The ATO has introduced two measures to support small businesses:
- the Small Business Technology Investment boost, and
- the Small Business Skills and Training Boost.
Small business technology investment boost
Small businesses with an aggregated annual turnover of less than $50 million will be allowed an additional 20% tax deduction to support their digital operations and digitise their operations.
The boost is for business expenses and depreciating assets and is capped at $100,000 of expenditure per income year. You can receive a maximum bonus deduction of $20,000 per income year.
The expenditure must:
🔹 already be deductible for your business under taxation law.
🔹 be incurred between 7:30 pm AEDT 29 March 2022 and 30 June 2023.
If the expenditure is on a depreciating asset, the asset must be first used or installed ready for use for a taxable purpose by 30 June 2023.
For further information, including eligibility and what you can and can’t claim, click here.
Small business skills and training boost
Small businesses (with an aggregated annual turnover of less than $50 million) can deduct an additional 20% of the expenditure incurred to provide eligible external training courses to their employees by registered providers in Australia.
Businesses may continue to deduct expenditure that is ineligible for the bonus deduction in accordance with the existing tax law.
The special rules will apply when the bonus deduction can be claimed in tax returns depending on a business’s balancing date.
For further information, including eligibility and what you can and can’t claim, click here.
