The 2022-23 budget saw the government declare support for small businesses to digitalise their operations.
REB has been unpacking the government’s budget for the coming year, as Australia moves ever closer towards a federal election.
Small businesses with an aggregated annual turnover of less than $50 million will be able to deduct a bonus 20 per cent of the cost of business expenses and depreciating assets that support digital update, up to $100,00 of expenditure per year.
Known as the “Technology Investment Boost”, this will apply to eligible expenditure incurred from the time the budget was announced (7:30pm, 29 March 2022) and June 2023 and is set to support investment in digital items such as cloud computing, cyber security, accounting and e-invoicing software and web page design.
According to the budget documents, this scheme is already estimated to provide $1 billion in tax relief and is set to encourage small businesses to invest in digital products, thereby strengthening business confidence, accelerating digital transformation, and creating jobs.
The technology investment boost coincides with the introduction of another “Skills and Training Boost”, which will also be applicable to small businesses.
These businesses will have access to a bonus 20 per cent deduction for the cost of external training courses delivered to their employees by registered Australian providers and will reportedly provide a further $550 million in small-business tax relief.
ABOUT THE AUTHOR
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.