The Albanese government has advanced two small business tax incentives that were announced in the Morrison government’s final budget.
Draft legislation has been introduced to parliament for the Skills and Training Boost and the Technology Investment Boost.
Under the Skills and Training Boost, small businesses can deduct an additional 20% of expenditure incurred on eligible training courses for employees. Businesses can continue to deduct ineligible expenditure in accordance with the existing tax law.
This measure will apply from 29 March 2022 until 30 June 2024.
Under the Technology Investment Boost, small businesses can deduct an additional 20% of expenditure incurred on business expenses and depreciating assets that support their digital adoption, such as portable payment devices and cybersecurity systems.
Businesses can continue to deduct ineligible expenditure in accordance with the existing tax law.
An annual $100,000 cap will apply to each qualifying income year. Businesses can continue to deduct expenditure over $100,000 under existing law.
This measure will apply from 29 March 2022 until 30 June 2023.
Tax breaks welcomed by ombudsman
The small business ombudsman, Bruce Billson, said these tax breaks would make it easier for small businesses to invest in growth measures.
“This will mean small businesses will get a $120 tax deduction for $100 spent on digital uptake and upskilling staff,” he said.
“Locking in these measures will ensure small and family businesses are digitally enabled, resilient and have the support, incentives, skills and training needed to be truly competitive and to grow.
“Deeper digital engagement has been the saviour for many small and family businesses throughout the pandemic and assistance to build their digital capacity is an important investment in their future.”
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