Time for Senate to deliver promised technology boost
10 May 2023|
A plan to extend an incentive for small businesses to invest in new digital technology has been welcomed by Australia’s largest representative of small businesses, the Australian Chamber of Commerce and Industry.
“This promised tax incentive is essential to assist small businesses in their digital transformation, with many falling behind in the digitisation amid a slew of other pressures,” ACCI chief executive Andrew McKellar said.
Provisions for the deduction are contained in the Treasury Laws Amendment Bill 4, which has been before the Senate since December last year.
“Unfortunately, this incentive is languishing in parliament despite being first promised in March 2022, and without action, it will expire at the end of June. The delay in passing this legislation has resulted in businesses owners missing out on being able to utilise the deduction,” Mr McKellar said.
Senator David Pocock has introduced an amendment that would extend the incentive, in a reduced scope until June 2024.
Under this proposal, the additional 20 per cent deduction to the cost of technology assets would be available to small businesses with an annual turnover of less than $10 million. The total bonus deduction a business could claim would be capped at $20,000.
“This incentive will help assist small businesses to adopt and upgrade new digital technologies and be more efficient, which means they can serve customers better, be more competitive and build their resilience to changing economic conditions,” Mr McKellar said.
“ACCI urges the parliament to support Senator Pocock’s amendment, which would assist around 2.4 million small businesses around Australia to bring their digital capability up to date.
“This is good policy to boost productivity – the reality is that businesses that invest in digital capability are more productive businesses.
“Small businesses are counting on what’s already been promised, the Senator’s amendment will extend this for an additional 12 months. It’s time for the Senate to make sure this happens.”
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Jack Quail | Media adviser
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