For the 2023 tax return, there is a one-time 20% bonus deduction available for technology related spend. It was only officially made law on 23 June 2023 and quickly ended a week later on 30 June 2023. However, it is retroactive back to the announcement of the government’s intent to create it on 29 March 2022. For businesses with less than $50 million in aggregated turnover, any expenditure during that time that falls into the categories below will be eligible:
Digital enabling items, such as computer and telecommunications hardware and equipment, software, internet costs, systems and services that form and facilitate the use of computer networks.
Digital media and marketing, such as audio and visual content that can be created, accessed, stored or viewed on digital devices, including web page design.
E-commerce – goods or services supporting digitally ordered or platform-enabled online transactions, portable payment devices, digital inventory management, subscription to cloud-based services, and advice on digital operations or digitising operations, such as advice about digital tools to support business continuity and growth.
Cyber security- cyber security systems, backup management and monitoring services.
The eligible time frame is divided into two periods, 29 March 2022 – 30 June 2022 and 1 July 2022 – 30 June 2023. Each period has a deduction cap of $100,000, meaning a 20% bonus deduction of up to $20,000.
There are a couple carve outs for items specifically not eligible for the Technology Boost, which are:
Salary and wages
Capital works costs
Financing costs
Training or education costs
Expenses that form part of your trading stock costs
If you think you may qualify for the Small Business Technology Investment Boost, please let us know when you confirm you are ready for us to prepare your 2023 tax returns.