The Small Business Technology Investment Boost and Skills and Training Boost legislation has officially passed parliament, allowing small and medium businesses (with annual turnover less than $50 million) to deduct an additional 20% bonus deduction on all eligible business expenses.
The legislation has been backdated to 29 March 2022 to ensure businesses receive the full benefits. Although the details haven’t been announced, here’s what we know so far according to the ATO.
Small Business Technology Investment Boost
- Small businesses will be able to deduct an additional 20% of the expenditure incurred for the purpose of digitising its operations on business expenses, as well as depreciating assets, cyber security and subscriptions to cloud based services.
- An annual cap of $100,000 on expenditure will apply to each income year (maximum bonus deduction of $20,000).
- This boost is available to apply to expenditure incurred in the period commencing from 29 March 2022 to 30 June 2023.
Small Business Skills and Training Boost
- Small businesses will be able to deduct an addition 20% of the expenditure incurred for the provision of eligible external training courses to their employees by registered providers in Australia.
- At this stage there is no maximum bonus deduction specified.
- This boost is available to apply to expenditure incurred in the period commencing from 29 March 2022 to 30 June 2024.
As more information becomes available, we will keep you updated.
