In the current 30 June 2023 financial year, pending the legislation being passed into law, businesses may wish to consider the Small Business Technology Investment Boost and Small Business Skills & Training Boost.  The initiatives were included by the previous government in the 2022 budget and its purpose is to both incentivise and support business to develop their employees and support business digital adoption.

Paul Turnbull and Pino Stravalli, Managers at DFK Benjamin King Money, provide the following guide on eligibility for these boosts.

Small Business Skills and Training Boost

This initiative covers business expenses that are incurred to train and develop employees.

The key criteria include:

  • Bonus 20% deduction for eligible expenditure incurred on training employees.   Therefore if you spend $1,000 you would receive a deduction of $1,200.
  • Training must be completed by registered training organisations (RTO).  A RTO includes TAFE Colleges and institutions and higher education institution and would normally result in achieving a qualification upon completion.
  • Eligible for expenses incurred from 7:30 pm 29 March 2022 (budget night) to 30 June 2024.
  • As this is not law we anticipate that any additional deduction from eligible expenditure incurred from budget night to 30 June 2022 will be claimable in the 2023 income tax return.
  • An annual cap of $100,000 on expenditure will apply to each qualifying financial year.

Small Business Technology Investment Boost

This initiative covers business expenses and assets that are incurred to support digital adoption, such as portable payment devices, cyber security systems or subscription to cloud based services.

The key criteria include:

  • As with the above Bonus 20% deduction for eligible expenditure incurred on training employees. Therefore if you spend $1,000 you would receive a deduction of $1,200.
  • The expense must be incurred wholly or substantially for purposes of entity’s digital operations or digitising entity’s operations.
  • The expenses include: Digitial enabling items including Computer and Telecommunications hardware and equipment.
  • Digitial media and marketing items including Audio and Visual content that can be created, accessed, stored or viewed on digital devices
  • E-Commerce items including expenses supporting digitally ordering and/or platforms for online transactions
  • There are specific items excluded from receiving the incentive such as Salaries and wages, Financing costs, Training and Education costs and Trading Stock
  • Eligible for expenses incurred from 7:30 pm 29 March 2022 (budget night) to 30 June 2024.
  • As this is not law we anticipate that any additional deduction from eligible expenditure incurred from budget night to 30 June 2022 will be claimable in the 2023 income tax return.
  • An annual cap of $100,000 on expenditure will apply to each qualifying financial year.

If you have any questions on the above government incentives please contact your representative at DFK Benjamin King Money.