SMEs encouraged to invest in new technology ahead of EOFY

digital evolution, tech

As the end of financial year (EOFY) looms, small businesses are being encouraged anew to invest in vital new technology to take advantage of the federal government’s Small Business Technology Investment Boost.

Under the said measure, small and medium businesses with an annual turnover of less than $50 million will be able to deduct an additional 20 per cent of costs incurred on business expenses that support their digital adoption, should new laws be passed by the new Labor government.

Costs incurred from 29 March are eligible for the programme. Cyber security systems, subscriptions to cloud-based services, and marketing communications technology software are some examples of what can be claimed up to a cap of $100,000 for each qualifying income year. Businesses can continue to deduct expenditures over $100,000 under the existing law.

Messaging platform MessageMedia is supporting the measure and is encouraging small businesses to take part.

“The Small Business Technology Investment Boost is an important incentive for small to medium businesses who may be in the process of digitising their systems,” MessageMedia Chief Financial Officer Damien Tabor said. “We saw various industries, from professional services to retail, realise the importance of transforming their technology throughout COVID-19. A tax boost would help these businesses take further advantage of the benefits of SaaS, work more efficiently, and compete with the larger players in their fields.”

Detailed information for small businesses interested in the The Small Business Technology Investment Boost is available here.