Small businesses to get tax breaks for digital spending

Digital spending is set to become A LOT more affordable for small businesses, after the federal government promised $1 billion in tax breaks.

This means you could deduct $120 for every $100 you spend on digital services such as web design, online sales platforms and marketing.

Deduction claims can be made on eligible digital expenses of up to $100,000 a year!

Isn’t this fantastic news for small businesses that have been hard hit by the global pandemic? Especially if you’re operating at a loss, or haven’t made enough money to justify the sweat and tears of the last few years.

The government is doing this to help businesses become more competitive in a cyber world.

When done right, digital marketing is a lifeline for businesses that normally struggle to connect with audiences.

We already know the fruit is ripe for picking, as consumers now spend even more time online. In other words, your ideal audience is waiting for you to come along and catch their attention in the cyber spaces they frequent.

If the digital tax breaks package passes as law, you won’t have to worry about how you’re going to pay for digital marketing to grow your profits. You’ll attract more people to your website and boost sales, without spending money that you can’t claim back.

Here’s what you can expect if the needed legislation gets the green light…

Small Business Technology Investment Boost:

Who does it apply for?

Small businesses with an aggregated annual turnover of less than $50 million.

What will you be able to claim?

Deduct an extra 20% on eligible business expenses for digital technology. You can make deductions for payments up to $100,000 for each qualifying income year.

When does the policy come into effect?

From March 29, 2022 (budget day)

When is the policy set to end?

June 30, 2023.

How do small business owners claim the tax breaks for technology investment?

1. At the end of the 2021-22 financial year: submit a standard expenditure claim (for eligible digital spending between 29 March 2022 and 30 June 2022).
2. Then next year, when lodging your 2022-23 tax return: claim the 20% bonus deduction for the previous 2021-22 financial year (29 March 2022 to 30 June 2022).
3. Also in your 2022-23 tax return: deduct the entire 120% for eligible digital spending between 1 July 2022 and 30 June 2023.

We help small businesses to get noticed online and build a loyal customer base:

If you’d like any support with your digital marketing, please reach out to our team.

E-Web Marketing uses strategies that deliver the highest value, because businesses shouldn’t have to spend beyond their means to get noticed online (especially during a pandemic).

For the last three decades, we’ve helped 3000 businesses to lift online conversions, brand loyalty and site traffic. You can speak with some of our clients, who’ve told us they’re happy to give transparent references.

Call 1300 785 122 or fill out this form to find out how we can help you to bolster online sales and improve your business reputation.