Small businesses could get a bonus 20 per cent deduction on eligible external training costs and bonus 20 per cent deduction to support uptake of digital technology, the Federal Government has announced.
The Federal Government has put the Technology Investment Boost and the Skills and Training Boost incentives, introduced in March, back on the table as draft legislation. It is inviting public submissions on the legislation and wants to introduce it to Parliament this year.
Small businesses with an annual turnover of less than $50 million will have access to a bonus 20 per cent deduction for eligible expenditure on external training of employees by providers registered in Australia, until 30 June 2024.
Small businesses will also have access to a bonus 20 per cent deduction that will support the uptake of digital technologies, until 30 June 2023.
Technology spending up to $100,000 a year will be eligible for this “Technology Investment Boost”, and the bonus deduction will be capped at $20,000 per year.
To be eligible for the bonus “Technology Investment Boost” deduction, expenditure must have a “direct link to the entity’s digital operations for its business”.
This may include spending on:
- digital enabling items – computer and telecommunications hardware and equipment, software, systems and services that form and facilitate the use of computer networks;
- digital media and marketing – audio and visual content that can be created, accessed, stored or viewed on digital devices
- e-commerce – supporting digitally ordered or platform enabled online transactions.
The Technology Investment Boost and the Skills and Training Boost will be backdated to 29 March 2022.
The Federal Government also announced $18.6 million in funding through a new round of the Digital Solutions – Australian Small Business Advisory Services Program, which provides grants to advisory service providers.