The Government recently passed legislation “to introduce two new tax incentives that support small and medium businesses to train and upskill employees and improve their digital and tech capacity.”
Importantly, the Technology Investment Boost and the Skills and Training Boost will be backdated to 29 March 2022, so that small and medium businesses can receive the full benefits.
Editor: This is welcome, though not that generous, considering the Bill has been sitting before Parliament since 3 August 2022, and introduced measures for the 2023 income year, which has already finished!
Small and medium businesses with an annual turnover of less than $50 million will have access to a bonus 20% deduction for eligible expenditure on external training of employees by providers registered in Australia, until 30 June 2024.
Small and medium businesses will also have access to a bonus 20% deduction that will support the uptake of digital technologies, until 30 June 2023.
The above legislation became law on 23 June 2023.