The Small Business Technology Investment Boost is a tax incentive program that provides small businesses with an aggregated annual turnover of less than $50 million and an additional 20% tax deduction to support their digital operations and digitize their operations.
It was introduced by the Australian government to provide financial support to small businesses seeking to invest in technology to improve their operations and productivity.
The boost applies to eligible expenditures incurred between 7:30 pm AEDT on 29 March 2022 and 30 June 2023.
- The maximum amount of expenditure that can be claimed is $100,000 per year per business.
- The program has a funding pool of $1.2 billion and is available for up to 60,000 eligible businesses.
Eligible expenditure may include, but is not limited to, business expenditure on:
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 digitizing operations, such as advice about digital tools to support business continuity and growth.
Cybersecurity – cybersecurity systems, backup management, and monitoring services.
Please note that where the expense is partly for private purposes, the bonus deduction can only be applied to the business-related portion. If your business is registered for GST and the expenditure is not GST-free, the bonus deduction is calculated on the GST-exclusive amount plus any GST you cannot claim as a GST credit incurred in carrying on your business.
It’s important to note that you can’t claim salary or wages, capital works costs, or financing costs as part of the Small Business Technology investment boost.
Like to know more? Reach out to see whether your business is eligible. Call one of our team to find out more on 07 5494 9173.
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