Question:
I have recently moved from the city to the country and I am planning to start a new business there. I have already registered my business name, so can I claim on my tax return the cost of the move or for the purchase of my computer?

Answer:
I don’t believe so. You have not started your business nor have you moved your business so it is not a business expense, merely a personal one. Plus, capital equipment, such as a computer, cannot be claimed as a deduction if it has been purchased to start a company, only if it is purchased as part of a business’ ongoing operations/maintenance. You may, however, be able to “depreciate” your computer over time, depending on what it is used for.

I suggest you contact the ATO directly if you wish to confirm this or talk with your accountant. We don’t advise anyone starting a business to do so without first consulting with an accountant as an accountant should become the single most important “asset” of your business and can mean the difference between your business succeeding or failing.

Filed under: Starting a Business, Accounting & Tax
This page was added on 29 January 2002, last updated on 29 January 2002.