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SMALL and MEDIUM SIZE BUSINESS OWNERS – we want to make you aware of two inclusions in the recent federal budget. The budget includes a “Technology Investment Boost” and “Skills and Training Boost”. These programs allow SMEs investing in digital adoption and training to claim $120 tax deduction for each $100 spent.
Budget Measures Budget Paper No. 2 2022–23 (Page 26 and 27)
Small Business Technology Investment Boost
The Government is introducing a technology investment boost to support digital adoption by small businesses. The boost will apply to eligible expenditure incurred from 7:30pm (AEDT) on 29 March 2022 (Budget night) until 30 June 2023.
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.
An annual cap will apply in each qualifying income year so that expenditure up to $100,000 will be eligible for the boost.
The boost for eligible expenditure incurred by 30 June 2022 will be claimed in tax returns for the following income year. The boost for eligible expenditure incurred between 1 July 2022 and 30 June 2023 will be included in the income year in which the expenditure is incurred.
This measure is estimated to decrease receipts by $1.0 billion, and increase payments by $7.2 million over the forward estimates period.
Small Business Skills and Training Boost
The Government is introducing a skills and training boost to support small businesses to train and upskill their employees. The boost will apply to eligible expenditure incurred from 7:30pm (AEDT) on 29 March 2022 (Budget night) until 30 June 2024.
Small businesses (with aggregated annual turnover of less than $50 million) will be able to deduct an additional 20 per cent of expenditure incurred on external training courses provided to their employees. The external training courses will need to be provided to employees in Australia or online, and delivered by entities registered in Australia.
Some exclusions will apply, such as for in-house or on-the-job training and expenditure on external training courses for persons other than employees.
The boost for eligible expenditure incurred by 30 June 2022 will be claimed in tax returns for the following income year. The boost for eligible expenditure incurred between 1 July 2022 and 30 June 2024, will be included in the income year in which the expenditure is incurred.
This measure is estimated to decrease receipts by $550.0 million, and increase payments by $7.0 million over the forward estimates period.
Access Cyber Security for Your Small Business
Book a talk with our cyber security specialist to discuss how you can take advantage of these benefits and meet the Australian Government’s recommended Essential 8 for cyber security.
In the meeting we will ask questions to understand your business requirements, discuss what can be implemented straight away and recommend a strategy to get your business to industry standard for cyber security.
To start, email [email protected] or call 1300 248 748 and let us know you’re interested in learning more. We also have some more information on our website BITS Cyber Security and on our blog Cyber Security Basics.