Small Business Technology Investment Boost and Small Business Skills Training Boost

The Coalition government introduced on the 29 March 2022 as a part of their budget that it would continue to support small businesses through new measures. They encourage small and midsize businesses to spend more on digital tools such as software, cyber security, cloud-adoption, flexible working solutions and training courses provided to employees. Eligible businesses will be able to claim a 120% deduction on these expenses.
More information about which expenses will be eligible will become available once the Boost comes into effect. An annual cap of $100,000 will apply per income year.

Small Business Technology Investment Boost

Businesses with an aggregated turnover of less than $50 million will be eligible for the Small Business Technology Investment Boost in the period from 29 March 2022 to 30 June 2024.

These businesses will be able to deduct 120% of the costs on business expenses and depreciating assets that further support the implementation of technology in their business.

To claim the technology investment boost

For eligible expenditure from 29 March 2022 until 30 June 2022

  • Claim the costs incurred as you normally would in your 2021-2022 return
  • In your 2023 return, claim an additional 20% for the expenses incurred during this period.

 

For eligible expenditure from 1 July 2022 until 30 June 2023

  • Deduct the entire 120% for expenses incurred.

 

Small Business Skills and Training Boost

Businesses with an aggregated turnover of less than $50 million will be eligible for the Small Business Skills and Training Boost in the period from 29 March 2022 to 30 June 2024.

Similar to the technology investment boost, businesses will be able to claim a 120% deduction on eligible training courses provided to employees.

To claim the technology investment boost

For eligible expenditure from 29 March 2022 until 30 June 2022

  • Claim the costs incurred as you normally would in your 2021-2022 return
  • In your 2023 return, claim an additional 20% for the expenses incurred during this period.

 

For eligible expenditure from 1 July 2022 until 30 June 2023 and from 1 July 2023 until 30 June 2024

  • Deduct the entire 120% for expenses incurred.

 

If you would like to learn more about these incentives and how they may apply to your business, don’t hesitate to contact us on 8333 7300.