Discover how you can claim an additional 20% tax deduction on your technology expenditure, including Lawpath’s legal plans, aimed to digitise your small business operations.
A Windfall for Digitisation
Small businesses are the backbone of the Australian economy, contributing significantly to our GDP. Recognising this, the government has rolled out a Small Business Technology Investment Boost. This initiative allows businesses with an aggregated annual turnover of less than $50 million to claim an extra 20% tax deduction. The goal is to support small businesses in enhancing their digital operations.
This opportunity applies to eligible expenditure incurred from 7:30 pm AEDT on 29 March 2022 to 30 June 2023. Business expenses and depreciating assets capped at $100,000 per income year are covered, allowing you to receive a maximum bonus deduction of $20,000 per income year.
Is Your Business Eligible?
To leverage the small business technology investment boost, your business must be categorised as a small business entity with an aggregated annual turnover under $50 million in the year you incur the expenditure. This expenditure must already be deductible under tax law and incurred within the eligible timeframe.
If the expenditure is on a depreciating asset, the asset must be installed and ready for use by 30 June 2023.
The Scope of Your Claim
Eligible expenditure encompasses a range of digital business elements such as:
- Digital enabling items: Hardware, software, internet costs, and network systems.
- Digital media and marketing: Content that can be created, accessed, stored, or viewed on digital devices, including web design.
- E-commerce: Goods or services facilitating online transactions, portable payment devices, digital inventory management, cloud-based service subscriptions, and advice on digitisation.
- Cyber security: Backup management, monitoring services, and security systems.
Remember, the bonus deduction is applicable only to the business-related portion if the expense has private usage too.
Note that there may be fringe benefits tax (FBT) consequences associated with the expenditure.
Boost Your Business with Lawpath
As a digital-enabling solution, this tax bonus extends to Lawpath legal plans. Our plans, including our premium Legal Advice Plan, are designed to help businesses run smarter and more efficiently. With access to 400+ legal documents, unlimited consultations, and our state-of-the-art AI tool to comprehend contracts, your business can stay legally sound while digitising operations.
Claim your bonus 20% tax deduction today, digitise your business operations, and secure your business’s future success. As we step further into the digital age, make sure your business isn’t left behind!
