Tax deductions for small businesses to digitise their operations

A tax incentive that allows eligible small businesses to claim an additional 20% bonus tax deduction on eligible technology expenditure to support and digitise their operations.

The bonus applies to business expenses and depreciating assets incurred in the specified period and is capped per income year.

Small business entity with aggregated annual turnover of less than $50 million for the income year in which the expenditure is incurred.

Expenditure must already be deductible for the business under taxation law.

Expenditure must be incurred between 7:30 pm AEDT on 29 March 2022 and 30 June 2023.

If the expenditure is on a depreciating asset, the asset must be first used or installed ready for use for a taxable purpose by 30 June 2023.

The boost is capped at $100,000 of expenditure per income year (maximum bonus deduction $20,000 per income year).

Eligible expenditure examples provided on the page include digital enabling items, digital media and marketing, e-commerce support, and cyber security.