120% Tax Deduction...

Heard about the Small Business Technology Investment Boost and Small Business Skills and Training Boost that would allow your business a 120% deduction for amount spent on training and technology costs?

It made for a good headline and it is also true. It was announced as a small business support in March 2022 as part of the 2022-23 federal budget. It is just that till now, an announcement and not yet law and the deicision on weather it becomes law or not would be made by the government.

So dont go rushing out spending expecting massive tax benefits because even if passed you get the usual benefits in the 2022 year but you dont get any "bonus" benefits (20% extra deduction) until the business does their 2023 tax returns. Yes that is correct, not 2022 but 2023 tax returns which most businesses wont be doing till after July 2023.

In anycase always remember that your business should only be investing on things it needs to keep functioning and growing. No decisions should be based purely for taxation benefits.