Entities eligible for the bonus deduction 

  • 1.10-1.12 - small business carrying on a business with an aggregate annual turnover is $50 million



Expenditure eligible for the bonus deduction 

  • 1.13 - expenditure must be incurred wholly or substantially for the purposes of an entity’s digital operations or digitising the entity’s operations. That is, the eligible expenditure must have a direct link to the entity’s digital operations for its business
  • 1.14 - examples:
    • digital enabling items - computer and telecommunications hardware and equipment, software, 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; and 
    • e-commerce - supporting digitally ordered or platform enabled online transactions. 
  • 1.15 - between 29 March 2022 7:30pm AEST   to 30 June 2023
  • 1.20 - depreciating assets are also eligible - in-house software, software development pools, etc.
  • 1.22 - Repair and improvement costs for depreciating assets are eligible for the boost provided that these costs are incurred during the relevant time period.
  • 1.23 - exclusions
    • salary and wage costs; 
    • capital works costs which can be deducted under Division 43 of the ITAA 1997; 
    • financing costs; 
    • training and education costs; 
    • and expenditure that forms part of, or is included in, the cost of trading stock.
  • 1.33 - The total expenditure eligible for the bonus deduction is effectively $100,000 over the relevant time period such that entities can generally claim a maximum bonus deduction of $20,000 per relevant time period. 




Reference