The Albanese Government announced it will support these previously announced small business measures.
These measures are not yet law.
Small Business Technology Investment Boost
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.
Businesses may continue to deduct expenditure that is ineligible for the bonus deduction.
An annual $100,000 cap on expenditure will apply to each qualifying income year. Businesses can continue to deduct expenditure over $100,000.
When the technology investment boost applies
This measure will apply to expenditure incurred from 7:30 pm AEDT 29 March 2022 until 30 June 2023.
It is anticipated special rules will apply to when the bonus deduction can be claimed in tax returns depending on a business’s balancing date.
Small Business Skills and Training Boost
Small businesses with annual turnover under $50 million will be able to deduct an additional 20% of expenditure incurred on eligible training courses provided to employees.
Businesses may continue to deduct expenditure that is ineligible for the bonus deduction.
When the skills and training boost applies
Applies to expenditure incurred commencing from 7:30 pm AEDT 29 March 2022 until 30 June 2024. It is anticipated special rules will apply to when the bonus deduction can be claimed in tax returns depending on a business’s balancing date.