Small business technology investment boost

In 2022, the Government announced it will support small businesses with a technology investment boost.

This support means that businesses with an aggregated annual turnover of less than $50 million are able to deduct an additional 20% on their business technology investment.

To be eligible for this deduction, the expenses need to have been incurred on items which assist the business to “digitise” its operations. This includes expenditure incurred on a depreciating asset. It applies to items such as portable payment devices, cyber security systems or cloud-based software.

This support is available for purchases/expenses made in the period of 29 March 2022 to 30 June 2023 and there is a cap of $100,000 on claimable expenses per income year. You can receive a maximum bonus deduction of $20,000 per income year.

Eligible technology investment items include:

• digital enabling items – computer and telecommunications hardware and equipment, software, internet costs, systems and services that form and facilitate the use of computer networks
• digital media and marketing – audio and visual content that can be created, accessed, stored or viewed on digital devices, including web page design
• e-commerce – goods or services supporting digitally ordered or platform-enabled online transactions, portable payment devices, digital inventory management, subscriptions to cloud-based services, and advice on digital operations or digitising operations, such as advice about digital tools to support business continuity and growth
• cyber security – cyber security systems, backup management and monitoring services.

There is also a skills and training boost available for small businesses.

If you would like further information or advice on the small business technology investment boost, please visit the ATO website or feel free to contact us.