You may have heard a few whispers about a new tax break to encourage small businesses to invest in digital capabilities. Well, you heard right! Pull up a stool, pass the nuts and make sure you have a read, so you don’t miss this round – the PM’s buying.
It’s an excellent time to invest in your business’s digital growth, build or refresh your website, and provide your customers with an exceptional online experience.
The Government’s Technology Investment Boost is designed to reduce the cost of going digital, supporting businesses to invest more in their digital capability.
Businesses with an annual turnover of less than $50 million will be able to claim a bonus 20% deduction for the cost of expenses and depreciating assets, up to $100,000 of expenditure per year. Simply put, this means for every $100 you spend on these digital technologies, if eligible, you can claim a $120 deduction!
This includes spending on services such as:
- Website design
- Online sales platforms
- Cyber security
- Cloud computing
- Portable payment devices
- New laptops
The boost will apply to the expenditure from 29 March 2022 until 30 June 2023.
When and how do I claim?
Small businesses must first submit the usual expenditure claim to apply for the bonus on purchases made between 29 March 2022 and the end of the 2021-2022 financial year. The ATO has stated that the bonus 20% will only be applied in the 2022-2023 financial year.
Eligible expenditure made in the 2022-2023 financial year is different. Small businesses will be free to deduct the full 120% in their 2022–23 tax return.
What else do I need to know?
How can we help?
Our website and eCommerce website design services are eligible expenditure items, which means you can benefit from our custom-designed websites tailored to your business needs. Your website is one of your hardest-working team members and needs some TLC now and then. It is the ‘hub’ for all your marketing, messaging and branding opportunities. A good website should be able to tell your brand story, sell while you sleep or run the entire sales operation of your business. At Wolf IQ, we believe that a website is not a ‘set and forget’ tool. We manage our client’s websites to guarantee a return on your investment and time.
We think this is an exciting initiative from the Federal Government and look forward to helping businesses like yours grow. Contact us today to learn more about how we can help your business thrive.