Small business skills and training boost
The Treasury Laws Amendment (2022 Measures No. 4) Act 2023 provides for a temporary skills and training boost for small businesses in the form of a bonus deduction. Small businesses (with an aggregated annual turnover of less than $50 million) can claim the bonus deduction as an additional 20% deduction, on top of their ordinary deduction, for expenditure incurred for the provision of external training courses to employees by certain registered training providers in Australia.
It applies to eligible expenditure incurred from 7:30 pm (AEDT) on 29 March 2022 until 30 June 2024. Special rules provide for the income year in which the bonus deduction can be claimed.
Small business technology investment boost
The Treasury Laws Amendment (2022 Measures No. 4) Act 2023 provides for a temporary technology investment boost for small businesses in the form of a bonus deduction. Small businesses (with an aggregated annual turnover of less than $50 million) can claim the bonus deduction as an additional 20% deduction, on top of their ordinary deduction, for eligible business expenditure incurred for the purposes of their digital operations or digitising their operations. This includes expenditure on a depreciating asset provided the asset was first used or installed ready for use by 30 June 2023. The maximum additional deduction is $20,000 per income year.
It applies to eligible expenditure of up to $100,000 per income year incurred from 7:30 pm (AEDT) on 29 March 2022 until 30 June 2023. Special rules also apply if claiming the bonus deduction for eligible expenditure on a depreciating asset.
New labels in the AMIT tax return 2023
In the AMIT tax return 2023, the following labels have been added, at Small business boosts:
- Small business skills and training boost
- Small business technology investment boost
Removed labels in the AMIT tax return 2023
In the AMIT tax return 2023, the Credit on interest for early payments – amount of interest has been removed at Additional information.
Interest on early payments (IEP) has now been automated for eligible early payments made from 1 July 2021. As a result, there is no longer a requirement for clients to complete label H1 in the tax return to claim a refund of their IEP.
Key changes and new measures affecting your clients in 2023 attribution managed investment trust (AMIT) tax returns.