Small Business Technology Investment Boost and Small Business Skills and Training Boost

Small Business Technology Investment Boost

The boost will allow small businesses to deduct an additional 20% of the cost of expenses and depreciating assets that support ‘digital adoption’. Therefore, a business with a turnover of less than $50m will be able to receive a $120 tax deduction for every $100 spent on ‘digital enabling items’ up to $100,000 per year.

Eligible expenses include, but are not limited to:

• Computer hardware and software
• Portable payment devices
• Cyber security systems
• Subscriptions to cloud-based services
• Digital Media and Marketing
• eCommerce

For eligible expenditure incurred between 29^th March and 30^th June 2022, you claim the usual expenses in your 2022 tax return and the additional 20% in your 2023 tax return.

For expenses incurred between 1^st July 2022 and 30^th June 2023, you can deduct the entire 120% in your 2023 tax return.

This boost is set to apply to eligible expenditure incurred between the 29^th March 2022 and the 30^th June 2023.

Small Business Skills and Training Boost

The boost will allow small businesses to deduct an additional 20% of the expenditure that is incurred for the provision of eligible external training courses to their employees by registered providers in Australia.

Eligible training must meet the following criteria:

• expenditure must be for training employees, either in-person in Australia, or online;
• expenditure must be charged, directly or indirectly, by a registered training provider and be for training within the scope (if any) of the provider’s registration;
• the registered training provider must not be the small business or an associate of the small business;
• expenditure must already be deductible under the taxation law;
• expenditure must be incurred within a specified period (between 7.30pm (by legal time in the Australian Capital Territory) on 29 March 2022 and 30 June 2024); and
• expenditure must be for the provision of training, where the enrolment or arrangement for the provision of the training occurs at or after 7.30pm (by legal time in the Australian Capital Territory) on 29 March 2022.

Eligible skills and training expenditure will be claimed in your 2023 and 2024 tax returns. Expenditure incurred between 29^th March 2022 and 30 June 2023 will be claimed on your 2023 tax return.

The skills and training boost will apply to expenditure incurred between 29^th March 2022 and 30^th June 2024.