The government’s new tax incentives making it easier to depreciate software will help big businesses invest in their own software development but will do “bugger all” for Australian software companies and small and medium businesses, and may even create perverse incentives for large companies to invest in the wrong type of software, industry experts say.

IBRS advisor Joseph Sweeney, who works with numerous large organisations on their technology strategies said the policy was a positive step in recognising the need to increase development of a local digital services economy, but would do little to raise productivity in the small- and medium-sized business market, which accounts for half of Australia’s workforce. Dr Sweeney is midway through conducting a study into national productivity gains from Cloud services, and said the early data showed that introducing Software-as-a-Service solutions to small and mid-sized organisations was the quickest way to get tangible productivity gains.as
 
“By only allowing for offset in assets like CapEx in IT infrastructure and software, this policy has the potential to skew the market back towards on-premises solutions. It will certainly make the ‘total cost of operation’ calculations for moving to the Cloud less attractive,” Dr Sweeney said.
 


Joseph Sweeney

About The Advisor

Joseph Sweeney

Dr. Joseph Sweeney is an IBRS advisor specialising in the areas of workforce transformation and the future of work, including; workplace strategies, end-user computing, collaboration, workflow and low code development, data-driven strategies, policy, and organisational cultural change. He is the author of IBRS’s Digital Workspaces methodology. Dr Sweeney has a particular focus on Microsoft, Google, AWS, VMWare, and Citrix. He often assists organisations in rationalising their licensing spend while increasing workforce engagement. He is also deeply engaged in the education sector. Joseph was awarded the University of Newcastle Medal in 2007 for his studies in Education, and his doctorate, granted in 2015, was based on research into Australia’s educational ICT policies for student device deployments.