What is The Small Business Technology Investment Boost? (Free Factsheet)

Published

19 Aug 2022

What is The Small Business Technology Investment Boost? (Free Factsheet)

2 min read

What’s in the Small Business Technology Investment Boost factsheet?

On 29 March 2022, the Australian Federal Budget was announced. With many SMEs still feeling the economic impact of Covid-19, the 2022 Federal Budget included funding to help Australians navigate the rising cost of living and provide incentives to small businesses. Among the funding was one tax incentive designed to increase small business uptake in digital technology – the Small Business Technology Investment Boost. We’ll cover everything you need to know about it, and how much you can save with 91�� while this scheme is in place.

Disclaimer: The information in this report is current as at 23 May 2022, and has been prepared by 91�� Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (91��). The views expressed in this report are general information only, are provided in good faith to assist employers and their employees and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. 91�� does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damage arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this report. You should undertake your own research and seek professional advice before making any decisions in reliance on the information in this report.

Small Business Technology Investment Boost – Overview

The Small Business Technology Investment Boost is an ATO tax incentive that allows eligible businesses to claim an extra 20% tax deduction on technology-related expenses, up to a specified limit. This initiative aims to help small businesses improve operations through digital investment.

Who Qualifies?

To be eligible, businesses must:

Have an annual turnover of under $50 million
Be a sole trader, partnership, company, or trust
Incur expenses directly linked to digital operations

Eligible Timeframe

Expenses must be incurred between 29 March 2022 (7:30 PM AEDT) and 30 June 2023
If the expense is for a depreciating asset, it must be first used or installed by 30 June 2023

What Expenses Qualify?

✔ Digital Tools & Software – Computers, hardware, software (e.g., Xero, MYOB), internet costs, networking systems ✔ Digital Marketing – Website design, digital media creation ✔ E-Commerce – Online payment systems, cloud services, digital inventory management ✔ Cybersecurity – Security systems, backup management, monitoring services ✔ Depreciating Assets – Computer equipment and digital-related assets

What’s Not Covered?

✘ Wages & Salaries ✘ Phone Bills ✘ Capital Works & Financing Costs ✘ Training (may qualify for a separate boost) ✘ Trading Stock Expenses

How to Claim

The deduction is applied as a tax adjustment in your 2023 Income Tax Return
The maximum expenditure cap is $100,000 per year, resulting in a $20,000 bonus deduction per year
Since the scheme covers part of 2022 and all of 2023, the total possible bonus deduction is $40,000

What You Need to Do

✅ Ensure expense details are clear and attach invoices in bookkeeping software ✅ Separate eligible expenses from non-eligible ones (e.g., phone vs. internet) ✅ Identify any private portion of expenses before submitting ✅ Contact your MGI advisor if you have questions

FAQs

Does the boost cover existing technology? Yes, it applies to both new and existing digital tools. Are social media ads eligible? Likely, as they fall under Digital Media & Marketing, provided they directly support business operations. What if I invested in digital tools before the eligible period? Only expenses incurred within the timeframe qualify. However, depreciable assets may still be eligible depending on depreciation rules. For more details download , the factsheet now, and also refer to the ATO website. More resources: