Federal Budget 2022: Digital technologies tax deduction huge win for Australia's economy

Leading business management platform MYOB celebrates the Federal Government announcement that it has pledged to support Australia’s small businesses in their adaptation of digital technologies through tonight’s Federal Budget.

Tonight’s immediate investment in cloud computing will see half a million - or one in five - of Australia’s small businesses who are currently under digitised incentivised to adopt cloud solutions at pace for the betterment of their business, across vital process enhancements such as eInvoicing and cyber security.

MYOB’s Chief Employee Experience Officer Helen Lea says MYOB has been advocating for this measure since the start of 2020, highlighting the $10.5 billion return the economy will return as a result of adopting a tax incentive for digital adoption.

“We are delighted with today’s announcement from Federal Government that they will support Australia’s small businesses in reaching their online potential. This incentive, which will see SMEs garner a $120 tax deduction for $100 spend, will provide rocket fuel to Australia’s 2.4 million small businesses through essential digital investment to ensure their future in the Australian economy.

“This announcement is huge news for Australia’s small businesses. Overcoming our gaps in digital capability, which could be life threatening, enables our nation to make leaps and bounds to digitise. SMEs now have an additional ticket to play in the future of our country.”

Further, the Budget includes an allocation of a 20% deduction in external training for small businesses in skills including digital, with a particular emphasis on regional Australians. MYOB has equally highlighted the opportunity afforded by upskilling SMEs in digital fluency, and is delighted to see the investment in this space.

“Businesses with an advanced level of digitisation are 50% more likely to increase revenue*, eight times more likely to create jobs** and seven times more likely to scale*. That’s why we’re so passionate about tonight’s investment in the digitisation agenda.

“The government's digital adaptation strategy will drive substantial economic gains for Australia, with solid investment in areas we know will make a difference for the digitalisation of SMEs. With small businesses contributing 35% of Australia’s economy, this is an essential step to assist these businesses in entering the digital ecosystem.”

MYOB calls out the following core themes as wins for small business:

Investment in digitisation and cyber security