Grants Updates July 2023 – Small Business Skills & Training Boost and Small Business Technology Investment Boost

Small businesses (with an aggregated annual turnover of less than $50 million) can deduct an additional 20 per cent of the expenditure incurred for the purposes of training programs for staff or digital business expenses and depreciating assets such as portable payment devices, cyber security systems or subscriptions to cloud based services, plus others.

An annual $100,000 cap on expenditure will apply to each qualifying income year. Businesses can continue to deduct expenditure over $100,000 under existing law.

Please note that the legislation applies from 29th March 2022, therefore we will need to check the expenses incurred in the last quarter of the 2022 year & include the additional 20% claim in the 2023 year, if applicable.

Small Business Skills and Training Boost

• Small businesses with an aggregated annual turnover of less than $50 million will be able to deduct an additional 20% of expenditure that is incurred for the provision of eligible external training courses to their employees by registered providers in Australia.
• This measure will apply to expenditure incurred in the period commencing from 7:30 pm AEDT 29 March 2022 until 30 June 2024.

Small Business Technology Investment Boost

• Small businesses (with aggregated annual turnover of less than $50 million) will be able to deduct an additional 20 per cent of the expenditure incurred for the purposes of business digital operations or digitising its operations on business expenses and depreciating assets such as portable payment devices, cyber security systems or subscriptions to cloud based services.
• Capped at $100,000 per income year e.g Bonus claim is capped at $20, 000 per year. The maximum bonus deduction a business can claim is $40,000 for the entire period (2 financial years).
• This measure will apply to expenditure incurred in the period commencing from 7:30 pm AEDT 29 March 2022 until 30 June 2023.

See a summary on the ATO website here and more in depth information here.