SME Tax Incentives 2022

Posted 29 Sep '22

Small business tax incentives back on the table.

The Government has released draft legislation to introduce two eagerly awaited tax incentives aimed at supporting small businesses to:

  • train and upskill employees; and
  • improve their digital and ‘tech’ capacity

These incentives were initially announced by the former Government in the 29 March 2022 Federal Budget but remain unlegislated.

The new Technology Investment Boost and the Skills and Training Boost (estimated to be worth a combined $1.5 billion) are proposed to be backdated to 29 March 2022.

These incentives will provide small businesses that have an annual turnover of less than $50 million with access to a ‘bonus’ 20% deduction for eligible expenditure they incur on:

  • external training of employees until 30 June 2024; and for
  • the uptake of digital technologies until 30 June 2023.

Skills and Training Boost
Amongst other eligibility criteria, expenditure must be incurred on eligible external training for employees of the business, which would already be deductible under the tax law.

The ‘bonus’ 20% deduction will only apply to expenditure incurred between 7:30 pm (AEDT) on 29 March 2022 and 30 June 2024. Furthermore, the expenditure must be for the provision of training where the enrolment or arrangement occurs on or after 7:30 pm (AEDT) on 29 March 2022.

Importantly, the ‘bonus’ 20% deduction will not apply to the training of non-employee business owners, including sole traders, partners in a partnership and independent contractors.

Technology Investment Boost
Amongst other eligibility criteria, expenditure must have a direct link to an entity’s digital operations for its business (e.g., hardware, software, systems and services that form and facilitate the use of computer networks, digital media and marketing and e-commerce).

The ‘bonus’ 20% deduction will only apply to expenditure incurred from 7:30 pm (AEDT) on 29 March 2022 until 30 June 2023 and will be capped at $20,000 per year.

For more information visit Australian Government Treasury website.

Should you have any questions or require further information, please contact our office on 07 4041 6188 (Cairns) or 07 5391 4747 (Sunshine Coast).


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