Small businesses in Australia will be able to deduct an additional 20% of the cost incurred on business expenses and depreciating assets that support their digital adoption, such as website design, portable payment devices, cyber security systems and subscriptions to cloud based services.
The Small Business Technology Investment Boost will help Australian small businesses invest in the technology they need to compete in the digital economy.
Who Can Benefit From the Small Business Technology Investment Boost?
The great news is that small businesses with a turnover of less than $50 million are eligible for the Small Business Technology Investment Boost.
Small businesses with a turnover of less than $50 million are able to claim an additional 20% deduction to support digital adaption and uptake in their businesses from the 29th of March 2022 (budget night) until the 30th of June 2023.
Simply put, you can now claim 120% of any expenses relating to the digital transformation of your business; as defined by the 2022/2023 budget. This means, that for every $100 you spend on the digital transformation of your business (such as a new website), you can claim a $120 deduction.
Why Should I Take Advantage of the Small Business Technology Investment Boost?
The Australian Government views digital transformation, such as the development of a new website, as integral for businesses growth. It is an important part of their economic strategy to ensure that businesses are able to keep up with the ever-changing digital landscape. Small businesses in particular can benefit from this investment, as they often have limited resources and are not always able to keep up with the latest technology.
There are many reasons why you should take advantage of the Small Business Technology Investment Boost. Here are just a few:
You will be able to stay ahead of your competition.
By investing in new technology, you will be able to stay ahead of your competitors who have not yet made the investment. This will give you a competitive advantage and help you grow your business.
You will be able to improve your customer experience.
By investing in new technology, you will be able to improve your customer service by providing them with a better user experience on your website. This will help you to retain customers and attract new ones.
You will be able to save money.
By investing in new technology, you will be able to save money in the long run as you will be able to automate processes and tasks. This will help you to improve your bottom line. The additional 20% deduction you can make means that investing in a new website or digital technologies is a no-brainer in this financial year.
Your revenue will grow.
Whether it’s a glossy website, or a digital marketing campaign to get in front of your customers, digital transformation is paramount to the future success of your business. There is no doubt that a well-equipped, digitally enhanced business is the key to success in 2022 and beyond.
We’re Here To Help
Hopefully we’ve given you some insight into this much needed Small Business Technology Investment Boost released by the Australian Government. As Australia’s leading digital agency, specialising in website design and digital marketing, we welcome this budget announcement with open arms.
More than ever, it is paramount for businesses to invest in their digital technologies and this investment boost is much needed in the Australian business community. Our team services clients Australia-wide and we’d love to help you maximise this budget allowance; while helping evolve your business in the digital space through website design and digital marketing.
For more information on this budget measure, please visit the Australian Tax Office website.
