On 29 March 2022, as part of the 2023 Federal Budget, the then government announced it would support small business through two new tax boosts. These boosts offer bonus tax deductions for eligible technology investments and training employees.
Check if you can open the hidden treasure box below.
Small business technology investment boost
What is it?
An additional 20% tax deduction to support digital operations and digitise operations.
When does it apply?
Eligible expenditure incurred between 7:30 pm AEDT on 29 March 2022 and 30 June 2023.
Who is eligible to claim?
Small businesses with an aggregated annual turnover of less than $50 million
What can you claim?
Eligible expenditure may include, but is not limited to, business expenditure on:
- digital enabling items – computer and telecommunications hardware and equipment, annual or monthly software, subscriptions to cloud-based services, internet costs, systems and services that form and facilitate the use of computer networks.
- digital media and marketing – audio and visual content that can be created, accessed, stored or viewed on digital devices, including web page design.
- e-commerce – goods or services supporting digitally ordered or platform-enabled online transactions, portable payment devices, digital inventory management, subscriptions to cloud-based services, and advice on digital operations or digitising operations, such as advice about digital tools to support business continuity and growth.
- cyber security – cyber security systems, backup management and monitoring services.
What can’t you claim
- salary and wages
- capital works costs
- financing costs
- training or education costs (these may be eligible for the Small business skills and training boost)
- expenses that form part of your trading stock costs.
Small business skills and training boost
What is it?
An additional 20% tax deduction for external training courses delivered to employees by registered training providers.
When does it apply?
Eligible expenditure incurred from 7:30 pm AEDT on 29 March 2022 until 30 June 2024.
Who is eligible to claim?
Small businesses with an aggregated annual turnover of less than $50 million
What can you claim?
- for the provision of training to employees of your business, either in-person in Australia, or online
- charged, directly or indirectly, by a registered external training provider that is not you or an associate of yours (check at training.gov.au)
- already deductible for your business under taxation law
- incurred within a specified period (between 7:30 pm AEDTor by legal time in the ACT on 29 March 2022 and 30 June 2024).
What can’t you claim?
- training of non-employee business owners such as sole traders, partners in a partnership or independent contractors
- costs added on an invoice by an intermediary on top of the cost of training, such as commissions or fees, as they are not charged directly or indirectly by the registered training provider.
As part of the annual tax compliance preparation for our business clients we are conducting a review of accounting records to identify relevant eligible expenditure and including this additional taxation benefit in business tax returns this year.
If you have any questions regarding record keeping, or eligible claims, please contact our office.
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