The legislation will be backdated to 29 March 2022 so small and medium businesses can take advantage of the full benefits.
Federal government passes $1.5bn in technology and training boosts
The Albanese government has passed over $1.5 billion in tax incentives in the form of the Technology Boost and the Skills and Training Boost.
The government said the respective tax incentives would be backdated to 29 March 2022 to enable small and medium businesses to receive its full benefits.
Treasurer Jim Chalmers said the investment will provide greater support for SMEs and boost their productivity.
“We recognise how important the small business community is to this country and to our national economy – that’s why we want to create more opportunities for them to grow and prosper,” said Treasurer Chalmers.
“When small businesses invest in digital technologies and upskilling staff, it boosts their productivity and drives economic growth.”
“That’s why we are making them law and backdating deductions so businesses are rewarded for the investments they’ve been making and can take advantage of this extra support.”
Small and medium businesses with an annual turnover of less than $50 million can also receive a bonus 20 per cent deduction for eligible expenditure on external training of employees by providers registered in Australia until 30 June 2024.
The organisations will also have access to an additional 20 per cent deduction that will support the use of digital technologies until 30 June 2023.
The government said passing the legislation is a win-win for the economy as better-trained workers would help firms be more productive.
Minister for Financial Services Stephen Jones said the tax incentives display the commitment the government has for small businesses, with up to 3.8 million organisations in Australia to benefit from them.
“The government is investing in small businesses, so they can upskill employees, remain competitive in a rapidly changing technological landscape and take advantage of new opportunities for growth,” said Mr Jones.
“Millions of small businesses that have already invested in new technology this financial year will now be eligible to make deductions this tax time.”
“It’s great news at a time where small businesses most need cash flow support.”
Minister for Small Business Julie Collins agreed and said passing the legislation shows the government is delivering for small businesses.
“We know small businesses have had a difficult few years, so we’re working hard to deliver practical support to help them bounce back,” said Ms Collins.
“These new incentives passed today will set Australia’s small businesses up for more success.”