For many Australian businesses, cybersecurity is often seen as a necessary but costly overhead—an expense that doesn’t directly contribute to revenue. However, this perception is outdated and misleading. Investing in cybersecurity can actually provide financial benefits beyond just risk mitigation. From unlocking grants and lowering insurance premiums to increasing customer trust and enabling partnerships, a robust cybersecurity strategy can reduce business costs, drive revenue and improve your bottom line. These are some of the financial benefits of a secure business:
1. Access to Grants and Incentives
The Australian government recognises the importance of cybersecurity and offers financial incentives for businesses that take it seriously. Various grants, tax offsets, and funding programs are available to help Australian businesses enhance their cybersecurity infrastructure.
For example:
The Growing and Professionalising the Cybersecurity Industry Program (Closed): Although it recently closed, the scheme provided employers and businesses with assurance that the cybersecurity professionals they hire have the necessary skills and training. It supported applicants to enter and progress within the sector through horizontal and vertical avenues.
Defence Industry Development Grants Program – Security Stream (Open): This program aims to support national security through the provision of Defence capability. It was announced as part of the Defence Industry Development Strategy released by the Government on 29 February 2024. It is eligible to small to medium enterprises (SMEs) to establish and maintain security accreditation or controls, in line with the Defence Industry Security Program (DISP) and in accordance with the Defence Security Protection Framework. Grants between $10,000 and $100,000 are available.
Small Business Technology Investment Boost (Open): This program aims to provide small businesses an additional tax deduction to support their digital operations and digitise their operations. Businesses generally claim a deduction in the year the expenses are incurred. Under the delayed claim rule, they may have to claim a deduction for the eligible expense in their tax return for the income year in which they incurred it and claim the 20% bonus amount in a later year’s tax return.
State-Level Grants: Various states offer cybersecurity grants and funding programs, such as the New South Wales Cybersecurity Innovation Node and Victoria's Digital Jobs and Cybersecurity Skills programs.
Sector Specific Grants: There are grants specifically relevant to business sectors. For example, the new Health Cyber Sharing Network will focus on enabling Australia’s health sector organisations to collaborate and break down information silos, enabling the exchange of valuable cybersecurity threat information more quickly. To kickstart the Health Cyber Sharing Network, eligible health and medical organisations and their suppliers are offered a complimentary CI-ISAC membership for 12 months.
By securing these opportunities, businesses can offset the costs of cybersecurity investments and turn them into a financial advantage.
2. Lower Cyber Insurance Premiums
Cyber insurance is becoming a necessity, but the cost can be high—especially for businesses with inadequate security measures. Insurance providers assess risk when determining premiums, and companies with strong cybersecurity practices can qualify for lower rates.
Implementing measures such as multifactor authentication (MFA), endpoint protection, and employee cybersecurity training can significantly reduce the likelihood of a breach. As a result, insurers are more willing to offer discounts, saving businesses thousands of dollars annually on insurance costs.
3. Enabling Lucrative Partnerships
Many large enterprises and government entities require vendors and partners to meet strict cybersecurity standards before engaging in business relationships. A robust security posture can make your business eligible for high-value contracts that would otherwise be out of reach.
Consider:
B2B Partnerships: Companies prefer working with partners who won’t introduce security risks into their supply chains.
Government Contracts: The Australian government mandates cybersecurity compliance for vendors, with frameworks like the Essential Eight and ISO 27001 being key benchmarks.
Enterprise Deals: Many large organisations demand third-party risk assessments, and businesses with strong security measures are more likely to pass these evaluations.
By demonstrating compliance with cybersecurity best practices, businesses can unlock new revenue streams and secure long-term contracts.
Cybersecurity is a Revenue Driver, Not Just a Cost
At the end of the day, cyber incidents are expensive. A data breach can result in legal fines, regulatory penalties, and reputational damage—all of which translate to significant financial losses. According to IBM’s Cost of a Data Breach Report, the average cost of a data breach in 2023 was $4.45 million.
Investing in cybersecurity helps prevent these losses by:
Reducing the risk of ransomware attacks that demand hefty payouts.
Minimising downtime due to cyber incidents, ensuring business continuity.
Avoiding regulatory fines associated with non-compliance (e.g., Australian Privacy Act, Notifiable Data Breaches scheme).
There are financial benefits of a secure business. Instead of viewing cybersecurity as a cost, think of it as insurance against avoidable financial disasters. By proactively investing in cybersecurity, businesses can avoid these legal costs and ensure regulatory compliance, keeping their finances intact. Cybersecurity is no longer just an IT expense—it’s a financial strategy. From unlocking grants and reducing insurance costs to securing lucrative partnerships and increasing customer trust, a strong cybersecurity posture can directly and indirectly contribute to your business’s financial success. Rather than seeing cybersecurity as an overhead, forward-thinking businesses should recognise it as an investment with measurable financial returns. In today’s digital landscape, the companies that prioritise security will not only protect their assets but also position themselves for sustainable growth and profitability.
Comments