“How much should I be spending on IT?” is one of the most common questions Perth business owners ask us. Too little and you're exposed - to downtime, cyberattacks, and hardware failure. Too much and you're wasting money on complexity you don't need. Here's how to think about it.
Build a Budget from Your Actual Requirements
There is no single verified Perth-wide percentage or per-user budget that fits every business. Start with an inventory of users, devices, software, servers, sites and critical workflows. Separate recurring costs from projects and replacements.
1. Ongoing IT Support
Our Managed IT Support starts from $99 and Managed IT & Security Complete from $199 per user/month + GST. Ten users cost from $990/month for Support or $1,990/month for Complete, plus GST and separately quoted items. Support hours, device coverage, limits, onboarding and minimum commitments are agreed in writing; a monthly plan does not imply unlimited support.
Both plans cover one supported desktop or laptop per user. Support includes next-generation antivirus; Complete upgrades protection to managed detection and response and includes Microsoft 365 cloud-data backup, security awareness training and phishing simulations, and managed email signatures. Endpoint backup is separately quoted for both plans.
2. Software and Subscriptions
Budget Microsoft 365 licences and industry software separately. Check current licence prices, renewal dates, commitment periods and active users. Management of a subscription and its licence cost are different budget items.
3. Security and Data Protection
Confirm which controls your support package covers and avoid paying twice for the same capability. Our separately quoted Microsoft 365 cloud-data backup is $15 per user/month + GST, workstation backup is $20 per device/month + GST, and server backup starts from $60 per server/month + GST. Additional storage is quoted separately. Managed security awareness training is $12 per user/month + GST.
Ask your broker for an insurance quote based on your business and declared controls. Do not assume a particular premium or discount.
4. Hardware and Projects
Plan replacements using device age, warranty, performance, security support and business requirements. As an illustrative calculation, replacing a $30,000 fleet over four years implies a $7,500 annual reserve; this is a planning assumption, not a recommended cycle or hardware quote.
Compare Cost with Business Impact
Estimate downtime using your own affected staff, hourly costs, lost transactions and recovery requirements. Compare written proposals against scope and responsibilities rather than an unsupported market average.
Frequently Asked Questions
What percentage of revenue should a small business spend on IT?
Build your budget from your systems, support requirements, software and replacement plans. A percentage of revenue can be a tracking measure, but this guide does not establish a market benchmark.
Is a per-head IT budget more useful than a percentage of revenue?
Per-user pricing helps compare ongoing support, but licences, servers, projects, and coverage limits also need their own budget. Managed IT Support starts from $99 per user/month + GST. Managed IT & Security Complete starts from $199 per user/month + GST and upgrades basic endpoint protection to advanced security with managed detection and response, alongside Microsoft 365 cloud-data backup, security awareness training and phishing simulations, managed email signatures, and priority remote support within agreed response targets. Both cover one supported desktop or laptop per user. Support includes basic endpoint protection with next-generation antivirus. Endpoint backup is separately quoted for both plans.
Why does hardware need its own recurring budget line?
Because computers have a practical working life of around 4 to 5 years, treating a hardware purchase as a one-off cost usually means the whole fleet ages out at once and creates a large unplanned expense later. Budgeting a portion of your total hardware value each year spreads that cost out and avoids the surprise.
Where do Perth small businesses most commonly underspend on IT?
Backups and security awareness training are the two areas we see skipped or under-resourced most often. Both are relatively inexpensive compared to what they protect against, and skimping on either tends to show up as a much larger cost later if something goes wrong.
Our IT strategic planning service includes budget forecasting as part of a 1-3 year technology roadmap for your Perth business.
IT Strategic Planning →Want a clear picture of what your Perth business should be spending on IT?
Call 0433 087 091 - we'll review your current IT setup and give you an honest, itemised recommendation with no obligation.
Book a Free IT ReviewFor related reading, see our guides to Getting Cybersecurity Budget Approved by Your Board or Owners, IT Strategy vs Managed IT: Which Does Your Business Need?, and The Real Cost of IT Downtime.