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Tech Tax Incentives | 2023 Gotax

September 15, 2023

20% Tax Incntives to help with technology for Small Business

The new technology investment incentive offers small businesses an extra 20% deduction on tech-related expenses that aid their digital operations. This broad measure covers various business costs and assets, but it might leave some wondering what they can claim.

Eligibility can be determined by asking if the expense would have been necessary without digital operations. If the answer is no, then it’s likely eligible. Here are some examples:

  • Consulting fees for digital transformation

  • Renting digital equipment

  • Repairs and enhancements to eligible assets that aren’t capital works

The purpose and connection to digital operations of a specific small business will determine the eligibility of some expenses. For instance, a multifunction printer wouldn’t qualify if it’s only used for copying paper documents. But, if it’s used to digitize and store paper documents, it would be claimable.

Recurring or new subscription costs related to your clients’ digital operations can also qualify. For instance, an ongoing subscription to a business accounting software or a new subscription for digital content used in web content development for business advertising would be eligible.

In these instances, businesses should maintain detailed records of how the expenses are related to their digital operations and all their claims.

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