The Technology Investment Boost, initially announced in the last federal budget in March and enacted into law just before the 30 June expenditure deadline, grants small businesses with a turnover of less than $50 million a 20 percent bonus deduction on technology-related expenses that support their digital operations and digitisation efforts.
Technology Investment Boost - What Can You Claim?

This is a comprehensive measure put forth by the government, intended to encompass a wide range of business costs and assets. However, business owners are likely to have questions about what they can claim. The ATO suggests a useful rule of thumb for determining eligibility: if the small business would have incurred the expense even if they weren’t operating digitally, it may be eligible.

This boost applies to eligible expenses incurred between 7:30 PM on 29 March 2022 and 30 June 2023, with a maximum bonus deduction of $20,000 per income year. If the expenditure pertains to a depreciating asset, the asset must have been put into use or made ready for use by 30 June 2023. Using this guideline, the following costs are considered eligible:

  • Consultation regarding digitising a business.
  • Leasing digital equipment
  • Repairs and improvement to eligible assets (but not ‘capital works’).

New and ongoing subscription costs can also be deemed eligible expenditure if they are linked to a client’s digital operations. For example, ongoing subscriptions to accounting software for business purposes or new subscriptions for digital content used in creating web content for advertising would both be eligible. In such cases, businesses are advised to maintain an explanation of how these expenses contribute to their digitisation efforts and to keep accurate records of all claims made.

The ATO has emphasised that they are unable to provide an exhaustive list of eligible expenses under this initiative, but it is designed to encompass a broad spectrum of business costs and assets associated with digital transformation. Notably, a prior list of eligible items published by the ATO in August did not include ongoing accounting software subscriptions. This list encompassed digital enabling items, digital media and marketing expenses, e-commerce-related costs, and expenditures related to cybersecurity, among other things.

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Armada Accountants Pty Ltd – ABN 79 009 298 542, Armada Financial Planning Pty Ltd – Corporate Authorised Representatives of Armada Wealth Management Pty Ltd AFSL 535978, Armada Lending Pty Ltd – ABN 20 603 067 983 – Authorised Corporate Credit Representative (470054) of BLSSA Pty Ltd (ACL 391237), Armada Audit Services Pty Ltd – ABN 39 151 015 002, Armada Business Services Pty Ltd ABN 29 008 762 481 are members of the Armada Group. Each member of the Armada Group is a separate legal entity in its own right and is not in partnership with any other members of the Armada Group. Liability limited by a scheme approved under Professional Standards Legislation.


Armada Accountants & Advisors acknowledges and pays respect to the past, present and future Traditional Owners and Elders of this nation and the continuation of cultural and spiritual practices of Aboriginal and Torres Strait Islander peoples. Armada also acknowledges the Traditional Owners of the land where our Perth and Port Hedland offices are located, the Whadjuk Noongar People (Perth) and Kariyarra People (Port Hedland).

Copyright © 2024 Armada Accountants & Advisors.
ALL RIGHTS RESERVED 

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