Australian businesses offered bonus tax deductions on digital expenditure with the Technology Investment Boost
Australian businesses are amidst an ever-changing and evolving landscape, where digital transformation is critical to driving growth and productivity. By embracing the latest technology, businesses can pave the way for improvements across everything from employee engagement to customer satisfaction.
That’s why Australian Treasurer Josh Frydenberg announced the Technology Investment Boost as part of the Federal Budget 2022. At a cost of $1.6 billion, the boost will include targeted concessions to encourage businesses to embrace technology in the workplace, with a focus on Software as a Service – commonly known as “SaaS” – solutions.
Treasurer Frydenberg described the boost as an opportunity for businesses to become more productive and an incentive for those embracing the digital revolution. The passion for investment in digital comes from evidence businesses with an advanced level of digitisation are 50% more likely to increase revenue, eight times more likely to create jobs and seven times more likely to scale.
So, what is the Technology Investment Boost and how can you take advantage of it?
What is the Technology Investment Boost?
The Technology Investment Boost allows businesses to claim a bonus 20% deduction for the cost of expenses and depreciating assets. They will be able to claim 120% of the costs as part of budget measures. Essentially, this means that incurred costs can be deducted from taxable revenue at an amount greater than what was actually spent.
Who can claim the Technology Investment Boost?
Businesses with an annual turnover of less than $50 million can take advantage of tax deductions on their spending on new technologies.
How much can I claim and until when?
The Technology Investment Boost initiative will have an annual cap of $100,000 and is set to last until 30 June 2023.
What can I claim?
Businesses can claim on technologies such as portable payment devices, cybersecurity systems and subscriptions to cloud-based services, including Roubler’s workforce management solution.
How can I claim the Technology Investment Boost?
Claiming the Technology Investment Boost is straightforward and doesn’t deviate from the usual methods of claiming deductions from the ATO.
For eligible expenditure incurred between 7:30 pm AEDT 29 March 2022 until 30 June 2022, you can claim the expenditure as usual in your 2021-22 business tax return and 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 business tax return.
If you would like to find out more about Roubler’s workforce management software solution, then please contact our team today.