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Great news for small business owners! The Small Business Technology Investment Boost and Small Business Skills and Training Boost have been officially announced. This means you have the opportunity to claim additional deductions on your 2023 business tax return. Let's dive into these boosts in a way that's easy to understand and relatable.
With the Technology Investment Boost, you can deduct an extra 20% (a total of 120%) of your expenses for digital operations and enhancing your business's tech-savviness. Imagine deducting costs for payment devices, cybersecurity systems, and cloud services – even computers and laptops! This boost is applicable to expenses incurred between 29 March 2022 and 30 June 2023.
There's a cap of $100,000 per year on these deductions, but fret not! If your expenses exceed this amount, you can still claim the excess under the existing law. It's time to supercharge your business with cutting-edge technology while enjoying tax benefits.
The Skills and Training Boost allows you to deduct an additional 20% (a total of 120%) of your expenses for eligible training courses provided by registered providers. Whether your employees attend in-person or online training, this boost covers expenses incurred between 29 March 2022 and 30 June 2024. It's an excellent opportunity to invest in your workforce's professional growth and enhance their skills.
The cherry on top? You can claim this bonus deduction on top of your existing tax deductions. So, while your employees gain valuable knowledge, your business gains tax benefits. It's a win-win situation!
To claim these boosts, make sure to keep track of receipts, invoices, and other supporting documents related to your eligible investments and training expenses. Proper documentation is crucial when preparing your 2023 tax returns. Remember, these deductions are available to businesses with an annual turnover of less than $50 million.
Don't forget that you can claim the additional 20% boost for expenses incurred between 29 March 2022 and 30 June 2023 (the 2022 financial year) on your 2023 tax return. Stay organized, consult with your tax professional, and maximize the benefits these boosts offer.
If you want to feel confident in knowing you are claiming your maximum deductions in your business tax returns, reach out to us for a confidential discussion using the form below.
Take advantage of the Small Business Technology Investment Boost and Small Business Skills and Training Boost to propel your business forward. By embracing digital innovation and investing in your workforce, you not only enhance your operations but also enjoy valuable tax deductions. Remember to maintain proper records and seek guidance from tax professionals to ensure accurate claim submissions. So, gear up, elevate your business, and make the most of these exciting boosts!
The Government has reinvigorated the 120% skills training and technology costs deduction for small and medium business.
An election ago, the 2022-23 Budget proposed a 120% tax deduction for expenditure by small and medium businesses on technology, or skills and training for their staff. This proposal has now been adopted by the current Government and details released in recent exposure draft by Treasury.
From 1 July 2022, the standard Superannuation Guarantee (SG) rate increased from 10% up to 10.5%. It’s part of the government’s commitment to increase the SG by half a percent each year until 2025, when the SG rate will reach 12%.
The Australian Federal Budget 2022 was delivered on 29 March 2022 by the Federal Treasurer Josh Frydenberg.
See our breakdown of the tax measures impacting small business in Australia.
Smith Shearer, in collaboration with Kitto and Kitto Lawyers, will be hosting the ECCI Business After Hours on 12 August 2021
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