Small businesses will be able to claim greater tax deductions for expenses such as external training and digital assets under new measures announced in last night’s Federal Budget.
Employment, Workforce, Skills, Small and Family Business Minister Stuart Robert says the extra claims will help businesses boost their digital capability and attract, retain and upskill staff.
The new deductions come on top of the ability to instantly write-off assets, which runs until June 20 next year.
The Technology Investment Boost aims to reduce the cost of going digital, supporting businesses to invest more in their digital capability.
More than 3.6 million small businesses with an annual turnover of less than $50 million will be able to claim an extra 20 per cent deduction for the cost of expenses and depreciating assets, up to $100,000 each year, under the $1 billion tax relief plan that’s in place until June 30, 2023.
Items eligible under the Technology Investment Boost, effective immediately, include portable payment devices, cyber security systems and subscriptions to cloud‑based services.
The new Skills and Training Boost, in place until June 30, 2024, aims to help small businesses train new and existing staff, helping them innovate and grow.
As part of the boost, small businesses can now claim a 20 percent deduction for the cost of external training courses delivered in Australia or online, by providers registered in Australia.