1) Skills and Training Boost
Type of Deduction: Bonus 20% deduction on eligible external training expenditure for employees.
Eligibility: Small and medium businesses; must be for employees’ external training by a non-associated registered provider.
Duration: From 7:30 pm (AEDT) on 29 March 2022 until 30 June 2024.
What Can Be Claimed: External training expenditure for employees.
What Can’t Be Claimed: Training of non-employee business owners (including sole traders, partners, and contractors).
2) Technology Investment Boost
Type of Deduction: Bonus 20% deduction on eligible digital adoption expenses; cap of $20,000 per year.
Eligibility: Small and medium businesses.
Duration: From 7:30 pm (AEDT) on 29 March 2022 until 30 June 2023.
What Can Be Claimed:
• Digital Enabling Items: Computer hardware, software, internet costs, network systems.
• Digital Media and Marketing: Web page design, audio/visual content.
• E-commerce: Portable payment devices, cloud services, digital inventory management.
• Cyber Security: Systems, backup management, monitoring services.
What Can’t Be Claimed:
• Salary and wages.
• Capital works.
• Financing costs.
• Training and education costs.
• Costs included in trading stock.
3) Proposed Small Business Energy Incentive
Type of Deduction: Additional 20% deduction for expenditure supporting electrification and energy efficiency; cap of $20,000.
Eligibility: Small and medium businesses; must be for eligible assets or upgrades.
Duration: From 1 July 2023 to 30 June 2024.
What Can Be Claimed: Costs of eligible depreciating assets or upgrades supporting electrification and energy efficiency.
What Can’t Be Claimed:
• Electric vehicles.
• Renewable electricity generation assets.
• Capital works.
• Assets not connected to the electricity grid using fossil fuels.
Disclaimer: The information provided in this newsletter is for general informational purposes only and should not be construed as legal, financial, or tax advice. Specific details and needs may vary according to individual circumstances. Please consult with a professional tax agent, accountant, or legal advisor for personalized guidance tailored to your situation. Any actions taken based on this information are your own responsibility.
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