Federal Budget incentives you need to know about before EOFY

The Australian Federal Government released its 2021-22 Budget in May and undoubtedly, the central theme was pandemic recovery with a strong digital focus.

Tony Sloan, Dicker Data Tax Partner from BDO Australia said, "This year’s budget was quite extraordinary, for extraordinary times. As part of Australia’s digital economy strategy, the Government is encouraging big spend on IT with supported funding. Businesses of all sizes are in a position to take advantage of the initiatives and build a positive and digitally enabled post-pandemic future.”

Investing almost $1.2 billion in Australia’s digital future through the Digital Economy Strategy, Prime Minister Scott Morrison said, “Every business in Australia is now a digital business,” adding that the investment delivers "a modern and digital economy to drive Australia's future prosperity."

Targeted at assisting businesses get back on track, it supports a range of technology incentives including cybersecurity, artificial intelligence, digital skills, data, SME digitisation, investment incentives, and enhancing government service delivery.

As businesses move forward, adapting to change and future proofing themselves, the need for technology solutions has never been greater. Dicker Data is working with our reseller partners to help them navigate Government incentives and providing access to EOFY promotions and opportunities across our portfolio of leading global vendors.

From bundled deals, cash back VISA cards and earning Qantas Frequent Flyer Points, Dicker Data is supporting our partners to become more competitive, bridge skills gaps through training and enablement, and lift productivity, efficiency, and profitability this end of financial year.

Here is what you need to know about the budget and to maximise your EOFY tax planning.

Federal Budget incentives support tech investments

1. Instant Asset Write-Off Scheme

Recognised as one of the big ticket items for SMEs in last year’s federal budget, the Australian Government has extended the Instant Asset Write-Off scheme by 12 months, from June 30, 2022 until June 30, 2023.

Businesses with an annual turnover under $5 billion can take advantage of Instant Asset Write-Off, for all IT investments. Qualifying businesses within our partner network can claim the full value of all new eligible depreciable assets, at any value that are first used or installed before June 30, 2023. Claims on full deductions for the cost of improvements made to existing depreciable technology assets are also available.

Tony said “Essentially the scheme is an accelerated depreciation program that enables Dicker Data partners to claim a tax deduction for the full value of a purchase, instantly and after use, rather than claim depreciation amounts over several years. Partners have the opportunity to bring forward spending on new assets by claiming full tax deductions upfront, and thereby reducing the amount of tax they pay.”

The extended scheme provides partners with the opportunity to work with Dicker Data’s expert teams to review, advise and upgrade their technology environments from software solutions through to hardware and infrastructure.

2. Loss carry-back
As with the asset write-off incentive, the loss-carry back scheme is extended for 12 months, until June 2023 and available to businesses with aggregated turnover of up to $5 billion.

The loss-carry back scheme is a government initiative supporting the post-pandemic recovery of the SMB market. The policy allows businesses to utilise tax losses to offset previously taxed profits, enabling eligible companies to lodge their 2022-23 tax return, offset previously taxed profits from as far back as their 2018-19 income year and receive a tax refund.

The value of the refund is limited, as the amount carried back cannot be more than the earlier taxed profits. Companies that opt not to use this measure can continue to carry losses forward.
Tony said, “The loss carry-back scheme works alongside the asset write-off scheme to encourage businesses to maximise their investments in key assets like technology equipment, software and hardware. Australia is on a digitally advanced journey and the scheme provides eligible Dicker Data partners access to the tax value of losses generated by full expensing deductions.”

Leveraging the scheme, partners can work with Dicker Data to put them in a stronger position to reinvest tax refunds back into the business, boost digital transformation initiatives and maximise return on investment.

EOFY Opportunities and Promotions

2021 presents an unparalleled opportunity for the entire technology sector. Recently named Hardware, Software and Homegrown Distributor of the Year at the 2021 ARN Innovation Awards, Dicker Data is perfectly positioned to help SME’s build a stronger digital ecosystem, innovative culture and guide partners through the next phase of reinvention. Tony said, “The world is reinventing, but I’m seeing Dicker Data drive the reinvention.”

Dicker Data’s team of experts work closely with you as trusted tech advisors to drive and facilitate the adoption of new, cutting edge technologies needed to survive and thrive in the next phase of economic recovery.

As Australia's leading value-added distributor of IT hardware, software, cloud and emerging technologies, we proudly offer our reseller partners exclusive access to EOFY promotions on an extensive portfolio of products and services from the world’s leading technology vendors.