The Australian company, as well as small and medium-sized companies, now want to expand the depreciation and argue that standard software has now been switched to cloud-based service models.
Cloud-based services are unlikely to be depreciable as they are viewed as services rather than assets. Government investment incentives target property, plant and equipment only, not services, and are therefore not effective in promoting cloud computing services.
Enter the Business Council. The BCA urges the government to change its mind about digital services as an asset.
“We want to make sure that tax settings recognize digital investments as well as physical ones,” said Tim Reed, President of the Business Council, last week as he released new models of the benefits of digitization.
The BCA provided models from EY that showed Australia could be $ 210 billion better off over the next 20 years if the transition to a digital economy accelerated.
“The BCA recommends driving digitally …