Concessions for Your Digital Upgrades – Know What You Can Claim.

There are a number of concessions that we have talked about in previous editions of KSW Insight. With year end now passed, our attention turns to preparing the 2023 financial year tax returns. It is important to remember the concessions that will save you tax this year and consulting a tax advisor might be one of your best choices to leverage these opportunities.

Small business boosts now available – The boosts are available for small businesses investing in digital operations, or skills and training. For example, new equipment like technology, cloud-computing, e-invoicing or cyber security. “Small businesses will receive a bonus 20% tax deduction for eligible expenses in their tax return, so for every $100 spent, you’ll get a $120 tax deduction – but there are caps on the total amount that can be claimed,” Assistant Commissioner Emma Tobias said. “If you’re a small business who invested in technology or digital operations between 29 March 2022 and 30 June 2023, then this boost is for you,” she said. Likewise, the small business skills and training boost allows businesses to claim an additional 20% tax deduction to train new and existing employees between 29 March 2022 and 30 June 2024. The training must be through a registered external training provider in Australia.

Small Business Technology Investment Boost

Small businesses (with an aggregated annual turnover of less than $50 million) can deduct an additional 20 percent of the expenditure incurred for the purposes of business digital operations or digitising its operations on business expenses and depreciating assets such as portable payment devices, cyber security systems or subscriptions to cloud based services.

An annual $100,000 cap on expenditure will apply to each qualifying income year. Businesses can continue to deduct expenditure over $100,000 under existing law.

What you can claim – Eligible expenditure may include, but is not limited to, business expenditure on:

  • digital enabling items – 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 – 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, subscriptions 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.

If you have any queries in relation to these concessions don’t hesitate to reach out and contact us.

Kreston Stanley Williamson

*Correct as of 26 July 2023

*Disclaimer – this article has been produced by Kreston Stanley Williamson as a service to its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this article, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under professional standards legislation.

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