Small businesses are key beneficiaries in Australia’s Federal Budget 2022-23. Businesses with annual turnover of less than $50 million will be eligible for two key temporary tax boosts in the form of an additional 20 per cent deduction for the costs incurred on eligible business expenditure on certain technology investments and also external training courses.
Technology Investment Boost
The Government is providing $1.0 billion for a new Technology Investment Boost to encourage small businesses to go digital. Small businesses with annual turnover less than $50 million will be able to deduct a bonus 20 per cent of the cost of expenses and depreciating assets that support digital uptake. This includes portable payment devices, cyber security systems or subscriptions to cloud-based services. The boost will apply to eligible expenditure of up to $100,000 per year, incurred from Budget night until 30 June 2023.
Skills and Training Boost
Small businesses will also have access to a new 20 per cent bonus deduction for eligible external training courses for upskilling employees. The Skills and Training Boost will apply to expenditure incurred from Budget night until 30 June 2024, providing $550 million in tax relief.
Contact us if you would like to learn how your business can boost its technology investment and skills and training.
