Deductible Fees for Australian Businesses
As a general rule of thumb, yes, most accounting fees are deductible for income tax purposes.
That being said, the timing around when these fees can be deducted, is dependent on two things. How your business is registered for GST and Income Tax. Take for instance, if the business is running on a cash basis, the fee would be deductible when paid. If the business is running on an accrual basis it would be deductible on the date of the invoice.
Situations, where accounting fees are not deductible, do exist but are rare. The most typical scenario occurs during the acquisition of a capital asset. The cost of due diligence – in this case, legal fees – may be among those not considered deductible.
Where to go from here?
Navigating tax law can be confusing if you do not know where to start. In these circumstances, it is encouraged that you seek the help of the appropriate expert.
At Accodex we have a team of partners that specialize in the area of tax, covering a range of industries. Whatever your accounting needs, we have a Partner that will help your business get back on track.
Navigating tax law can be confusing if you do not know where to start.
Keep in mind that this is general information and should ever only serve as a guide. As such it should not be taken as specific advice.
Always remember that legislation around tax is always changing. Chances are that the laws may have been updated since the publishing of the article.
This is why it is always best to consult with your local professional. Better yet, why not contact an expert from Accodex Partners.
Written By: Chris Hooper
Chief Executive Officer