There was some good news for Small Businesses and technology in the budget. There will be additional tax relief for small businesses to go digital and upskill their employees. The excerpt from the press release shows a tax deduction accelerator (120%) for migration to the Cloud, Cyber Security improvement and training. We are investigating the exact rules as many of you should be able to take advantage of this. We will advise you more details once we have more information.
Technology Investment Boost
The Government’s Technology Investment Boost reduces the cost of going digital, supporting businesses to invest more in their digital capability. This measure will provide tax relief of $1 billion.
More than 3.6 million small businesses with an annual turnover of less than $50 million will be able to claim a bonus 20 per cent deduction for the cost of expenses and depreciating assets, up to $100,000 of expenditure per year.
Eligible expenditure includes items such as portable payment devices, cyber security systems and subscriptions to cloud-based services.
The boost will apply to expenditure incurred from 7:30pm (AEDT) on 29 March 2022 (Budget night) until 30 June 2023.
Skills and Training Boost
The Government’s Skills and Training Boost encourages small businesses to train new staff and upskill existing staff, helping them to be innovative and grow. This measure will provide tax relief of $550 million.
Small businesses will be able to claim a bonus 20 per cent deduction for the cost of external training courses delivered to employees in Australia or online, by providers registered in Australia.
This boost will apply to eligible expenditure incurred from Budget night until 30 June 2024.
Source: Digital and Skills Tax Boost for Small Businesses
If you have any questions, please email email@example.com or contact Chill IT on 1300 726 679.