The Government has announced that they will introduce over $1.5 billion in new tax incentives aimed at supercharging the capacity of SMEs in the areas of digital technology and employee upskilling.
In an effort to catalyse growth and boost productivity, the Parliament recently passed legislation to implement two pivotal tax incentives. The Technology Investment Boost and the Skills and Training Boost, worth more than $1.5 billion, are designed to bolster SMEs’ tech capacity and encourage investment in employee training. These incentives are retroactively effective from 29 March 2022, ensuring SMEs receive their full benefits.
Eligible SMEs, defined as businesses with an annual turnover of less than $50 million, will have access to a bonus 20% deduction for external employee training expenses until 30 June 2024.
Training and digital technology investment can be resource-intensive. Acknowledging this, the government's measures are designed to ease this burden, aiding businesses in recouping investment costs. This comes as great news for small businesses that need financial support to enhance productivity and upscale operations.
For more information on these incentives, visit the Australian Government website.
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Ref: Treasurer's media release, 21 June 2023