Federal treasurer Josh Frydenberg believes with the new Technology and Training Investment Boosts will help reward small businesses who embrace the digital revolution by investing in new technologies and upskilling of staff.
As part of the new budget, set to cost the government $1.6bn in tax revenue, small businesses will be able to claim 120% of the costs as deductions for money spent on new technologies and training courses for staff.
In addition, small businesses can claim a bonus 20% deduction for the cost of expenses and depreciating assets with the Technology Investment Boost, including portable payment devices, subscriptions to cloud-based services and cybersecurity systems.
Eligible costs incurred from Tuesday evening for an estimated 3.6 million businesses with annual turnover of less than $50m, will be deducted from their taxable revenue with a return greater than what was spent.
Regarding the Skills and Training Boost, there is no limit on the amount of spending on training courses for small business with the bonus 120% rate. However, certain rules will apply such as courses needing to be run by external providers, be Australian registered and not be in-house or on-the-job training.
Free Beyond Blue mental health support for entrepreneurs (valued at $4.6m) as well as other several small business initiatives are included in this budget.
$5.6m will also be provided to the Fair Work Commission to develop a division dedicated to deal with unfair dismissals and industrial protection disputes in the workplace for small businesses.
The Technology Boost initiative will have an annual cap of $100,000 and is set to last until 30 June, 2023 and the Skills and Training Boost also covering spending incurred by eligible businesses is set to last until 30 June, 2024.
The Small Business Lounge is here to help small business owners thrive. If you have been thinking about a new website build or migrating to different software, with these new initiatives there is no better time to strengthen your brand and business operations.
Contact us today to see how we can help you get the most out of this incentive.