As a small business owner, staying competitive and keeping up with the latest technological advancements is crucial for success. That’s why we are excited to share two new initiatives that can help boost your small business’s growth and efficiency. The Small Business Technology Investment Boost and the Small Business Skills and Training Boost offer bonus deductions for eligible businesses to invest in their digital operations and employee development.
Small Business Technology Investment Boost
The technology investment boost allows eligible businesses to access a bonus deduction equal to 20% of their eligible expenditure incurred on expenses and depreciating assets for the purposes of their digital operations. This opportunity is available between 7.30 pm (AEDT) on March 29, 2022, and June 30, 2023. To be eligible, the expenditure must be eligible for a deduction under another provision of the taxation law. If the expenditure is on a depreciating asset, the asset must be first used or installed ready for use by June 30, 2023. For each of the 2021–22 and 2022–23 income years, eligible businesses can claim a bonus deduction equal to the lower of 20% of eligible expenditure incurred in that income year or $20,000.
Small Business Skills and Training Boost
Investing in the skills and training of your employees is vital for their professional growth and your business’s success. The skills and training boost provides a bonus deduction for small businesses that incur eligible expenditure on external training for their employees. The bonus deduction is calculated as 20% of the amount of expenditure that is both eligible for the bonus deduction and deductible under another taxation law provision. You can take advantage of this opportunity between 7.30 pm (AEDT) on March 29, 2022, and June 30, 2024.
To be eligible for these boost programs, your entity must meet certain criteria. For the Small Business Technology Investment Boost, the expenditure must be eligible for a deduction under another provision of the taxation law and incurred between the specified dates. If the expenditure is on a depreciating asset, it must be first used or installed ready for use by June 30, 2023. For the Small Business Skills and Training Boost, your entity must either be a ‘small business entity’ under s. 328-110 of the ITAA 1997, meaning it carries on business with an aggregated annual turnover of less than $10 million. Alternatively, if the reference to $10 million is replaced by a reference to $50 million, your entity would still be eligible.
By taking advantage of the Small Business Technology Investment Boost and the Small Business Skills and Training Boost, you can elevate your business’s digital operations and enhance the skills of your employees. These initiatives provide bonus deductions that can significantly reduce the financial burden of technology investments and training expenses. We encourage you to explore these opportunities and leverage them to propel your small business forward.
If you have any questions or need further information, please do not hesitate to reach out to us. Stay ahead of the competition and invest in your business’s future today!
