The Australian Government has approved a boost for small businesses to help improve both their cybersecurity and digital adoption.
The Australian Government has now formally approved the Small Business Technology Investment Boost and Small Business Skills and Training Boost. These schemes are targeted at small businesses with aggregated annual turnover of less than $50 million. As a valued client, you are likely eligible for one or both of these schemes.
Small Business Technology Investment Boost
This scheme allows businesses to deduct an additional 20% 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. An annual $100,000 cap will apply to each qualifying income year.
Businesses may continue to deduct expenditure that is ineligible for the bonus deduction or is over $100,000 under the existing laws.
Small Business Skills and Training Boost
This scheme allows businesses to deduct an additional 20% of the cost incurred on eligible training courses provided to employees.
How to claim
For eligible expenditure incurred under both schemes 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 under both schemes from 1 July 2022 until 30 June 2023:
- you can deduct the entire 120% in your 2022–23 tax return.
For eligible expenditure incurred (Skills and Training Boost only) from 1 July 2023 until 30 June 2024:
- you can deduct the entire 120% in your 2023–24 tax return.
If you would like to talk more about what kinds of expenditure might be eligible and how you can take advantage of these schemes, please contact us today.
Please note this advice is of a general nature and we recommend you speak to your accountant before claiming these schemes.