As part of the 2022 budget initiatives the government introduced:
“The Government is introducing a Technology Investment Boost to support digital adoption by small businesses, providing 120 per cent tax deductions for adoption of new digital services. Although welcome, it is not directly focussed on new R&D outcomes.”
On 29 March 2022, as part of the 2022–23 Budget, the then Government announced it will support small business through the following new measures. These measures are not yet law and are subject to decisions from the new Government.
Small Business Technology Investment Boost
Small businesses (with aggregated annual turnover of less than $50 million) will be able to deduct an additional 20 per cent of the cost incurred on business expenses and depreciating assets that support their digital adoption, such as portable payment devices, cyber security systems or subscriptions to cloud based services, within certain conditions whereby caps apply.
When the technology investment boost applies
This measure will apply to expenditure incurred in the period commencing from 7:30 pm AEDT 29 March 2022 until 30 June 2023.
How to claim the technology investment boost
For eligible expenditure incurred between 7:30 pm AEDT 29 March 2022 until 30 June 2022:
- claim the expenditure as usual in your 2021–22 tax return, and
- 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.
