The Government has recently passed Treasury Laws Amendment (2022 Measures No 4) Act 2023, which has enacted the 20% Small Business Technology Boost and the 20% Small Business Training Boost, both of which were announced at the 2022 Federal Budget.
20% Training Boost
Eligibility
To be eligible for both the training boost, you must be a small business with an aggregated turnover of less than $50 million. The training boost allows an additional 20% tax deduction for qualifying expenditure and there is no limit on the amount that can be claimed. Expenditure incurred between 29 March 2022 and 30 June 2023 can be claimed in the 2023 tax return. Expenditure incurred from 1 July 2023 and 30 June 2024 can be claimed in the 2024 tax return.
Qualifying Expenditure
Expenditure that can be claimed under the training boost must meet the following criteria:
The expenditure must be for training employees in Australia either in person or online.
The expenditure must be charged by a registered training provider and cannot be a related party.
The expenditure must already be deductible under tax law.
It is important to note that sole traders and partners in partnerships are not able to claim the training boost as they are not employees.
20% Technology Boost
Eligibility
To be eligible for the technology boost, you must be a small business with an aggregated turnover of less than $50 million. This boost allows an additional 20% tax deduction for qualifying expenditure up to $100,000 resulting in a maximum additional tax deduction of $20,000. Expenditure incurred between 29 March 2022 and 30 June 2023 can be claimed in the 2023 tax return. Expenditure incurred from 1 July 2023 and 30 June 2024 can be claimed in the 2024 tax return.
Qualifying Expenditure
Expenditure that can be claimed under the training boost includes:
Computer equipment
Telecommunications equipment
Software
Internet costs
Network costs
Digital marketing content
Website costs
E-commerce platforms
Payment devices
Subscriptions to cloud-based services
Advice regarding digital tools
Cyber security systems
Antivirus protection
It is important to note that expenditure that forms part of trading stock cannot be included. Salary and wage costs can also not be claimed.
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