How new tax incentives could fund your clinic’s technology upgrades

    • clock-o Published
    • user Posted by Paul McCarthy

Have you been thinking about upgrading your clinic’s cyber security? Are you considering transitioning to a cloud-based service? Or, could your entire medical practice benefit from an end-to-end digital transformation?

The 2022 Federal Budget included provisions for eligible businesses to receive major tax cuts to help achieve all of the above and more. Here’s what the announcements could mean for Australian healthcare providers:

The Small Business Technology Investment Boost:

  • Businesses with an aggregated annual turnover of less than $50 million can now claim an extra 20% tax deduction on digital infrastructure expenses.
  • According to the ATO, such expenses can include cyber-security system upgrades or subscriptions to cloud-based services. Support for electronic invoicing and mobile payment devices may also be covered.
  • Expenditure up to $100,000 will be covered by the tax incentive.
  • The bonus 20% tax cut will only be applied in the upcoming 2022 to 2023 financial year. 

This will be especially relevant for clinics and practices considering moving their business to the cloud in the next 12 months or thinking about system upgrades. 

This boost is intended to encourage investment in Australia’s digital economy, and to make it easier for businesses of varying sizes to increase productivity and reduce risk

Other health news from the 2022 federal budget:

Telehealth and My Health Record

AU$23.8 million will be given to My Health Record over the next four years to improve integrations and allocate more funding to accredited practices for the temporary telehealth services they provided during COVID-19. The funding will be important for areas affected by natural disasters, so their communities can access health services online. 

Claims System Upgrades

AU$96.8 million will go to system upgrades over the next four years in Australia’s health system to limit manual processing of claims and improve claims experiences for patients and medical providers in Medicare, the Pharmaceutical Benefits Scheme, and other health-related schemes.

Embracing digital transformation is an important part of future-proofing your healthcare business, and GPsupport can help you every step of the way. For more information about how the incentives could benefit your clinic, speak to your tax agent and connect with the team at GPsupport.