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Small Business 20% Technology & Training Boosts

The Government has recently passed Treasury Laws Amendment (2022 Measures No 4) Act 2023, which has enacted the 20% Small Business Technology Boost and the 20% Small Business Training Boost, both of which were announced at the 2022 Federal Budget.


 

20% Training Boost


Eligibility

To be eligible for both the training boost, you must be a small business with an aggregated turnover of less than $50 million. The training boost allows an additional 20% tax deduction for qualifying expenditure and there is no limit on the amount that can be claimed. Expenditure incurred between 29 March 2022 and 30 June 2023 can be claimed in the 2023 tax return. Expenditure incurred from 1 July 2023 and 30 June 2024 can be claimed in the 2024 tax return.



Qualifying Expenditure

Expenditure that can be claimed under the training boost must meet the following criteria:

  1. The expenditure must be for training employees in Australia either in person or online.

  2. The expenditure must be charged by a registered training provider and cannot be a related party.

  3. The expenditure must already be deductible under tax law.

It is important to note that sole traders and partners in partnerships are not able to claim the training boost as they are not employees.

 

20% Technology Boost


Eligibility

To be eligible for the technology boost, you must be a small business with an aggregated turnover of less than $50 million. This boost allows an additional 20% tax deduction for qualifying expenditure up to $100,000 resulting in a maximum additional tax deduction of $20,000. Expenditure incurred between 29 March 2022 and 30 June 2023 can be claimed in the 2023 tax return. Expenditure incurred from 1 July 2023 and 30 June 2024 can be claimed in the 2024 tax return.



Qualifying Expenditure

Expenditure that can be claimed under the training boost includes:

  1. Computer equipment

  2. Telecommunications equipment

  3. Software

  4. Internet costs

  5. Network costs

  6. Digital marketing content

  7. Website costs

  8. E-commerce platforms

  9. Payment devices

  10. Subscriptions to cloud-based services

  11. Advice regarding digital tools

  12. Cyber security systems

  13. Antivirus protection

It is important to note that expenditure that forms part of trading stock cannot be included. Salary and wage costs can also not be claimed.

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