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ITConnexion to assist in small business digital transformation with the government tax break

Technology Investment Boost

The Government’s Technology Investment Boost reduces the cost of going digital,
supporting businesses to invest more in their digital capability. This measure will
provide tax relief of $1 billion.

More than 3.6 million small businesses with an annual turnover of less than $50
million will be able to claim a bonus 20 per cent deduction for the cost of expenses
and depreciating assets, up to $100,000 of expenditure per year.

Eligible expenditure includes items such as portable payment devices, cyber security systems and subscriptions to cloud-based services.

The boost will apply to expenditure incurred from 7:30pm (AEDT) on 29 March 2022 (Budget night) until 30 June 2023.

Small business owners will receive up to $1 billion in tax breaks for digital spending, including upgrades to cybersecurity systems or online sales platforms, as the government pushes more firms to embrace the online economy.

Under changes announced on Tuesday night, the government will allow eligible businesses to deduct $120 for every $100 they spend on services that support their digital capability, which could include spending on websites, cloud computing or portable payment devices.

Under the measure, the government said more than 3.6 million businesses with annual turnover of less than $50 million would be able to claim an additional 20 per cent deduction on costs incurred on business expenses and depreciating assets that support “digital adoption”.

The government said spending of up to $100,000 a year would be eligible for the bonus deduction, and firms would be able to claim the tax break on purchases made between now and June 30, 2023.

Treasurer Josh Frydenberg said the bonus deduction was aimed at cutting the cost of going digital and backing businesses that were “embracing the digital revolution”.

“From tonight, every hundred dollars these small businesses spend on
digital technologies like cloud computing, eInvoicing, cybersecurity and web design will see them get a $120 tax deduction,” Mr Frydenberg said.

Budget documents said businesses would be able to claim the bonus
deduction on a range of spending, including improvements to
cybersecurity systems, digital tracking for livestock, subscriptions to enhance data analytics and marketing, and a digital inventory tracking system.

Mr Frydenberg, who has also promoted a digital economy strategy, said the measures were aimed at helping small businesses become more productive and competitive.

ITConnexion can help you with your organisation Digital Transformation. Contact us to find out how we can help.

Source: smh.com.au

We can help you!

In case you’re still unsure about the process or if you need further assistance, feel free to give us a call or drop us an email. Our team of experts will be sure to offer a helping hand.

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