On 29 March 2022, the Treasurer, Josh Frydenberg, delivered the Federal Budget for 2022-23. And it’s good news for small businesses when it comes to going digital.
There were some other winners in the budget, too. With petrol prices mushrooming and the cost of living growing with it, we were awarded some relief to the hip-pocket: cost-of-living payments, fuel excise cuts, and lower taxes for individuals. And cybersecurity also got a boost with a $9.9 billion injection into Australia’s intelligence and cyber capacities.
But we’re a small technology business, so we should probably focus on the small-business wins for technology in 2022. Let’s talk about digitisation.
What does this have to do with the 2022 Federal Budget? Technology Investment Boost
In this year’s budget, the Government announced $1 billion of funding to help small businesses, like yours, take their operations into the digital world. We don’t usually get excited by speeches by politicians, but when we heard digitisation, our ears pricked up at the sound.
How does it all work?
We’re glad you asked. Unfortunately, the Government won’t be throwing stacks of $1 coins at you while you work. (We’d love to see that.)
Instead, you’ll get a bonus 20% tax deduction on the cost incurred on business expenses and depreciating assets that support your digital adoption. This could mean new laptops, a flashy new website, or even cybersecurity and cloud technology.
Can anyone benefit from the Technology Investment Boost?
No. It’s designed for small businesses (like yours) with an aggregated annual turnover below $50 million.
Are there any restrictions?
Yes—expenditure will be capped at $100,000 per year. If you exceed the $100,000 cap, you can still deduct any additional amounts under the existing laws.
When does it start?
The bonus will apply to any relevant expenditure incurred between 7.30 pm on 29 March 2022 and 30 June 2023.
You should note that for any expenditure incurred up to 30 June 2022, you will need to claim the amount as usual for the 2021-22 financial year and the bonus of 20% in your 2022-23 tax return. You can deduct the full 120% for qualifying expenses between 1 July 2022 and 30 June 2023 in your 2022-23 tax return.
Anything else you should know about?
Absolutely. The Technology Investment Boost isn’t the only win for small businesses taking their operations into the digital cosmos. The Government has also announced the Skills and Training Boost—another bonus 20% deduction foreligible external training courses for upskilling employees.
What does this mean for your small business’s digitisation? You can also score a bonus deduction for courses that teach your employees how to use your new digital tech. It’s a win-win situation.
How can Kloudify help?
Digitisation is what we do. It’s the backbone of our business. You might’ve noticed that we offer frictionless technology solutions to equip your business with the tools to accelerate efficiencies, prioritise productivity, and generate growth. We fly your business into the digital clouds.
So why not get a bonus 20% tax deduction on Kloudify’s services and catch a flight now? Find out how.