The Government announced two support measures for small businesses (aggregated annual turnover less than $50 million) in the form of a 20% uplift of the amount deductible for expenditure incurred on external training courses and digital technology.
What are external training courses?
An eligible business will be able to deduct an additional 20% of expenditure incurred on external training courses provided to its employees. The training course must be provided to employees in Australia or online and delivered by entities registered in Australia. Some exclusions will apply, such as for in-house or on-the-job training. The boost will apply to eligible expenditure incurred from 7:30 pm (AEDT) on 29 March 2022 until 30 June 2024. The boost for eligible expenditure incurred by 30 June 2022 will be claimed in tax returns for the following income year. The boost for eligible expenditure incurred between 1 July 2022 and 30 June 2024, will be included in the income year in which the expenditure is incurred.
Digital adoption (Small Business Technology Investment Boost)
An eligible business will be able to deduct an additional 20% of the cost incurred on business expenses and depreciating assets that support its digital adoption. Eligible expenditures include portable payment devices, cyber security systems or subscriptions to cloud based services. An annual cap will apply in each qualifying income year so that expenditure up to $100,000 will be eligible for the boost.
The following table summarises the timing of the eligible expenditure and the income the expenses can be claimed.
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Timing of the eligible expenditure was incurred |
Timing for claiming the additional 20 percent deduction |
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From 7:30 pm (AEDT) on 29 March 2022 until 30 June 2022 |
2022 – 2023 income year |
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From 1 July 2022 to 30 June 2023 |
2022 – 2023 income year |