Billion Dollar Tax Break for SMEs

It’s a great time for small businesses looking to start their digital transformation journey. With an increasing number of SMEs gaining growth through utilising business software and exposure through building an online presence, the federal government has implemented tax breaks in order to not only help businesses still recovering from the pandemic but also recognise the vital importance of a digital economy as the primary key to unlocking Australia’s economic future.

As part of the federal government’s 2030 Digital Economy Strategy, SME digitalisation through digital adoption has been a key factor in increasing profitability and saving time. Giving SMEs an incredible opportunity to change or find a new way to do business.

Covered under the 2022-23 Federal Budget, the government is providing a staggering $1 Billion as part of their 2030 Digital Economy Strategy, through their Technology Investment Boost policy. This will further help support SMEs to adopt digital technology through bonus tax deductions.

$1 Billion Tax Break for SMEs

Moreover, this policy can be further separated into two, (1) Small Business Technology Investment Boost and (2) Small Business Skills and Training Boost

1. Small Business Technology Investment Boost

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As an SME if you have an annual turnover of less than $50 million, you can use the Technology Investment Boost policy to get a 120% tax deduction from expenses on digital technology with an annual cap of $100,000 each qualifying income year. Businesses can continue to deduct expenses over $100,000 under existing law.

So how can you claim the ‘Small Business Technology Investment Boost’

Quite simple really, if you have any eligible expenses incurred from July 2022 until 30 June 2023 you can deduct the entire 120% in your 2022-23 tax return

What can you claim under the ‘Small Business Technology Investment Boost’

It depends on whether these depreciating assets and/or services have helped support digital transformation for your business, these include:

The policy will help you to not just invest in new computers, but also encourages you to adopt newer technologies, like a Cloud Based ERP system in an effort to maximise the potential efficiency of your business through automating manual business processes, giving you access to accurate and informative data that can be utilised to make informed business decisions.

2. Small Business Skills and Training Boost

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Additionally, as an incentive for you to invest in digital technology, $550 Million from the ‘Technology Investment Boost’ has been allocated towards providing you with the ability to invest and up-skill your employees, making your digital transformation journey easier than ever.

Similar to the Small Business Technology Investment Boost, if your business has an annual turnover of less than $50 million, you can use the policy to get a 120% tax deduction from expenses related to training courses for your employees.

So how can you claim the ‘Small Business Skills and Training Boost’

Quite simple really, if you have any eligible expenses incurred before June 30 2022 and you have claimed as usual in your 2021-22 tax return, you can claim an additional 120% for this period in your 2022-2023 tax return.

What can you claim under the ‘Small Business Skills and Training Boost’

You can claim any sort of external training, but the training must be registered by an Australian entity/entities. Expenses incurred due to In-house/On-the-job training however not included.

This will help you to invest more in upskilling your employees and if needed train new employees aswell, especially with use of any new technologies you have invested in. If you are currently trying to start your digital transformation journey with an ERP system, you will need to train your employees to make the implementation process a success.

To make this process easier, we at Triumph have partnered with CA Management to give your employees a monthly opportunity on how to use our proprietary and highly secure business software to help your business grow (For more info or to book your place please call 9470 9922 or email; support@caman.com.au).

The Digital Transformation Journey with Triumph ERP

Triumph ERP logo

The term Digital Transformation is used quite often as a buzzword with no clarity on what it is or the steps you can take to implement it, as part of your overall digital strategy. In layman’s terms, Digital Transformation is the integration of digital technology into all areas of your company, to streamline and improve traditional business processes, a transformative step that changes how your company operates and delivers value to your customers.

Knowing where, when and how to start can be stressful and often confusing, not just for you but also the internal stakeholders who are the forefront of operations in your company.

Ensure, internal stakeholders understand why your business requires such a transformation, how it would help the future of your company and your customers needs.

Remember that planning a Digital Transformation with an ERP implementation requires you to look at not where the business will be in a year, but in a decade’s time. This requires you to pick an innovative ERP system that not only offers integration but is also scalable in the future as your business grows

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An All in One Enterprise Resource Planning Solution

Triumph ERP offers a modern and customisable enterprise resource planning solution that enables you to run all the business processes within your organisation on one simple-to-use system.

Improve your financial controls and operational efficiency while keeping costs low with our comprehensive, fully integrated, and flexible design.

Designed for small and medium-sized businesses that have outgrown their basic accounting software, our ERP system doesn’t just handle the traditional accounting and bookkeeping functions – it takes a whole-of-enterprise approach to monitoring, controlling, and automating all your business processes.

Triumph ERP software is built upon a modular design, allowing it to be customised and scaled to suit needs, regardless of your industry. With the unparalleled ability to add on modules and users, Triumph ERP is the most capable and affordable entry level ERP software on the market today.

All 36 Triumph modules link together seamlessly to share data and information, creating a comprehensive and fully integrated system designed to maximise efficiency and empower better business decisions.

Whether you are looking for Core Financial, Sales, Purchasing, Inventory, Job Costing, Information Intelligence, or anything in between, Triumph ERP has the features you need to save you time and money.

So…

With these new measures brought on by the federal government, not only do you have an incentive to upskill employees but you can upskill them in software than can help you reach the true potential of your business.

There’s no better time than now to start your digital transformation journey!

An ERP solution like Triumph is highly beneficial for you as a small business owner, it has the ability to give you an overview of not just the supply chain but also your whole business, streamlining various facets of your business into a visualized dashboard that empowers you to make decisions on the fly or make decisions that can have a positive impact on your company’s growth, accompanied by taking the next step in your digital transformation journey