Small Business Digital Tax Boost

Small Business Digital Tax Boost

The 2022-23 Federal Budget includes tax benefits for Small Businesses to invest in their digital capabilities.


Website, Digital Branding, Tech Upgrades & Training Boost

Australian Small Businesses are set to take on the digital world in 2022-23 with the Federal Budget’s new tax deductions.

The two policies offer small businesses with an aggregated annual turnover less than $50 million an extra 20% tax deduction on tech upgrades and digital skills training.

Designed to encourage small business investment and help with competing in the growing digital economy.

What are the two policies?
( and what can I claim? )


Small Business
Technology Investment Boost

v=For every hundred dollars invested in new technology, small businesses will recieve a $120 tax deduction.

This could possibly include…

  • web design and upgrades
  • cyber security
  • cloud computing
  • portable payment devices
  • new laptops
  • cloud based subscription services

Deductions are capped at $100,000 annually and applies to expenses from March 29, 2022 until June 30, 2023. Depreciating assets must have been used, or installed ready for use by 30 June 2023.


Small Business
Skills and Training Boost

For every hundred dollars spent on external digital skills training for staff, small businesses will recieve a $120 tax deduction.

Budget documents state that “external training courses will need to be provided to employees in Australia or online, and delivered by entities registered in Australia.”

Training of non-employee business owners such as sole traders, partners in a partnership or independent contractors is excluded.

Training expenses can include incidental costs related to the provision of training, provided they are charged by the registered training provider, such as the cost of books or equipment needed for the course. Expenses incurred between March 29, 2022 until June 30, 2024 are eligible.

The amount of the Technology Investment Boost is calculated as 20% of the total amount of eligible expenditure incurred during the period from 29 March 2022 to 30 June 2023, up to a maximum bonus deduction of $40,000 in the 2023 income year.

However, this cap essentially operates at two separate $20,000 caps ($20,000 for 29 March 2022 to 30 June 2022, and $20,000 for 1 July 2022 to 30 June 2023).

The Technology Investment Boost deduction is claimed entirely in the 2023 income year, based on eligible expenditure incurred in the 2022 and 2023 income years.

* These policies were formally approved through Government legislation in June 2023.

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