As part of the 2022–23 Financial plan, the then Government announced a 120% tax deduction for expenditure by small and medium businesses on technology, or skills and training for staff. The Skills and Training Boost is intended to apply to expenditure from Budget night, 29 March 2022 until 30 June 2024. However, businesses will not be able to claim the deduction until the 2023 tax return.
Two Business Boosts
These Two business investment ‘boosts’ will be presented to small and medium businesses with an accumulated annual turnover of less than $50 million:
- Skills & Training Boost
- Technology Investment Boost
The Technology Investment Boost and the Skills and Training Boost is intended to apply to expenditure from 7.30pm ACT time on Budget night, 29 March 2022 until 30 June 2024.
The Skills and Training Boost
The Skills and Training boost is a 120% tax deduction for expenditure earned on any external training courses given to employees by the business. To be eligible for this bonus tax deduction:
- The expenditure must train employees either in-person or online only in Australia
- Expenditure must be charged either directly or indirectly by a registered training provider
- The registered trainer can’t be the small business or an associate of the small business
- The expenditure must be deductible
This training boost will not be accessible to people that are sole traders, partners in a partnership or independent workers.
The Technology Investment Boost
The Technology Investment Boost is a 120% tax deduction for expenditure incurred on business expenses and depreciating assets that support digital adoption, such as portable payment devices, cyber security systems, or subscriptions to a cloud-based service.
To be eligible for this bonus tax deduction:
- The expenditure must be eligible for deduction
- The expenditure must be incurred between 7.30pm (AEST), 29 March 2022 and 30 June 2023
- If the expenditure is on a declining asset, the asset must be first used or installed ready for use by 30 June 2023.
The boost will not be accessible to, Properties that are sold while the boost is available, Financing costs, Salary or wage costs, Training or education costs and Trading stock costs.
In conclusion the Skills and Training Boost and the Technology Investment Boost will be available to small and medium businesses with an accumulated annual turnover of less than $50 million. The tax deduction is intended to apply on the 29 March 2022 until 30 June 2024.
Feel free to contact Lana and her team at Matovic Business Accountants if you would like to discuss your business’ accounting and bookkeeping needs.
Email us at info@matovicaccounting.com.au or call (07) 3557 5721.
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