March 29th, 2022
“A penny saved is a penny earned” – Benjamin Franklin
When you are a small growing business and the purse strings are tight, this definitely rings true. And now any Australian business that earns less than 50 million annually can ‘earn’ themselves a pretty penny when subscribing to Worknice. Here’s how.
Technology investment boost announced
In the 2022 national budget, the Australian Government released a new “Technology Investment Boost” which allows businesses to claim a bonus 20% deduction for the cost of expenses to subscriptions to cloud-based services, such as Worknice.
The boost will apply to expenditure incurred from 7:30pm (AEDT) on 29 March 2022 until 30 June 2023.
Is Worknice a cloud-based service?
Yes, Worknice is a SaaS (software as a service) product, also known as a cloud-based service.
Why has the Government released this boost?
Treasurer Josh Frydenberg said the bonus deduction was aimed at cutting the cost of going digital and backing businesses that were “embracing the digital revolution”.
With the recent shift towards remote workforces and online shopping, competition for customers has never been so fierce.
Why invest in HR tech?
Case Study: How an Australian business streamlined the onboarding process with a modern, consolidated HR platform.VIEW NOW
A small business in Iceland can get in front of potential buyers with more ease than a brick and mortar shop down on main street. The Government recognises this, and wants help local Australian businesses enhance their digital capability.
Which businesses are eligible for the technology investment boost?
More than 3.6 million small businesses in Australia are eligible to claim the bonus 20 per cent deduction. This is up to a maximum $100,000 of expenditure per year. To be eligible, annual turn over must not exceed 50 million AUD.
Every business is different – eg profitability. In order to understand if you can benefit from a tax deduction, seek more advice.