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Small business technology investment boost and skills and training boost

The Technology Investment Boost and Skills and Training Boost for small businesses in the 2022–23 Budget.

Last updated 4 July 2023

The technology investment boost and skills and training boost for small businesses are now law.

On 29 March 2022, as part of the 2022–23 Budget, the then government announced it would support small business through these new measures. The measures became law on 23 June 2023.

Small business technology investment boost

Small businesses (with an aggregated annual turnover of less than $50 million) can deduct an additional 20% of the expenditure incurred for the purposes of business digital operations or digitising its operations on business expenses and depreciating assets such as portable payment devices, cyber security systems or subscriptions to cloud based services.

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 applies to expenditure incurred in the period commencing from 7:30 pm AEDT 29 March 2022 until 30 June 2023. An entity can claim the boost for expenditure on a depreciating asset only if the asset is first used, or installed ready for use, by 30 June 2023.

The 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

Small businesses (with an aggregated annual turnover of less than $50 million) will be able to deduct an additional 20% of expenditure that is incurred for the provision of eligible external training courses to their employees by registered providers in Australia. 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 applies to expenditure incurred in the period commencing from 7:30 pm AEDT 29 March 2022 until 30 June 2024.

The special rules will apply to when the bonus deduction can be claimed in tax returns depending on a business's balancing date.

How to claim the boosts

For more information on how and when to claim the boosts:

More information

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