The recent Federal Budget announcements detailing additional boosts for businesses investing in digital operations, skills and training has now been passed into law after receiving Royal Assent on the 26th June 2023. The boost provides small businesses with an additional 20% tax deduction on eligible expenses.
Small Business Technology Investment Boost
Small businesses can deduct an additional 20% of expenditure incurred on a number of business expenses including new technology, cyber security systems, cloud-based service subscriptions or eInvoicing. This measure is aimed at boosting the productivity of businesses, improving digital operations and creating a safer digital environment.
This measure applies to any expense incurred from the 29th March 2022 until 30th June 2023 and will be included in the 2023 tax return. An annual cap of $100,000 will apply to each qualifying income year with a maximum bonus deduction of $20,000.
Skills and Training Boost
An additional 20% deduction will also be provided to eligible small businesses for external training courses delivered by registered training providers. It relates to the provision of training to the employees of the business and can include incidental costs that are charged by the training provider. A list of registered training providers can be found at: https://www.yourcareer.gov.au/learn-and-train/training-providers
This incentive applies to expenditure incurred from 29th March 2022 until 30th June 2024. There are a number of rules regarding when the deduction can be claimed as set out in the link below.
Contributed by Jordan Williams.
