
Technology investment boost
On 23 November 2022, the Treasury Laws Amendment (2022 Measures No. 4) Bill 2022 (the Bill) was introduced into the House of Representatives
The Bill contains provisions to implement the proposed measures detailed below.
Schedule 5 to the Bill proposes to amend the IT(TP)A to allow small businesses with an aggregated annual turnover of less than $50 million, to access a bonus deduction equal to 20% of eligible expenditure. This measure was announced as part of the Federal Budget 2022–23 by the previous Government on 29 March 2022.
Eligible expenditure includes costs incurred on business expenses and depreciating assets that support their digital operations or digital adoption, such as portable payment devices, cyber security systems or subscriptions to cloud based services.
An annual $100,000 cap on expenditure will apply to each qualifying income year or specified time period, up to a maximum bonus deduction of $20,000 per income year or specified time period.
The boost is proposed to apply to eligible expenditure incurred from the budget announcement until 30 June 2023. Normal or late balancers will claim the bonus deduction in their 2023 tax return in respect of expenditure incurred between 7:30pm AEDT on 29 March 2022 and the end of their 2021–22 income year, as well as expenditure incurred in the 2022–23 income year. Special rules will apply to taxpayers who are early balancers.
This measure is proposed to apply from 7:30pm AEDT on 29 March 2022 until 30 June 2023.
If you require any more information about applying this measure to your business, please let us know and we will be happy to assist you further.
Author
Alex Vrahos
Partner
Alex is a Chartered Accountant (CA) with over 15 years’ experience in senior leadership roles within the mid-tier accounting sector and leading international accounting firms.
Recent articles by Alex
-
Commercial Leasing Code of Conduct for SMEs during COVID-19
The Federal Government has today announced a mandatory code of conduct for lessors and SME lessees with a turnover up to $50 million, to apply for the duration of the Covid-19 crisis.
-
2022-23 Federal Budget
This Federal Budget has placed focus on securing Australia’s economic recovery. We’ve outlined the key elements that may affect you.
-
Technology investment boost
Small businesses with an aggregated annual turnover of less than $50 million can access a bonus deduction.