In today’s digitally driven world, the importance of keeping up with technology cannot be understated. With the Small Business Technology Investment Boost introduced, Australian small businesses are getting a golden opportunity to advance their digital capabilities. But with so many facets to consider, how do you ensure you’re making the most of it?
That’s where the expertise of Michele Pentecost and the team at Acceler8 Accounting Solutions comes in.
What is the Small Business Technology Investment Boost?
This initiative was introduced in the 2021-2022 Federal Budget to aid small businesses in embracing digital technologies. It grants a bonus 20% tax deduction on eligible expenditures tied to digital operations. From April 1, 2021, to June 30, 2023, small businesses can reap the benefits of this scheme, diving deep into the digital realm and bolstering their competitive edge.
Why does this matter?
With a staggering $1.2 billion funding pool and availability for up to 60,000 businesses, this boost is designed to level the playing field, enabling small businesses to invest in technologies previously considered out of reach.
Eligible expenditures can include anything from depreciating assets like laptops and cameras, software-related expenses like CRM software and design software, to expenses related to IT services like cloud computing and cybersecurity. The maximum deduction a business can claim under this boost is $100,000, translating to a significant financial incentive for small businesses.
Why Choose Acceler8 Accounting Solutions?
Understanding tax schemes, let alone maximising their benefits, is often easier said than done. With over 30 years of experience as an accountant and consultant, Michele Pentecost spearheads the team at Acceler8, offering businesses invaluable insights into such programs.
Partnering with Acceler8 ensures:
- Expertise on Tap: With deep roots in accounting, the Acceler8 team is well-versed in the intricacies of the Small Business Technology Investment Boost.
- Personalised Solutions: Recognising that every business is unique, Michele and her team craft tailored strategies to ensure clients effectively leverage the boost.
- Hassle-free Experience: Navigating tax schemes can be overwhelming. The team at Acceler8 simplifies the process, ensuring businesses meet all criteria, from purchasing eligible items to maintaining necessary records and more.
Making the Most of the Boost: A Quick Guide
For businesses wondering what expenses to focus on, here’s a quick rundown of the top 10 expenses that fit the bill:
- Computer Hardware
- Software Solutions
- Website Development
- Communication Devices
- Office Equipment
- Security Systems
- Server Upgrade
- Cloud Services
- POS Systems
- Technology Upgrades
While this list provides a starting point, a plethora of other expenses also qualify. For instance, eligible depreciating assets span from desktop computers to projectors, while software-related expenses can range from off-the-shelf software to design software. The options are vast and varied.
To better grasp how this plays out, consider the example of ABC Consulting. By spending $21,000 on laptops, software subscriptions, and more, they’re set to claim a tax deduction of $4,200. On the other hand, XYZ Retail, aiming to tap into the e-commerce realm, benefits from a tax deduction of $5,400 after incurring $27,000 in eligible expenses.
Ensuring You’re On the Right Track
Claiming the Small Business Technology Investment Boost boils down to a straightforward process:
- Make eligible purchases.
- Retain all documentation.
- Include the expenses and deductions in the annual tax return.
However, businesses should stay vigilant and adhere to the scheme’s guidelines. A handy checklist covering everything from the equipment purchase date to training provided to employees can help businesses stay on track.
Closing Thoughts
The Small Business Technology Investment Boost is a golden opportunity, but like all things tax-related, it’s fraught with complexities. Businesses partnering with Michele and the Acceler8 team ensure compliance and maximise their benefits. Ensuring your business isn’t left behind is paramount as the digital world evolves. Let Acceler8 be the partner that propels you forward.
Disclaimer: This article is designed for informational purposes only and should not replace professional advice. We strongly recommend consulting with professionals before making any financial decisions.