Tax incentives: small business training and technology 

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The federal government released its budget on Tuesday 29 March 2022. In this article we’ll focus on two key areas that have a significant impact on small enterprise; skills and training as well as a technology investment.  

According to Treasurer Josh Frydenberg, the Technology Investment Boost will help companies embrace the digital revolution. Starting 29 March 2022, for every hundred dollars a small business spends on training their employees, they will receive a $120 tax break, helping them become more productive and competitive. A comparable 120 per cent discount was offered for digital technology purchases. Only firms with a turnover of less than $50 million are eligible for these incentives. 

Small Business Skills and Training Boost 

Businesses are struggling to keep up with demand due to low retention rates and the expenses incurred for training and onboarding new personnel. Almost every industry has seen major skill shortages as a result of this. The Skills and Training Boost has been introduced to help employee retention and the development of the necessary competencies to sustain and grow our economy.  

For small enterprises, an additional 20% bonus tax deduction (currently 120%) is offered on money spent on training. So far, we’re aware of two conditions: 

  • Training must be provided by an external organisation (it doesn’t apply internally) 
  • External organisations must be a registered company within Australia 

Small Business Technology Investment Boost 

The increase in technology expenditure is intended to assist firms in improving their digital capabilities. Eligible businesses will get an additional 20% deduction on qualified assets for depreciating assets and costs up to $100,000 a year. ‍According to the Prime Minister’s press release, eligible products include:  

  • Online sales platforms 
  • Cyber security 
  • Cloud-based service subscriptions 
  • Portable payment devices 
  • Website design 

Now is the time to go digital 

If you’d like a bit of guidance on how to tackle your digital transformation especially if your business operates in the disability or aged care sectors, our team at Centro QMS would love to help. We’ve helped multiple businesses across Australia to take the digital leap, and we can help you to do the same. Simply, get in touch. 

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