New businesses will be able to deduct start-up costs such as professional, legal and accounting services from the 2015/2016 income year.
The Federal Government announced new measures in its budget that will no doubt be welcome to new ‘start-up’ businesses. New businesses will be able to deduct the start-up costs surrounding professional, legal and accounting services as of next financial year.
This will replace the current situation, known as ‘black hole expenditure’, where some of the professional costs associated with a new start-up business are capitalised and deducted over a five year period. This measure will result in an immediate tax saving for profitable businesses.
The proposed changes will help new start-up businesses off-set the cost of seeking professional advice in respect of their new operation. This includes establishing the entity through which the business will operate, as well as any terms and conditions under which the business will be trading.
Now is also the perfect time for new start-up businesses to consider developing and protecting one of their most valuable assets – their intellectual property including the brand, products, systems, and information of the business.
Oncore Legal Solutions specialise in a variety of legal matters, including contract, commercial and corporate law. Contact the team by email at firstname.lastname@example.org or by calling 1300 654 484 to discuss how Oncore Legal Solutions may be of service to your business.