2022 Digital Technology Deduction Boost


What is the Digital Technology Investment Boost?

The Small Business Technology Investment Boost was recently announced in the 2022 Federal Budget to allow businesses to claim an extra 20% deduction on investments into things like Website Design, Maintenance & Hosting as well as software or portable payment devices (Like a square reader).

The aim is to help Australian business’ reduce the cost of entering the online world. To keep them competitive both domestically and internationally.

 

The Details

  • Ability to claim on up to $100,000 in expenditure ($120,000 deduction)
  • Any business with less than $50 million turnover is eligible.
  • Active from 7:30pm the 29th of March 2022 until the 30th June 2023 (just over a year)

The wording from the budget papers:

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. An annual cap will apply in each qualifying income year so that expenditure up to $100,000 will be eligible for the boost. 

What things can I claim?

While the ATO has not released a specific list of approved expenses, by their wording it is any expense or depreciating asset support the businesses digital adoption.

Here are a few ideas of things that you may be able to claim this boost on: 

Remember, always speak to your accountant to ensure these would be considered eligible expenses. 

  • Website Design
  • Website Hosting/Maintenance
  • Subscriptions to cloud software like a CRM or Canva Pro Subscription
  • A new Point of Sale System/Digital Cash Register
  • Graphic Design for Social Media
  • The optimisation of your Google My Business Profile
  • A Cyber-Security Audit/System Implementation.

We will continually update this page as the ATO releases more information. 

How much will I save?

Now every business is different, but we can give a rough idea on what the savings will be based on the flat 30% company tax rate adopted in Austraia.

Eligible Expenses Amount Boosted Deduction Amount Tax Saving
$2000.00 $2400.00 $120.00
$5000.00 $6000.00 $300.00
$15000.00 $18000.00 $900.00
$30000.00 $36000.00 $1800.00
$75000.00 $90000.00 $4500.00
$100000.00 $120000.00 $6000.00

If you’re looking to increase your business’ online presence and digital uptake in 2022/23 please Get in Touch today to see how Refresh The Web can help you.