Technology and Skills Boost for Small Businesses
To support small businesses in their growth and digital transformation, the Australian government has introduced two boosts. These boosts offer tax deductions for eligible technology investments and employee training. Let’s explore the key details in simple terms.
The Small Business Skills and Training Boost allows small businesses to claim a 20% tax deduction on employee training expenses. To qualify, the training should be provided by a registered training provider and be deductible under tax laws. Eligible expenditures must be incurred between 29th March 2022 and 30th June 2024. Businesses with an annual turnover of less than $10 million or up to $50 million can take advantage of this boost.
The Small Business Technology Investment Boost offers a 20% tax deduction on eligible technology investments for small businesses. To qualify, the expenditures should be incurred between 29th March 2022 and 30th June 2023. This boost covers expenses related to digital operations, including computer hardware, software, internet costs, digital media, e-commerce, and cybersecurity. Businesses with an annual turnover of less than $10 million or up to $50 million can take advantage of this boost.
When considering the boosts, it’s important to note that the skills and training boost is available until 2024, while the technology investment boost ends in 2023. To claim the deductions, the expenditures should be incurred within the specified timeframes. For the technology investment boost, assets must be used or installed by 30th June 2023. It’s also important to remember that certain costs, such as salary and wages, capital works, financing, and training for non-employees, are not eligible for bonus deductions.
Small businesses have the opportunity to benefit from tax deductions for technology investments and employee training. By taking advantage of these boosts, businesses can enhance their digital capabilities, improve productivity, and remain competitive. It’s important to ensure that eligible expenditures are incurred within the specified timeframes and meet the criteria outlined by the government.
