The Proposed skills boost will provide small businesses that have an aggregated annual turnover of less than $50 million, with a bonus 20% deduction for eligible expenditure on external training provided to their employees.
To be eligible for bonus deductions, the expenditure must be: incurred on external training delivered to employees of the business by registered providers; and fully deductible under another provision of tax law, whether in, or wholly in, the income tax year in which the expenditure incurred.
The proposed technology boost will provide small businesses that have an aggregated annual turnover of less than $50 million with a bonus 20 per cent deduction for eligible expenditure on supporting digital adoption. The budget announcement broadly described that eligible expenditure would “include portable payment devices, cyber security systems or subscriptions to cloud based services”.
The draft explanatory material explains that expenditure on expenses and depreciating assets that support digital operations or digitising operations may include, but is not limited to, business expenditure 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 boost is proposed to apply to eligible expenditure from the budge announcement on 6 November 2021 to 30 June 2024.
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