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  • Small Business Technology Investment Boost and Small Business Skills and Training Boost

    The Australian Government is now in caretaker. Announced measures that are not yet law will be subject to consideration by the incoming government. In these circumstances, you need to self-assess based on the current law. If you choose to anticipate new law in line with the announcement and it is not enacted, you may need to seek an amendment.

    For more information, see Administrative treatment of retrospective legislation.

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

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

    An annual $100,000 cap 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.

    How to claim the technology investment boost

    For eligible expenditure incurred between 7:30 pm AEDT 29 March 2022 until 30 June 2022:

    • claim the expenditure as usual in your 2021–22 tax return, and
    • claim the additional 20% bonus deduction for this period in your 2022–23 tax return.

    For eligible expenditure incurred from 1 July 2022 until 30 June 2023:

    • you can deduct the entire 120% in your 2022–23 tax return.

    Small Business Skills and Training Boost

    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.

    The bonus deduction (the additional 20%) for expenditure incurred from 30 March 2022 until 30 June 2022 will be included in the following income year, 2022–23.

    The bonus deduction for expenditure incurred from 1 July 2022 until 30 June 2024 will be included in the income year in which the expenditure was incurred.

    How to claim the skills and training boost

    For eligible expenditure incurred between 7:30 pm AEDT 29 March 2022 until 30 June 2022:

    • claim the expenditure as usual in your 2021–22 tax return, and
    • claim the additional 20% bonus deduction for this period in your 2022–23 tax return.

    For eligible expenditure incurred from 1 July 2022 until 30 June 2023:

    • you can deduct the entire 120% in your 2022–23 tax return.

    For eligible expenditure incurred from 1 July 2023 until 30 June 2024:

    • you can deduct the entire 120% in your 2023–24 tax return
      Last modified: 11 Apr 2022QC 68791