The federal government has introduced draft legislation for two tax incentives for small businesses designed to help train employees and improve their digital capacity.
The Technology Investment Boost will let small businesses deduct an additional 20% 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.
- The measure will apply from 29 March 2022 to 30 June 2023
- An annual $100,000 cap will apply to each qualifying income year
- Businesses can continue to deduct expenditures over $100,000 under existing tax law
- Businesses can continue to deduct expenditure that is ineligible for the bonus deduction in accordance with the existing tax law
The Skills and Training Boost will let small businesses deduct an additional 20% of expenditure incurred on eligible training courses provided to employees.
- The measure will apply from 29 March 2022 to 30 June 2024
- Businesses can continue to deduct expenditure that is ineligible for the bonus deduction in accordance with the existing tax law
Both tax incentives for small businesses were announced in the March federal Budget by the previous government.