Small Business Technology Boost

In the 2022 Federal Budget, the government announced the Small Business Technology Investment Boost.

The measure was intended to allow small businesses to claim an additional 20% tax deduction for expenditure incurred for the purposes of business digital operations or digitising its operations on business expenses and depreciating assets such as portable payment devices, cyber security systems or subscriptions to cloud based services.

This means that a business moving to a cloud based accounting software (like Xero or Quickbooks), or purchasing portable eftpos machines could claim a deduction for 120% of the cost.

However, at this point the measure still hasn’t passed into law. The Albanese Government has indicated it is supportive of the measure, however there are only a few sitting days of parliament before 30 June, which is creating some uncertainty for business.

Our advice? Digitizing your business is essential and makes sense with or without government incentives. So spend anything you need to, keep good records and hopefully the government will be true to its word, but if not, your business will still have benefited.

We will keep you updated!