With the 2022 federal budget having just been announced comes the good news of a major technology investment boost for small businesses.
The government has identified that technology is vital to the success of our economy (better late than never!) The boost will have a positive impact on small to medium businesses across the country, and we can expect to see further digital advancement and transformation in the years to come.
This means it's more important than ever to continuously innovate, adapt and leverage new technology or experienced digital guidance in order to remain competitive and yield as much potential from your investments to-date as possible. There’s never been a better time to take your business to the next level with technology and fortunately, the process is quite straight-forward.
What is the Technology Investment Boost?
The Technology Investment Boost comes in response to the rapid digitalisation we have seen over the past couple of years. Eligible businesses will now be able to deduct a further 20% of the cost of expenses and depreciating assets that assist in digital growth and adoption within their business.
For example, this can include things like:
- Integrating cloud-based systems
- Converting to or improving online sales/eCommerce platforms
- Adopting or improving cyber security systems
- Implementing business intelligence for sales, marketing, manufacturing, inventory, financial, management and other business operations
- CRM & Sales Automation
- Integrating portable payment devices
- Web design
From 29 March 2022 to 30 June 2023, businesses will be able to claim tax back on any eligible purchase of up to $100,000. If you want to make a claim for the current income year, you’ll need to make the purchase before 30 June 2022. Otherwise, you’ll have to wait until the following income year (22-23) to make a claim.
Are you eligible?
To be eligible, your company needs to have an aggregated turnover of less than $50 million. This means there will be around 3.6 million businesses that can claim the Technology Investment Boost.
Why you should invest in technology
The fact that the government is offering you a considerable compensation on technology alone is a compelling reason to invest. However, there are so many other reasons you should be upgrading your tech.
Technology has never been more important for businesses that want to remain competitive. Technology can help you automate manual processes and boost efficiencies like never before, enabling you to achieve so much more, whilst also saving time, money and precious resources. Not only that, it can also help you drive top-line growth through scalable marketing automation and effectiveness in conversion rate optimization (CRO) to reduce your cost per acquisition (CPA).
Technology can help your business:
- Minimise costs and increase revenue
- Provide more accurate data for better decision-making
- Improve your customer experience with an omnichannel connectedness
- Improve your operations and employee experience and take away the pain of low value activities\
- Improve supply chain, inventory management and last mile delivery
- Drive innovation, automation and productisation
- Improve communications and drive real-time insight
Take your business from good to great
The team at BlueRock Digital are experts in all things digital. Whether you’re looking to integrate a business intelligence platform, automate your systems , upgrade your e-commerce store, or generate new leads or customers with digital marketing, we can help you take advantage of the boost to take your business to the next level.
For further information on the process and tax implications for your company, BlueRock Accounting offers advisory solutions that can help you drive growth and profit from the Technology Investment Boost.
To find out more, get in touch.
