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.
Simple cost effective Small Business Returns
Fior simple small business returns Gotax offers a cost effective online service. That's gotax.com.au. And for that small business bookkeeping, you can't go past ecashbooks.com.au for simplicity and a time effective way to meet your record keeping obligations. eCahbooks also does your BAS.
Stay informed and Subscribe
Don't miss out and be the first to know about the latest news in Taxation
You have successfully subscribed to our Blog - happy reading!