The 2022-2023 federal budget was a bonanza of spending. An election budget the likes we have not seen for a very long time. So what’s in it for business?

Here is an explanation of the Small Business Technology Investment Boost and how it can benefit your business.

What is the Small Business Technology Investment Boost?

This boost offers a tax deduction for small businesses with an annual turnover of less the $50 million. This tax deduction adds an additional 20% on top of the standard deduction for the cost of expenses supporting the uptake of digital technology. In other words you will be able to claim $1.20 for every $1.00 spent on digital technology for you business.

What does it include?

The boost applies to the following:

• Web Design and updates
• Online sales platforms
• Cloud computing services and subscriptions
• Portable payment devices

When did it start?

The boost applies to expenditure incurred from 7.30PM AEST on 29/03/2022 until 30/06/2023.

How does it work

For eligible expenditure that was incurred between 7:30 pm AEDT 29 March 2022 until 30 June 2022 you can:

• claim the expenditure as usual in your 2021–22 tax return, and then
• claim the additional 20% bonus deduction for this period in your 2022–23 tax return.

For eligible expenditure incurred from 1 July 2022 until 30 June 2023:

• you can deduct the entire 120% in your 2022–23 tax return.

What else do I need to know about the Small Business Technology Investment Boost

• The maximum you can claim is for expenditure up to $100,000 which equates to up to $20,000 in deductions each financial year.

Has it been approved?

Yes. The Bill was passed through the Senate on Wednesday 22nd June 2023.

The above information is a guide only. Please seek the advice of your accountant or business advisor to confirm what your business is eligible for.

How can we help you with the Boost?

Encompass Marketing offers web design and hosting as well as other digital marketing activities. To find out what we can do for you in the digital space, please contact us.

References

https://www.ato.gov.au/General/New-legislation/In-detail/Direct-taxes/Income-tax-for-businesses/Small-Business-Technology-Investment-Boost-and-Small-Business-Skills-and-Training-Boost/