Is it time to upgrade your tired website or store? Or starting fresh perhaps? Did you hear the great news in the new Federal Budget? You can deduct 120% of the cost to do this!
The Australian Federal Government announced a technology investment boost, aimed at small businesses (with aggregated annual turnover of less than $50 Million) to support digital adoption.
From now until 30 June 2023 businesses that fit the turnover criteria will be able to deduct an additional 20% of the cost incurred on business expenses and depreciating assets that support their digital adoption. Examples include portable payment devices, cyber security systems or subscriptions to cloud-based services.
There’s a cap of $100,000 per income year on eligible expenditure. You can spend more than $100,000 but can only claim the additional 20% deduction on eligible expenditure up to $100,000.
Further details are available on the ATO website.
Business owners are advised to seek advice from their accountants on their eligibility for the additional deductions, before making any purchasing decisions.