Please note, this article is intended as general advice only and, as with any tax-related matter, it’s important to get professional advice from a qualified accountant or tax specialist.
With EOFY approaching, chances are you – or your bookkeeper or accountant – are starting to think about the tax deductions you can claim this year.
And while you’re no doubt aware of the more traditional tax deductions , such as rent expenses, office supplies and employee wages, you may be less aware of some of the technology-related tax deductions you’re entitled to claim. So, let’s take a look at some of the most surprising business technology tax deductions.
Website development
These days, every small business owner understands the need for a website, not only to reach new customers but to grow their business. If the 2022-23 financial year was the year you invested in developing your business website, you can claim a tax deduction for these costs. This includes website design, domain name registration and hosting fees.
Software and hardware
Investing in software and/or hardware can improve business productivity and efficiency. Considered essential for the operation of your business, new accounting software or upgrades to your office computers are not just technology tax deductions, they can actually transform your business.
Cloud computing services
Cloud computing services allow small businesses to store and access data from anywhere in the world, at any time. This gives you and your employees the flexibility of a hybrid working environment, not to mention the potential green benefits of cutting down on the physical remnants of hardware or software updates or upgrades over the years. After the initial investment of moving your business into the cloud, you’ll save time and money in the long run.
Cybersecurity
As we’ve seen over the last year or so, even the biggest businesses can fall prey to cyber-attacks and hacking. With businesses increasingly reliant on technology, the risks grow and small businesses are especially vulnerable to these attacks, often without the funds to invest in adequate cybersecurity. If you’ve invested in cybersecurity to protect your business, you can claim a tax deduction for the costs.
And if you’ve yet to properly secure your business against cyber threats, contact us today as we can put together an IT package to suit your business and your budget.
Double boost to small business
As part of the 2022-23 Federal Budget, businesses with an aggregated annual turnover of less than $50 million can take advantage of the following tax deductions.
Small Business Technology Investment Boost
To encourage small business to go digital, the Government provided $1billion towards a Technology Investment Boost. Eligible small businesses can deduct a bonus 20 percent of the cost of expenses and depreciating assets supporting digital uptake. This includes portable payment devices, cyber security systems or subscriptions to cloud-based services. The boost applies for eligible expenditure of up to $100,000 per year from 7:30 pm AEDT 29 March 2022 until 30 June 2023.
Small Business Skills and Training Boost
Small businesses can access an additional 20 percent bonus deduction for eligible external training courses for upskilling employees. The Skills and Training Boost applies from 7:30 pm AEDT 29 March 2022 until 30 June 2024.
And don’t forget about the Instant Tax Write Off either!
By taking advantage of these tax deductions, you can invest in technology to improve your business without breaking the bank. And if you’re suddenly keen to invest into your business technology, the team at The IT Agency are more than happy to help you spend those dollars before EOFY.
So why not give us a call and see how we can help propel your small business into the future.
