In 2023, running a business without using at least some form of technology is almost impossible. However, many small businesses struggle to invest in dependable technology or spend many years paying back hefty loans for the technology they couldn’t survive without.
The above situation is a tricky one to be in, and in the worst case, it can be the reason many small businesses deteriorate or end up in debt. To tackle this, the 2022-2023 Budget announced new measures to support small businesses through a technology boost.
In this article, we’ll cover the ins and outs of the small business technology boost, detailing how long you have left to apply and eligibility.
What is The Small Business Technology Boost?
Announced on the 29th of March 2022, the government detailed its plans for supporting small businesses as part of the 2022-23 Budget. Within the boost, small companies can deduct an additional 20% of their expenditure that went towards digital operations, with the likes of cyber security, cloud-based services, and more included in the boost.
Small businesses must have an aggregated annual turnover of less than $50 million to be eligible for the technology investment boost.
Which Expenses are Eligible?
The following expenses are eligible but aren’t limited to this list:
- Cyber security systems
- Portable payment devices
- Subscriptions to the likes of cloud-based services
- Computer software and hardware
- Digital media and marketing
When Does The Technology Investment Boost Occur?
The technology investment period commenced at 7.30 pm on the 29th of March 2022 and ends on the 30th of June 2023. Therefore, any expenditure that has taken place within this period is eligible for the boost, with some limitations on price (if it’s over $100,000).
As the 2022 tax return period is over, the technology expenses eligible for the investment boost will be those incurred between the 1st of July 2022 and the 30th of June 2023.
Therefore, if you’re just now hearing about the technology boost, you can go through your expenses from the 1st of July 2022 and highlight all of those regarding technology, using the eligibility list we detailed above as a guide for knowing which fees are tax deductible. You’ll be able to deduct these expenses in your 2023 tax return and receive the full percentage, so ensure you accurately record each expense to get the most out of your deductions.
Of course, you’ll notice that the boost started on the 29th of March 2022, and you can also add expenses made after this date but before the 1st of July 2022 to your 2023 tax return to receive the additional 20% on eligible expenses.
Do You Need Help Navigating Company Bookkeeping? We Can Help
Keeping track of finances when running a small business is challenging but integral to business success and making the most of government schemes, such as the small business technology boost. Contact Advisory One today to discover how we can help you.