Show download pdf controls
  • Small Business Technology Investment Boost and Small Business Skills and Training Boost

    On 29 March 2022, as part of the 2022–23 Budget, the then Government announced it will support small business through the following new measures. These measures are not yet law.

    On this page

    Related page

    Small Business Technology Investment Boost

    Subject to law, 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 under the existing tax law. We will provide further details on eligible expenses once the law has passed.

    An annual $100,000 cap on expenditure will apply to each qualifying income year. Businesses can continue to deduct expenditure over $100,000 under existing law.

    When the technology investment boost applies

    This measure will apply to expenditure incurred in the period commencing from 7:30 pm AEDT 29 March 2022 until 30 June 2023.

    According to the exposure draft legislation and associated explanatory materials, 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

    Subject to law, small businesses with an aggregated annual turnover of less than $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 in accordance with the existing tax law.

    When the skills and training boost applies

    This measure will apply to expenditure incurred in the period commencing from 7:30 pm AEDT 29 March 2022 until 30 June 2024.

    Based on the exposure draft legislation and associated explanatory materials, 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.

      Last modified: 17 Oct 2022QC 68791