Supporting businesses to go digital

Lifting digital capability and adoption to boost productivity

The Government is providing $1.0 billion to support small businesses to go digital by introducing the Technology Investment Boost.

Small businesses with annual turnover of less than $50 million will have access to a new bonus 20 per cent deduction for the cost of expenses and depreciating assets that support digital uptake, up to $100,000 of expenditure per year. Around 3.6 million small businesses are eligible to access the new boost, which will apply from Budget night until 30 June 2023. These changes will benefit small businesses by supporting them to invest in items such as an online sales platform, cyber security enhancements, cloud computing and digital tracking for livestock. The Government is also investing in digital capabilities through its Digital Economy Strategy. This will support businesses to boost productivity, become more globally competitive and generate rewarding and high-paying jobs.

Items include:

  • Portable payment devices
  • Cyber security systems
  • subscriptions to cloud-based services

Positioning Australia to be a top 10 digital economy and society by 2030.

Harley owns a furniture manufacturing company, Star Sofas Pty Ltd, which has annual turnover of $35 million and 120 employees. In April 2022, as part of an overseas expansion, Star Sofas invests $100,000 to develop an online presence and build a digital inventory tracking system. In July 2022, Star Sofas purchases multiple software subscriptions to enhance customer data analytics and marketing. Star Sofas incurs total expenditure of $100,000. The Government’s new Technology Investment Boost means that Star Sofas can deduct an extra $40,000, reducing their tax bill by $10,000. The company can use the extra money to reinvest and grow. Positioning Australia to be a top 10 digital economy and society by 2030