Huge tax win for Australian small businesses
Published Wednesday, March 30, 2022.Be rewarded with huge tax deductions for investing in your businesses’ digital technologies!
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Big tax announcement from the Australian Government
Under changes announced on the 29th of March 2022 by the Australian Federal Government, Australian Small businesses will be eligible for a tax deduction of $120 per $100 spent on the adoption of digital technologies. 1 2 3 These tax deductions are claimable annually, on spending up to $100,000 from the date of announcement to June 30th, 2023. Small businesses with annual turnovers of under $50 million will be eligible, applying to roughly 3.6 million Australian businesses. 1
With these announcements, it’s now easier than ever for small businesses to join the digital revolution and leverage the significant benefits of cloud computing and improved digital security. These tax deductions are very generous and should enable all kinds of businesses to get on board; ensuring their digital presence is secure and improving their digital capability and national and global competitiveness.
What is covered?
The Australian Federal Government explains that tax deductions for digital transformations will apply to things such as:
- Cloud Computing
- E-invoicing
- Cyber Security
- Web Design
The tax breaks will also affect business expenses and depreciating assets that are implemented to support the adoption of new digital technologies. Items such as portable payment devices, cyber security systems and even subscriptions to cloud-based services will all be eligble. 1
What benefits can cloud services provide?
Why should your business consider utilizing cloud-based services? Well, there are a huge number of benefits, but a few include:
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IT Cost Savings: Leave the infrastructure management to someone else, you won’t have to manage the upkeep of these services, leading to a saving for you!
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Highly scalable: Cloud computing is highly scalable, so as your business grows and your projects ebb and flow, these services can be scaled up and down as your requirements change, easily.
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Top security: Security is a top priority for a cloud provider, trumping most in-house security solutions. Meaning you can be sure your data is safe.
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Remotely accessible at all times: Cloud computing enables data accessibility via smartphones and devices, meaning you can get access to what you need, all the time, from anywhere.
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Prevent data loss: Cloud services often have access to significant data loss prevention tools and systems. This means, that when you adopt a cloud service, your data is safe from accidental deletion and more.
How will investing in cyber security help?
Not investing adequately in your cyber security can be detrimental to your business. These days, as technology becomes more entrenched in our everyday lives, the potential for hackers to directly attack our digital footprint increases all the time. So, what are some of the benefits of investing in your business’ cyber security?
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Improve your business reputation: Customer sentiment is tied closely to how safe they believe their data will be in your hands. Improving your security can help to solidify your business reputation and keep your customers happy!
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Maintain business continuity: Cyber-attacks can be debilitating for businesses of all sizes, though, smaller businesses suffer more as they tend to have fewer resources to deal with such attacks. Cyber security systems help your business identify attacks, repel them and recover quicker, leading to less downtime.
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Ensure you are compliant: Cyber security compliance only becomes more important as time goes on. If you store and manage client data, you must protect that data from malicious parties. Failing to do so can be costly, investing in Cybersecurity early will save you in the long run.
How can Lumity help?
Get in touch with our experts by booking a free consultation below, we’ll help you take advantage of this huge cost saving opportunity.
Or, Call us now on 1300 LUMITY if you want to join the digital revolution!