Borrowing Expenses Amortised
<p>This is a cost with specific Australian tax system connotations and is traditionally shown in the profit & loss account/income & expense statement of Australian Special Purpose Financial Reports.
 
To meet AASB Accounting standards, borrowing costs mean something else. See link to AASB Borrowing Costs.
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<h2 >For our Reporting Purposes - </h2>
<h2 >Borrowing expenses</h2>
<p >You can claim a deduction for borrowing expenses associated with purchasing your property, such as loan establishment fees, title search fees, and costs of preparing and filing mortgage documents. (Interest on the loan is <strong >not</strong> a borrowing expense, and can be claimed immediately.)
Borrowing expenses can be amortised over five years or the period of the loan, whatever is shorter. The amortisation commences on the date the cost is incurred.
If your total borrowing expenses are more than $100, the deduction is spread over five years or the term of the loan, whichever is less. (See the Link to the LodgeiT Borrowing expense calculator.)
If the total borrowing expenses are $100 or less, you can claim a full deduction in the income year they are incurred.</p>