To help small businesses invest in digital operations, the small business technology investment boost is a bonus 20% tax deduction claimable on new digital operations equipment, such as:

For every $100 spent, small businesses will get a $120 tax deduction on eligible items where:

• the expenditure was incurred between 29 March 2022 and 30 June 2023 and
• if the expenditure was on a depreciating asset it was first used, or installed ready for use, by 30 June 2023.

The boost is for small businesses with an annual turnover of less than $50 million.

An annual cap applies so that expenditure up to $100,000 is eligible for the bonus deduction, with the bonus deduction capped at $20,000 per year. The maximum bonus deduction a business can claim is $40,000 for the entire period.

However, different cap rules apply if your 2022–23 income year begins before 1 July 2022. As an ‘early balancer’ you can:

• claim a maximum bonus deduction of $20,000 for the period between 7:30 pm AEDT 29 March 2022 and the end of your 2022–23 income year
• then claim a maximum bonus deduction of $20,000 from the start of your 2023–24 income year to 30 June 2023.

These small businesses are also able to deduct an additional 20% of expenditure incurred for the provision of eligible external training courses to their employees.

Speak with one of our accountants today to discuss your small business boost deduction by calling us on 03 5443 0344.