Technology & Training Breaks for Small Businesses

The Australian Government is offering temporary tax breaks for small businesses that invest in new technology or employee training and skills development.

Under the Technology Investment Boost, more than 3.6 million small businesses with an annual turnover of less than $50 million will be able to claim a bonus 20 percent deduction for the cost of expenses and depreciating assets, up to $100,000 of expenditure per year.

Eligible expenditure includes items such as portable payment devices, cyber security systems and subscriptions to cloud-based services.

The goal of the tax break is to encourage small businesses to go digital. So, if you’ve been contemplating moving your systems to the cloud, or implementing Multifactor Authentication or Enhanced Endpoint Protection, it could be the right time.

The boost will apply to expenditure incurred from budget night on 29 March 2022 until 30 June 2023.

The tax break also applies to money spent by small businesses on training or upskilling their employees, helping them become more productive and competitive. This could include Security Awareness Training for staff, or business coaching.

As part of the Skills and Training Boost unveiled in the budget, small businesses will be able to claim a bonus 20 percent deduction for the cost of external training courses delivered to employees in Australia or online, by providers registered in Australia.

In-house and on-the-job-training is not eligible, nor is money spent training people who are not members of the business.

This Skills and Training Boost will apply to eligible expenditure incurred from budget night until 30 June 2024.

For help with technology services or to find out more about the budget measures that may affect your business, please get in touch with us on 1300 764 200 or email info@hoodsweeney.com.au.