Federal budget provides small business tax breaks for cyber security

Federal budget provides small business tax breaks for cyber security

Small businesses will be able to obtain a further 20 percent from the cost of cloud services and cyber security systems, as the federal government tries to accelerate digital adoption.

More than 3.6 million small businesses with an annual turnover of less than $50 million will be able to claim a bonus 20 per cent deduction for the cost of expenses and depreciating assets, up to $100,000 of expenditure per year.

Eligible expenditure includes items such as portable payment devices, cyber security systems and subscriptions to cloud-based services.

The boost will apply to expenditure incurred from 7:30pm (AEDT) on 29 March 2022 (Budget night) until 30 June 2023.

“From tonight, every hundred dollars these small businesses spend on digital technologies… will see them get a $120 tax deduction,” treasurer Josh Frydenberg said during his budget speech.

“The boost for eligible expenditure incurred by 30 June 2022 will be claimed in tax returns for the following income year,” budget documents state.

“The boost for eligible expenditure incurred between 1 July 2022 and 30 June 2023 will be included in the income year in which the expenditure is incurred.”

https://ministers.dese.gov.au/robert/digital-and-skills-tax-boost-small-business