The Australian Government has revealed its 2022-23 budget and one of the headline features encourages businesses to embrace digitisation. So what is it and what does it mean for your business?

In his budget speech last night, Australian Treasurer Josh Frydenberg revealed the Government’s key budget measures for 2022-23. In it he announced all sorts of sweeteners for business and individuals alike. We are just a matter of weeks away from a Federal election after all! One that caught our attention is what he’s dubbed the “Technology Investment Boost”, or budget tax breaks for small businesses investing in technology.

The Treasurer said on Tuesday night that he hoped the technology scheme would encourage small businesses “that are embracing the digital revolution” by rewarding those investing in new technologies.

So what is it exactly?

The Federal Government is offering targeted tax-breaks to small businesses investing in digital technologies and training.

“From tonight, every hundred dollars these small businesses spend on digital technologies like cloud computing, eInvoicing, cybersecurity and web design will see them get a $120 tax deduction,” Mr Frydenberg said.

An annual cap of $100,000 will apply to eligible technology expenditure. The initiative is set to last until 30 June 2023.

Small business gets tax offsets to invest in technology: Australian Budget 2022-23
Australian Budget 2022-23 includes tax offsets for small businesses investing in technology

Who is eligible? 

Australian businesses with an aggregated annual turnover of less than $50 million are eligible for the Technology Investment Boost tax incentives.

What does it mean?

Effective from 29 March 2022, businesses can deduct eligible costs from their taxable revenue at an amount greater than was actually spent. It makes the next 12 months a very attractive time for small businesses in Australia to commit to those technology investments they’ve been thinking about. From our understanding, it includes any investments up to $100,000 by eligible businesses in implementing Salesforce or enhancing existing Salesforce programs. Though we do encourage businesses to explore this directly with their accountant.

What about training?

Alongside the tax breaks for technology investment, Treasurer Frydenberg also announced a Skills and Training Boost. This program encourages eligible businesses to deduct training expenses at a rate of 120%. However, certain criteria apply. For example, in-house and on-the-job training is not eligible. Nor is training people who are not employees of the business. Given training is also a key to rolling out Salesforce to new users, businesses should also explore this angle to see how investment dollars could go further.

Does your small business have plans to invest in your Salesforce agenda over the next 12 months?

Get in touch we’d love to help you make it happen!