Small business tax incentives for training and upskilling employees and improving digital and tech capacity are back on the table.
The Albanese Government has confirmed its commitment to implementing the two tax incentives aimed at supporting small businesses:
The Technology Investment Boost and the Skills and Training Boost were announced in the 29 March 2022 Federal Budget but remain unlegislated.
Small businesses with an annual turnover of less than $50 million will be able to claim a ‘bonus’ 20% deduction for eligible expenditure on:
- external training of employees until 30 June 2024; and
- the uptake of digital technologies until 30 June 2023.
The incentives will be backdated to 29 March 2022.
|What is the Small Business Technology Investment Boost?
Small businesses (with aggregated annual turnover of less than $50 million) will be able to deduct an additional 20 per cent of the cost incurred on business expenses and depreciating assets that support their digital adoption, such as portable payment devices, cyber security systems or subscriptions to cloud based services..
Businesses may continue to deduct expenditure that is ineligible for the bonus deduction under the existing tax law. We will provide further details on eligible expenses once the law has passed.
An annual $100,000 cap will apply to each qualifying income year. Businesses can continue to deduct expenditure over $100,000 under existing law.
What is the Small Business Skills and Training Boost?Small businesses with an aggregated annual turnover of less than $50 million will be able to deduct an additional 20% of expenditure incurred on eligible training courses provided to employees.
Businesses may continue to deduct expenditure that is ineligible for the bonus deduction in accordance with the existing tax law.
The ATO website has further information about these schemes and how to claim. Learn more
These incentives are not yet law. If you have spent, or are considering spending, on training or digital technology, please contact our team on 03 9708 8801 or email firstname.lastname@example.org for further information and an update.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
The information contained within this document is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Robinson Voss Partners (RV Partners) strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.