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Your New Website Tax Write-off Has Never Been Juicier (1 min read)

How the 120% Digital Tech Tax Rebate can Benefit your Business.

 

What is on offer?

The latest budget announcements have given Australian SMEs the capacity for digital development and training. With an additional 20% tax deduction (on eligible expenses), the digital regions of your business can now claim a 120% tax deduction when the financial year ceases. 

 

Treasurer Josh Frydenberg said:

‘For every $100 a small business spends on training their employees, they will get a $120 tax deduction.’ 

(Up to $100K)

 

Strategic Digital Training and Consultancy is now available at a 120% tax deduction; develop the skill base within your business and create a more sustainable operation. 

 

What can I claim?

The 120% tax deduction offers digital upskilling and creates avenues for strategic digital management to become a key area of your business.

What is eligible for the 120% tax deduction?

  • Portable Payment Devices
  • Cyber Security Systems
  • Cloud-Based Service Subscriptions
  • New Hardware (e.g. Laptop)
  • Website Design
  • Upskilling & External Training in Digital & Technological Fields

An Australian registered entity must provide the services eligible for training (like us!).

 

What can’t I claim?

Due to the stipulations regarding external training, in-house training is not eligible. The service must be an external development, upskilling the internal of your business. 

This, unfortunately, means that sole traders are not eligible for the development deductions.

 

When do the policies commence, and when to claim?

The policies are in effect as of their announcement – March 29 2022.

The technology package is set for a June 30, 2023 expiration.

The training package will remain until June 30, 2024.

The claiming process is resolved through a general expenditure claim. The 20% will be attributed to the 2022-2023 financial year for the tech package and an additional year for the training package.

 

 

Say Hi

 

General

[email protected]

 

New Business | Simon Masters

[email protected]

+61 421 224 159

 

 

 

 

Additional Information

The deductions are not yet legislation and thus are subject to change. However, electoral pressure is the looming force behind the concrete deductions, and the outcome will determine policy progression.

Disclaimer; Masters Management Consulting does not ever provide personal or business financial/taxation advice. We always encourage you to seek your own professional advice from an accountant or financial professional.