Under the Technology Investment Boost, small businesses with an annual turnover of less than $50 million are able to claim a 120% deduction on costs associated with supporting their digital adoption, including expenses related to strengthening cybersecurity through products such as MailGuard. 

To clarify, Treasurer, Josh Frydenberg stated that “every hundred dollars these small businesses spend on digital technologies like cloud computing, eInvoicing, cybersecurity and web design will see them get a $120 tax deduction.”  

There are approximately 3.6 million Australian businesses under this threshold that could be eligible to claim this deduction, which covers expenditure incurred between 29th of March 2022 and 30th of June 2023. An annual spending cap of $100,000 will be applied for each business, and it’s estimated the boost will cost the government $1.6 billion in tax revenue.  

In a recent analysis by Deloitte, it was noted that “across Australia there are 1 million businesses at the basic and intermediate levels of digital engagement who need help moving up the ladder”, with costs being nominated as the main barrier for digital adoption.  With the introduction of initiatives such as the Technology Investment Boost, this barrier is reduced, and small businesses will hopefully be more inclined to embrace digitalisation.  

You can find further details on the Technology Investment Boost here.  

How to claim the Technology Investment Boost 

For eligible expenditure incurred between 7:30 pm AEDT 29 March 2022 until 30 June 2022: 

• Claim the expenditure as usual in your 2021–22 tax return, and 
• Claim the additional 20% bonus deduction for this period in your 2022–23 tax return. 

For eligible expenditure incurred from 1 July 2022 until 30 June 2023: 

• Deduct the entire 120% in your 2022–23 tax return. 

Fortify your defences

No one vendor can stop all threats, so don’t leave your business exposed. If you are using Microsoft 365 or G Suite, you should also have third-party solutions in place to mitigate your risk. For example, using a specialist cloud email security solution like MailGuard to enhance your Microsoft 365 security stack. 

 For more information about how MailGuard can help defend your inboxes, reach out to our team at expert@mailguard.com.au.      

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