Bonus Tax Deduction on Technology to reduce financial burden on SMEs

Bonus Tax Deduction on Technology to reduce financial burden on SMEs

Small businesses will be getting financial aid as the Australian Federal Budget 2022-2033 has announced an additional 20% bonus tax deductions on technology. Over 3.6 million SMEs from the country, won’t have to do payment on digital innovation and upgrade from their pocket. An annual cap of $100,000 has been set on payments, and the tax deduction bonus went live from 7:30 pm March 29, 2022, and will last till June 2023.

The decision has come in the light of the Australian government’s constant effort to support and boost small businesses. Millions of dollars have also been assigned to various sectors that cater to the overall development of small companies. The Aussie government has been trying to not only help them in establishing their business but also to create more jobs for a brighter future. This measure will grant a tax relief of $1 billion.

As per federal treasurer Frydenberg, every hundred dollars spent by small businesses on digital technologies like cloud services, cyber security, online payment devices etc., will grant them a $120 tax deduction. This boost aims to encourage SMEs who are keen to go digital, and they won’t need to spend from their pocket.

This news has delighted small business owners who have welcomed this measure that will reimburse payments done by them, from their pocket, on technology,

Who Shall Benefit?

Over 3.6 million small businesses from Australia that have an annual turnover of less than $50 million will be able to claim this 20% bonus tax deductions on technology. Besides, the new ones, who want to embark on their journey in the digital space, will also be covered under this measure.

Services Eligible For The Claim

The 20% additional bonus tax deductions on technology cover the cost of expenses incurred on digital assets like cyber security, e-voicing, subscription to cloud-based services and portable payment devices. External skills training offered to employees by an educational institute registered in Australia is also covered. SMEs can offer this training online or in person (Australia only).

What’s Not Covered?

In this digital boost initiative, the bonus tax deductions on technology doesn’t cover costs spent on in-house and on-the-job skill training. It also doesn’t comply with the amount spent on training people who are not employees of the company.

Why Choose Anitech Consultation?

To have a secured digital upgrade, new as well as old small businesses would require an experienced guide to create a well-structured plan that will help in securing their online space. Here, Anitech comes into the picture. Known for offering pioneer solutions in cyber security, Anitech has an experienced consultation team who will create a strategic model to offer top-notch online security to your business.

At Anitech, managing Information Security risks will most likely be a prioritized list of Eight Essential Control Measures called Essential Eight. This would harden the Security Posture of small businesses to make it much harder for Adversaries to Compromise the Networks and Systems

An iterative cycle is used to monitor as well as to measure the process. It determines security requirements based on calculated risk assessments as well as implements controls to mitigate them. Below is the process that will give you a gist of why you must opt for Anitech for a secured digitalization of your business. We have the technical expertise to assist in code changes.

Also Read: Our Risk And Compliance Webinar Offered Lots Of Insight

Below is a glimpse of our cyber security consultation plan that will give you a gist of why you must choose Anitech. We will help you in strategically utilizing the 20% bonus tax deductions on technology granted by the government to boost and innovate your business online.

So, if you are a small business that needs a mentor in Cyber Security consultation, and wants to make the most of the government granted tax benefit, do contact us on 1300 802 163! Visit our inquiry page. We will be happy to help!