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Are you aware of the two new incentives that were released in the March Budget? The Skills and Training Boost, and the Technology Investment Boost were both mentioned and released, however they aren’t legislated yet.
This means that the deductions aren’t going to be recognised in the 2022 financial year, instead small businesses will need to keep records of the relevant expenditure from 29/3/22 to 30/6/22 (as well as for the 2023 year) for the uplift to be claimed in the 2023 financial year.
The Government introduced this as a boost to support small businesses to train and upskill their employees.
The ATO explains that, “Small businesses with an aggregated annual turnover of less than $50 million will be able to deduct an additional 20% of expenditure incurred on eligible training courses provided to employees.”
The external training courses will need to be provided to employees in Australia or online, and delivered by entities registered in Australia.
To support digital adoption by small businesses the Government introduced this incentive.
The ATO explains that “Small businesses (with aggregated annual turnover of less than $50 million) will be able to deduct an additional 20 per cent of the cost incurred on business expenses and depreciating assets that support their digital adoption, such as portable payment devices, cyber security systems or subscriptions to cloud based services.
An annual $100,000 cap will apply to each qualifying income year. Businesses can continue to deduct expenditure over $100,000 under existing law.”
At present, the deductions aren’t going to be recognised in the 2022 financial year, instead small businesses will need to keep records of the relevant expenditure from 29/3/22 to 30/6/22 (as well as for the 2023 year) for the uplift to be claimed in the 2023 financial year.
As a simple breakdown refer to the tables below.
If you have any questions about the Technology Investment Boost or the Skills and Training Boost, please reach out to us using the form below:
