ATO Small Business Technology Boost: A Guide to Deductions

Boost Your Small Business: We explain how to get an extra 20% deduction for your business spend on technology items


  1. You must be a Small Business – ie. turnover less than $50million per year
  2. Eligible Expenses include:
    • Computer hardware
    • e-commerce services and subscriptions such as cloud based services
    • cyber security services
  3. TIMING – must incure the costs between 7:30 pm AEDT 29 March 2022 and 30 June 2023.
  4. GET ADVICE: Contact your Accountant now to discuss before the timeframe expires.
  5. EXAMPLE: Scroll down to see a worked example




In today’s fast-paced digital era, small businesses need to stay competitive by embracing technology. The Federal Government has finally approved legislation to enact the Small Business Technology Investment Boost, provided by the Australian Taxation Office (ATO).

In this blog post, we’ll explore how this program can benefit your small business and how to leverage it to maximize deductions.

Understanding the Small Business Technology Investment Boost:

The Small Business Technology Investment Boost is an Australian government program aimed at encouraging small businesses to invest in technology. It offers an extra 20% tax deduction for eligible assets purchased and installed within the specified timeframe. By leveraging this boost, small businesses can enhance their operations, improve productivity, and gain a competitive edge.

Eligibility Criteria:

To qualify for the Small Business Technology Investment Boost, your business must meet the following criteria:

  1. SMALL BUSIENSS – your business must have an aggregated annual turnover of less than $50 million
  2. EXPENSE – Must already be a deductible expense for your business under taxation law
  3. ELIGIBLE EXPENSE – Must be for business items
    • digital enabling items – computer and telecommunications hardware and equipment, software, internet costs, systems and services that form and facilitate the use of computer networks
    • digital media and marketing – audio and visual content that can be created, accessed, stored or viewed on digital devices, including web page design, video, podcasts etc.
    • e-commerce – goods or services supporting digitally ordered or platform-enabled online transactions, portable payment devices, digital inventory management, subscriptions to cloud-based services, and advice on digital operations or digitising operations, such as advice about digital tools to support business continuity and growth
    • cyber security – cyber security systems, backup management and monitoring services.
  4. TIMING – Eligible expenses must be incurred between 7:30 pm AEDT 29 March 2022 and 30 June 2023.


You will note that this law is retrospective, covering expenses from 7:30 pm AEDT 29 March 2022 to 30 June 2023 despite only being legislated on 22 June 2023.

This means you will need to trawl back through past spending to capture eligible expenses

Qualifying Assets:

The program covers a wide range of technology assets that can help improve your business processes. Some examples of eligible assets include computer hardware, software, printers, scanners, and digital tools. It’s essential to ensure that the assets you plan to invest in align with the ATO’s guidelines to claim the tax deductions successfully.

Claiming Deductions:

To claim deductions under the Small Business Technology Investment Boost, you must adhere to the ATO’s instructions and guidelines. It is important to keep proper records of your technology investments, including invoices, receipts, and any relevant documentation. Your tax advisor can provide detailed guidance on how to correctly claim these deductions and maximize your tax benefits.

IMPORTANT NOTE: All eligible spends are claimed in the 2023 business tax return despite teh time frame stretching back 3 months into the 2022 income tax year (29 Mar 22 – 30 June 22).

Example of the Small Business Technology Investment Boost:

Let’s consider an example to illustrate how the Small Business Technology Investment Boost can benefit your business.

Suppose you own a small graphic design agency with an aggregated annual turnover of $30 million. You are a small business ✅

In November 2022, to keep up with the latest design software and hardware, you invested $20,000 in new computers, graphic tablets, and design software licenses.

  • These items are normal deductions to your business ✅
  • This is also within the time frame for eligibility ✅
  • These are eligible digital enabling items ✅

This spend would normally be a 100% tax deduction assuming no private usage of these items.

By taking advantage of the Small Business Technology Investment Boost, you can claim an EXTRA 20% tax deduction in your business tax return. $20,000 x 20% = $4000.

This deduction can significantly reduce your taxable income, resulting in lower tax obligations and more funds available for further business growth.

Assuming you operate a company structure you would save $4000 x 25% company tax rate = $1000.00


The Small Business Technology Investment Boost offered by the Australian Taxation Office presents a valuable opportunity for small businesses to invest in technology and improve their operations. By understanding the eligibility criteria, investing in qualifying assets, and correctly claiming deductions, small businesses can leverage this program to maximize their tax benefits. Be sure to consult with a tax advisor to ensure compliance with all the necessary requirements. Embrace the power of technology and propel your small business towards success in today’s competitive landscape.

Division 293 Tax Explained in Simple Terms

What is Division 293?

The Division 293 tax in Australia is a tax rule that targets higher-income earners by applying an additional tax rate on their superannuation contributions. It aims to make the tax treatment of superannuation fairer and ensure that high-income individuals receive the same concessional tax treatment as lower-income earners.

Who Does It Apply To?

The Division 293 tax is applicable to individuals whose combined income (including taxable income and concessional superannuation contributions) exceeds a certain threshold.

For the 2022-2023 financial year, the threshold is set at $250,000.

To calculate the Division 293 tax, you need to determine the excess amount above the threshold and apply a 15% tax rate to that excess.

ATO assess you for Division 293 once you have lodged your Individual Tax Return AND your superfund(s) have lodged their returns confirming your contributions.

How to Pay?

Division 293 Assessments are issued to you as an individual. As Div293 imposes an extra 15% tax on some or all of your super contributions for a given year. 

There are 2 ways to pay:

– from your own money; or 

– by releasing money from your super

We recommend releasing money from super as the funds being taxed are sitting in super.


Let’s take the example of someone earning $240,000 with $19,000 in super contributions in the same year.

Step 1: Calculate the combined income

Combined income = Taxable income + Concessional superannuation contributions
In this example, the taxable income is $240,000 and the concessional superannuation contributions are $19,000.

Combined income = $240,000 + $19,000 = $259,000

Step 2: Determine the excess amount above the threshold

Excess amount = Combined income – Threshold
In this example, the threshold is $250,000.

Excess amount = $259,000 – $250,000 = $9,000

Step 3: Calculate the Division 293 tax

Division 293 tax = Excess amount × 15%
Division 293 tax = $9,000 × 0.15 = $1,350

So, in this scenario, an individual earning $240,000 with $19,000 in super contributions would be liable for a Division 293 tax of $1,350.

Division 293 assessments are issued to the individual in a similar way to a regular Notice of Assessment. The assessment will come via myGov or via mail. You need to deal with this straight away.

We recommend following the instructions to have money released from super to pay the assessment before the due date.

DISCLAIMER: It’s important to note that this is a simplified example and actual tax calculations may involve other factors and deductions. It’s advisable to consult with a qualified tax professional or the Australian Taxation Office (ATO) for accurate and personalized tax advice.

Link your myGov account to the ATO

By linking your myGov account to the ATO, you can now manage your tax and super affairs whenever it suits you.

In ATO online services you can

  • check the progress of your income tax return as well as
  • download your Notice of Assessment,
  • update your personal details,
  • keep track of your super and
  • arrange to pay a debt.

For details on how to connect MyGov to ATO, visit

How to create a myGov account and link to ATO

If you’re an individual or sole trader, you can manage your tax and super online.

To do this, you will need a myGov account linked to the ATO. To get started, you should have the following.

  • A myGov account using SMS,
  • myGovID or
  • the myGov code generator app as your sign in option,
  • your tax file number TFN.

And two of the following.

  • A notice of assessment received in the last five years.
  • A PAYG Payment Summary received in the last two years.
  • A super account statement from the last five years.
  • A dividends statement from the last two years.
  • A Centrelink payment summary from the last two years.
  • Or your bank account details. This must be an account you had your income tax return refund paid into last year or has earned interest in the last two years.

If you don’t have this information available, you will need to phone the ATO and get a unique linking code to complete this process.

Once you have this information ready, visit and sign in to your account.

When signed in, go to the linked services section and select view and link services. In the link a service section, select the link button to the right of Australian Taxation Office.

When you link the ATO, myGov will store your name and date of birth in your profile. If you already have a profile, these details must match, read and agree to the ATO terms and conditions. Provide your details, including your tax file, number, name, date of birth and address.

If your details have changed since you last dealt with the ATO, you will need to phone to update them before you can complete the link. Enter information carefully and accurately so that it will match your details held by the ATO.

You will also need to answer two questions from information contained in documents mentioned earlier. If you receive an error message at any time, take note of the error code and follow the link or instructions for more information. Once you’ve finished answering these questions, you’re done.

You have successfully linked your myGov account to your ATO record and that’s it. You can now manage your tax and super affairs through ATO online.