Maximising Government Incentives: A Guide for Australian SMBs

As the end of the financial year (EOFY) approaches it's a critical time for Australian small and medium-sized businesses (SMBs) to leverage government incentives.

Australia's 2.5 million SMBs are crucial drivers of innovation and productivity, contributing over $500 billion to the economy and employing 5.2 million people.

Following the 2024 Budget announcement $641.4 million has been allocated to support SMBs.

“This period offers unique opportunities for our technology partners to support their end customers in their financial strategies and driving growth. As a trusted and value-added distributor to the SMB market, Dicker Data is providing a detailed look at the key incentives and opportunities relevant to our sector and your end-customers from The Budget and ahead of EOFY."

Instant Asset Write-Off Scheme Empowering Small Businesses to Embrace Digital Spend

The Australian Government's Instant Asset Write-Off scheme has been extended until 30 June 2025, enabling SMEs with turnovers under $10 million to deduct the full costs of eligible assets valued under $20,000. This extension aims to enhance cash flow, reduce compliance costs, and stimulate investment in business-critical areas like technology.

For technology providers, this extension brings forth substantial opportunities to support customers in upgrading IT infrastructure, acquiring new equipment, or investing in innovative software and solutions.

technology partners and IT resellers can leverage the Instant Asset Write-Off Scheme and encourage SMB customers to invest in digital tools and solutions. This not only accelerates a customer's digital transformation journey, but it helps accelerate business opportunity for partners.

By leveraging this scheme, Dicker Data partners can tap into more than 100 global and local Tier One vendors across all walks of technology; hardware, software, cloud, security and IoT offerings to embrace digital transformation without immediate financial strain – for both their business and their customers’ business.

Assets with a value of $20,000 or higher (not eligible for immediate deduction) can be added to the small business simplified depreciation pool – which will depreciate at a rate of 15% in the first income year and 30% in subsequent income years.

SMB Technology Investment Boost- Supporting Deductions for Investments in Business 

SMBs with an annual turnover under $50 million can get a 20% tax deduction to boost their digital operations strategies. To qualify, expenditure must already be deductible for your business under taxation law and be incurred between 7:30 pm AEDT on 29 March 2022 and 30 June 2023.

The boost is for business expenses and depreciating assets and is capped at $100,000 of expenditure per income year. IT partners or their customers can receive a maximum bonus deduction of $20,000 per income year.

Eligible expenditure may include, but is not limited to, business expenditure on:

• digital enabling items – e.g. computer hardware, internet, software, etc.
• digital media and marketing – e.g. audio and visual on digital devices like web page design, etc.
• e-commerce – e.g. goods or services supporting digitally ordered or platform-enabled online transactions, etc.
• cyber security – e.g. cyber security systems, backup management and monitoring services, etc.

Federal Budget 2024-2025: Top 5 Key Takeaways for Tech and Australian SMBs

On May 14, 2024, Treasurer Jim Chalmers presented his third Federal Budget, outlining the Australian Government’s revenue and expenditure plans for the upcoming fiscal year. This Budget includes several initiatives aimed at bolstering the technology sector and supporting small and medium-sized businesses (SMBs). Here are the key highlights our partners should know about to help optimise customer projects and digital transformation strategies:

1) Safe and Responsible AI 

The Government will invest $39.9 million over five years to support the safe and responsible adoption of artificial intelligence (AI) technology. Key allocations include:

• National AI Centre (NAIC): $21.6 million over four years for the NAIC and a new AI advisory body, focusing on integrating AI expertise across policy development, programs, and outreach.
• AI Policy and Regulation: $15.7 million over two years to support industry analytical capability and the coordination of AI policy development, regulation and engagement activities including to review and strengthen existing regulations in the areas of health care, consumer and copyright law.
• AI National Security: $2.6 million over three years to address AI-related national security risks. With Dicker Data’s free AI Compass for Businesses Report, partners can better understand their own and customer’s digital maturity level with personalised ideas for starting an AI journey with affordable and easy-to-use solutions.

2) Staying Secure Online 

The Australian Government is supporting SMEs to strengthen their online security as they embrace and continue to adopt digital opportunities. Key initiatives include:

• Cyber Wardens program: $23.4 million for the Cyber Wardens program to provide free, online training for SMBs.
• Small Business Cyber Resilience Service: $11.1 million invested to help SMBs build their cyber resilience and support cyber incidents.
• Cyber Health Check: $7.2 million for online interactive tools that enable SMBs to assess their cyber security maturity.
• Ransomware Playbook: Giving guidance on how to prepare for, respond to and recover from ransomware or cyber extortion incidents.

3) Strengthening R&D Policies to Support Investment in New Technologies and Capabilities

The government is undertaking a strategic examination of Australia’s research and development (R&D) policies to ensure alignment with national priorities and enhance innovation outcomes. This initiative aims to create a more robust and effective R&D framework.

4) Supporting STEM Workforce Diversity to Address the Skills Shortage

An investment of $38.2 million over eight years will support a diverse and skilled science, technology, engineering, and mathematics (STEM) workforce. This funding will expand existing programs focusing on women, First Nations people, and other underrepresented groups in STEM fields.

5) Combating Scams and Fraud

The Australian Taxation Office (ATO) will receive $187 million to combat tax and superannuation fraud, including real-time tools to block suspicious activity and a taskforce to recover lost revenue. Additionally, $23.3 million is allocated to maintain the e-invoicing network to prevent email-based scams.

Dicker Data represent the world’s leading cybersecurity technology vendors. Partners can work with our team of experts to get teams on the same page with cybercrime and fraud risk. To learn more, reach out via sales@dickerdata.com.au.

Land your EOFY Deals with the Support of Dicker Data - Your Strategic Partner

May through June 30th is busy for everyone. With technology continually becoming more complex, and the expectations of your end-customers higher than ever, keeping across the latest trends and technological advancements is easier than ever with the support of your local, Australian distributor, Dicker Data.

Take advantage of Dicker Data’s extensive expertise, logistics, financing and more. We have plenty of stock and offer attractive partner incentives for deals closed before June 30th. You can also be rewarded for doing business with Dicker Data this EOFY through our partnership with Qantas Business Rewards.

As your strategic advertiser we’re here to support you as part of your team, every step of the way.

To learn more about the Government incentives and how you can maximise impact for you and your customer’s business, reach out to your local Dicker Data representative, or email sales@dickerdata.com.au.