance.
- Get the work scoped and, if you want it in this year’s return, live before 30 June.
- Keep every tax invoice and split out hosting and care from the build cost.
- Hand the lot to your accountant and ask how to treat the build.
For the small business path, the numbers come straight from the ATO. The instant asset write-off lets eligible businesses with aggregated turnover under $10 million immediately deduct an eligible asset costing less than $20,000, as long as it is first used or installed ready for use between 1 July 2023 and 30 June 2026. A website can fall inside that if it is treated as a depreciating asset under the simplified depreciation rules. It is not automatic, and your accountant will know whether your situation fits, but it is the reason June is the month to get a build over the line rather than letting it drift into July.
Paying a deposit in June does not lock in the deduction. The ATO looks at when the site is live, not when you paid.
MyWebs Agency
What you can claim on a new website build
Your website tax deduction on a build is capital by default, so it is written down over a few years as in-house software. If you have started a software development pool, those costs sit in the pool and come off over five years. The exception that matters in June is the small business one: a build under the $20,000 threshold may be claimable in full this year if the site is live by 30 June and you use the simplified depreciation rules. Thinking about a fresh site or a rescue job? Here is how we build or rebuild a WordPress site so it is done properly and live on time.
Hosting, care plans and the costs you claim every year
This is the easy part. The ATO’s own list of deductions for digital product expenses counts the cost of running a website, including maintenance that preserves its character, as an operating expense you claim in the year you incur it. So your hosting, your domain renewals, your care plan and your monthly software subscriptions are all normal running-cost deductions. Same goes for your ongoing SEO retainer. Keep the invoices, claim them this year, move on.
Website tax deduction timing: why 30 June 2026 matters
The whole website tax deduction question hinges on one date. For anything you want in this financial year, the work has to be done and the asset has to be in use, not just ordered or paid for. The ATO’s test for the instant asset write-off is that the asset is “first used or installed ready for use” by 30 June. For a website, that means live and doing its job, not a deposit on a project that finishes in August.
We see this catch people out every year: they pay a deposit on 28 June, assume it counts, and it does not. If you want a build inside the 2025-26 year, the practical deadline to start is now, not the last week of June.
Website tax deduction at a glance
| Expense | Tax treatment | When you usually claim |
|---|---|---|
| New website build or major rebuild | Capital (in-house software) | Over time, or sooner if under $20,000 and live by 30 June |
| Web hosting | Operating expense | Year you incur it |
| Domain registration and renewal | Operating expense | Over the period it covers |
| Website care plan and maintenance | Operating expense | Year you incur it |
| SEO retainer and software subscriptions | Operating expense | Year you incur it |
| Online store rebuild over $20,000 | Capital (small business pool) | Depreciated over time |
One more thing worth saying plainly: a deduction is not free money. Claiming a website tax deduction reduces your taxable income, it does not refund the full cost of the site. The right reason to build or fix a website in June is that it earns you more leads and sales, with the tax treatment as a sensible bonus on top. If the site is slow, broken or losing enquiries, that is the real cost, and our EOFY website checklist walks through what to tidy up before the new year.
Frequently asked questions
Is a website tax deductible in Australia?
A website used to earn income is deductible, but a website tax deduction usually splits in two. The build is a capital expense claimed over time as in-house software, while hosting, domain renewals and maintenance are running costs you claim in the year you pay them. Small businesses may be able to claim a build sooner under the simplified depreciation rules.
Can I claim my new website under the instant asset write-off before 30 June 2026?
Possibly. You generally need aggregated turnover under $10 million, a cost under $20,000, to be using the simplified depreciation rules, and the site live (installed ready for use) by 30 June 2026. This website tax deduction is not automatic for every business, so confirm your eligibility with your accountant.
Are website hosting and care plans tax deductible?
Yes. Hosting, domain renewals and a website care plan are normally operating expenses, so you claim them in the year you incur them. Keep the tax invoices and apportion out any private use.
Does paying a deposit before 30 June count?
Generally no. The ATO looks at when the website is first used or installed ready for use, not when you paid. A deposit on a half-finished build usually will not qualify for this year, which is why starting early beats a last-minute rush.
Is this tax advice?
No. We build and look after websites, we do not do tax returns. Use this as a plain-English starting point and confirm your own position with a registered tax agent or the ATO.
If a new site, a rebuild or a long-overdue fix has been sitting on your list, June is a sensible time to get it moving. Book a free website audit with our team and we will tell you honestly what your site needs, what it would cost, and whether it can realistically be live before 30 June. No jargon, no pressure, just a clear plan, and your accountant can confirm how the website tax deduction applies to your books.