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Cru Software Blog

SME tax break - what it means: Here's what you need to know

Did you hear?

It's the talk around the nation. In this year's Federal Budget, the government will introduce a technology investment boost that will apply to eligible expenditures. The program is designed to motivate SMEs to invest in digital or subscribe to cloud-based services. 

Here's what you need to know about this program and how it can benefit your business.

What does it mean?

The digital and Skills Tax Boost will lower the barriers to going digital by encouraging businesses with less than $50M annual revenue to invest. This initiative enables a 'bonus' 20% tax deduction on expenses, including subscriptions to cloud-based services. In its simplest form - this means a $120 tax deduction for every $100 spent on digital tools and training. 

 

A $120 tax deduction for $100 spend on digital tools and training

 

Are there any conditions attached?

 A new initiative from the government, of course, there are conditions!

Although discussions and measures are still ongoing, the initiative hasn't yet been passed into law. Even so, given the hype, the time to begin your budget process is now. Kick off a new project or use this initiative to support an existing business case for digital transformation.

 The important items to note are:

  • Applies to eligible expenditure incurred from 7:30 pm 29 March 2022 - 30 June 2023
  • It is not yet passed into law
  • Keep in mind that the additional deduction on any costs incurred in FY22 cannot be claimed until FY23.

 Also, remember that if you want to apply the TFE, the asset needs to be installed and ready for use by 30 June 2023, so watch out for those lead times on capital assets, and plan ahead!

 

The time to start building your business case is NOW!

 

Who can get it?

Small businesses (those with an annual turnover of less than $50 million) will be entitled to deduct an additional 20% of the cost incurred on business expenses and depreciating assets that support digital adoption, such as subscriptions to cloud-based services. There is an annual cap of up to $100K, meaning that a maximum spend of $100K will entitle a small business to a $120K deduction. 

What other benefits are available?

This increased digital adoption will ensure SMEs have the tools to remain competitive while securing billions for the Australian economy. It also allows SMEs to invest in technology to better their businesses and remain relevant in industry.  And it will significantly increase funding to assist small businesses to improve their capability and capacity to digitally transform.

If you’ve been holding revamping your outdated legacy rostering or scheduling systems, now could be the perfect time to begin the conversation. Let’s see how we can help streamline your workforce capability and take advantage of this incentive. 

If you'd like to start the conversation about how to digitise your workforce, please reach out to our team.
 

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Overview 
About Us

Cru Software provides innovative rostering software solutions that help businesses automate their rostering processes. Our goal is to make the rostering process as simple as possible so you can spend less time worrying about rostering and more time focusing on what matters: running your business.

What is the solution?

Create efficient rosters at the click of a button and notify staff automatically.

What is Cru rostering software?

Cru Software's powerful online rostering system makes the rostering process seamless.

What is a smart roster?

Cru Software's smart roster feature uses the latest AI techniques to automatically create rosters at the click of a button.

Compliance?

Compliance begins with the rostering process, ensuring safety with inbuilt audit capabilities.  

What is demand-based rostering?

Our demand-based rostering feature will automatically roster on the right number of staff, based on predicted demand.