ATO: New rules for deducting small business start-up costs

From 1 July 2015, small businesses can immediately deduct certain capital expenses associated with starting up a business.

Expenses are now fully deductible in the year in which the expenditure is incurred (this was previously over five years) if it was:

• incurred in obtaining advice or services relating to the proposed structure or operation of the business (for example, advice from a lawyer or accountant)
• a payment to an Australian government agency of a fee, tax or charge incurred in relation to setting up the business.