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As part of the Australian Government’s Digital Economy Strategy, $1 billion is being provided to support small businesses digitalise their operations with a new bonus tax deduction. SMBs with an aggregated turnover below $50 million per annum will be able to deduct an additional 20 percent of the cost incurred on business expenses and depreciating assets that supports their digitalisation. So, for every $100 a business spends on digital economy technologies such as flexible work solutions, cyber security, cloud adoption, e-commerce, or new software services, they get a $120 tax deduction.
This is a huge win for SMBs as it will help fund their digital transformation for the future. And yet most business owners are unaware of the current digitalisation incentives, whether it applies to them or how they can benefit. As the tax incentive is only available until 30 June 2023, it is simply a wasted opportunity for businesses not to capitalise on the investment boost being offered. It’s time to conduct a full business analysis, identify key areas which would benefit from digitalisation, prioritise those needs and, importantly ensure the right technology partners are selected to achieve the best possible outcomes.
Most business owners today want to invest in some form of digitalisation. Research conducted by Frost & Sullivan, commissioned by communication, collaboration and IT support solutions provider GoTo, revealed that business leaders are prioritising IT needs more than ever to ensure their businesses operate effectively. Senior leadership involvement in software purchasing was up seven percent since the start of the pandemic, and over the last two years, demands have caused IT budgets to skyrocket. Yet these budget increases cannot continue, so one critical solution is for SMBs to focus on optimising their tech stack. The question is, how to get started?
The research also found that one of the most important digital solutions to invest in, is one which ensures businesses can successfully run from anywhere with video conferencing and IT helpdesk tools being the most popular applications.
Many businesses quickly learned the value of a robust remote-work solution during the pandemic - knowing you can effectively manage phones, customers, incoming calls and employees with one simple, integrated, cost effective solution. Yet there are still many SMBs lacking in a simple, reliable and scalable solution for the hybrid and remote working world in which we now live.
To ensure you select the right technology provider/partner for your business, conduct online research, meet with each provider, ask for a demo, talk to peers and seek out expert advice, referrals and endorsements.
Lindsay Brown is the Vice President and General Manager, Asia Pacific for GoTo – a recognised leader in flexible, remote-work technology. He leads the strategy, performance and ongoing evolution of GoTo across APAC. Under Lindsay’s leadership, LogMeIn (now GoTo) was twice placed in the Top 10 Great Places To Work, in both Australia and India. His career spans 20+ years in Information Technology with a successful track record in scaling start-ups, developing emerging brands and growing established multinational technology companies.