Alert
Budget 2022: One-year boost to accelerate digital adoption.
Small businesses will be able to deduct a further 20 percent from the cost of cloud services and cyber security systems, as the federal government tries to accelerate digital adoption.
The government revealed the “technology investment boost” in its 2022-23 budget, with the measure to apply immediately and run until the end of June 2023.
“From tonight, every hundred dollars these small businesses spend on digital technologies… will see them get a $120 tax deduction,” treasurer Josh Frydenberg said during his budget speech.
Businesses with an aggregate annual turnover of less than $50 million will be able to claim the discount on “expenditure up to $100,000”, according to budget documents.
Cloud-based services, cyber security systems and portable payment devices are called out as acceptable “business expenses and depreciating assets that support… digital adoption”.
The measure is expected to reduce tax receipts by $1 billion over the next four years, though this will not be felt by the Australian Taxation Office until 2023-24.
Payments will also increase by $7.2 million over the forward estimates.
“The boost for eligible expenditure incurred by 30 June 2022 will be claimed in tax returns for the following income year,” budget documents state.
“The boost for eligible expenditure incurred between 1 July 2022 and 30 June 2023 will be included in the income year in which the expenditure is incurred.”
SOURCE: https://www.itnews.com.au/news/small-business-tax-breaks-for-cloud-cyber-security-grow-578038