Government Support to Digitise Your PMC Business

Are you wishing to adopt digital business transformation to improve the quality of your services but worry about the cost of transformation at the same time? This new government incentive for small businesses is what you need to know.

Summary

• The Small Business Technology Investment Boost allows businesses with aggregated annual turnover of less than $50 million to deduct an additional 20% of the cost incurred on business expenses and depreciating assets that support their digital adoption
  

• Examples of eligible expenses include portable payment devices, cyber security systems or subscriptions to cloud based services.
  

• This measure will apply to expenditure incurred in the period commencing from 29 March 2022 until 30 June 2023.

An annual $100,000 cap will apply to each qualifying income year. Businesses can continue to deduct expenditure over $100,000 under existing law.

While the law in yet to be finalised, budget documents said businesses would be able to claim the bonus deduction on a range of spending, including improvements to cybersecurity systems, digital tracking for livestock, subscriptions to enhance data analytics and marketing, and a digital inventory tracking system.

What it means for small PMCs

The measures were aimed at helping small businesses become more productive and competitive. For boutique Project Management Consulting firms that want to help asset owners deliver better, faster projects but are short of budget to adopt business transformation.

Boutique PMCs often find themselves too small to justify an internal digital team. Their services based around time & materials may not justify the cost of technology adopted. With limited human resources, they are also time poor to work on R&D or business improvements.

With the government support, it is now time to deep dive into digital opportunities to differentiate your services and grow your business. Cloud-based solutions now allow your staff to operate in best practice framework for cost, risk, lifecycle & reporting. A well-planned, fit-for-purpose choice of technology will not only boost your team morale but also increase your competitive advantage to make you look good to your clients.

Visit the ATO's website for more information on the process to apply for the grant.