Claiming your business website on tax involves deducting eligible expenses like domain registration, hosting, design, software tools, and digital marketing from your taxable income, as per ATO guidelines. These costs may be treated as either operating or capital expenses depending on their purpose and longevity. This guide helps Australian businesses identify claimable website costs, categorise them correctly, and leverage schemes like the Instant Asset Write-Off to boost EOFY returns and digital growth.

As the End of the Financial Year (EOFY) approaches on June 30th, Australian small business owners are wrapping up their financial reporting.

Once upon a time, a website was merely an electronic brochure; nowadays, it has evolved into a significant business asset that establishes customer trust and perception, influencing buying decisions. 

Research indicates that customers are ready to pay up to 22% more for products offered by a company with a reliable online presence. The good news? Several expenses related to your website can be claimed as tax deductions.

Understanding what qualifies and how to claim your business website on tax correctly can go a long way toward maximising your tax return while staying within ATO guidelines.

What Website Costs Can You Claim?

Your business website involves various components, each with its tax implications.

Let’s look at the common costs you might incur:

1. Web Hosting and Domain Registration 

What They Are:

Web hosting supplies the digital infrastructure that stores and delivers your website content while your domain name serves as its distinctive web address. These essential services operate on subscription models – hosting maintains your server space while domain registration preserves your exclusive URL rights.

How to Claim: 

The good news is that hosting and domain fees are generally fully tax-deductible in the same financial year they are incurred. As these are ongoing operational expenses essential for maintaining your business’s online presence, the ATO classifies them as allowable deductions. Ensure you retain receipts or invoices as proof of payment for potential verification.

2. Website Design and Development

What They Are:

This includes everything involved in building your website – the layout, visuals, content organisation, and technical coding. It also covers major redesigns that significantly change your site’s look or functionality. 

How to Claim:

Your deduction method depends on the type of work done: 

  • Operating Expense (Immediate Deduction) 
  • Claim minor updates, content refreshes, and small fixes immediately since they are considered routine business costs.
  • Capital Expense (Deducted Over Time).
  • For major upgrades or a completely new website (lasting over a year), the ATO treats these as capital expenses. Spread the deduction across multiple years. 

3.  E-commerce Platform Fees

Fees for services like Shopify, WooCommerce, or BigCommerce that power your online store are typically tax-deductible.  

4. Business Software & Plugins

Business-specific tools such as booking systems, CRM integrations, SEO plugins, or security software can usually be claimed if used exclusively for your business.

5. Digital Marketing Costs

All your website promotion expenses qualify, including:  

  • Paid ads (Google, social media) 
  • SEO services 
  • Email marketing platforms 
  • Traffic-driving content creation  

6. Ongoing Maintenance & Support

Regular support contracts with developers or agencies for:  

  • Technical assistance  
  • Security monitoring  
  • General upkeep  
Also Read: The Ultimate Guide to Digital Tax Deductions for Aussie Businesses in 2025

Maximising Tax Benefits with Instant Asset Write-Off for Digital Investments  

Under the Instant Asset Write-Off scheme, digital prosperity means tax benefits, so businesses investing in this area can gain tax advantages. For the 2025 financial year, companies can currently deduct immediately the entire cost of any eligible asset below $20,000 (per item) in the year it is purchased. 

Applicable website-related assets may include:

  • Major software purchases
  • Custom development (if classified as software)
  • Premium tools or plugins

Note:

  • Each item must fall under the $20,000 limit.
  • The asset must first be used (or installed ready for use) within the same financial year.
  • Eligibility depends on your turnover and business structure.
Pro Tip: Intangible assets, such as software, may be treated differently for tax purposes, depending on their categorisation. Avoid costly missteps and ensure your claims are accurate by first discussing any major digital investment with your accountant.

Common Pitfalls to Avoid

If you plan to claim your business website on tax, it’s essential to avoid common mistakes and keep thorough, organised documentation to ensure your deductions are approved:

  • Claiming Personal-Use Expenses: Do not claim expenses for any portion of your website used purely for personal purposes. This can be a personal blog unrelated to your business. Only the business-related portion is deductible.
  • Poor Record-Keeping: You should have supporting documents, such as relevant invoices and records, to ensure the ATO does not disallow your claims if they decide to audit you.
  • Misclassifying Expenses: Misclassifying a capital cost as an immediate operating cost can lead to inconsistencies. Eliminate the guesswork by consulting competent experts.
Also Read: The Ultimate Guide to Small Business Tax Offset in Australia: What It Is and How It Works

To Wrap Up

While this guide provides useful general information, tax laws are nuanced, and each business situation is unique.

For tailored advice, especially for larger website builds or digital strategies, speak with a qualified accountant or tax advisor.

Carefully assessing your website-related costs and following ATO protocols allows Australian small businesses to effectively convert their essential digital investments into strategic tax benefits this EOFY.  

For businesses looking to establish or enhance their online presence in a tax-efficient manner, Crazy Domains provides cost-effective web solutions that align with your financial planning. Connect with us to discover how we can support your digital growth today!