Great Budget tax breaks for SME businesses investing in technology and skills.

The government has?increased tax breaks for small and medium businesses investing in new technology and skills, but will not extend the temporary full expensing of equipment investments.

Key points:

• The government will give temporary 120% tax deductions for small and medium businesses spending on new technology for about 15 months.
• The government is not further extending the temporary full expensing of equipment investments.
• The budget also commits $1.3 billion to businesses to help fund apprenticeships and staff training.

So, what are the Australian definitions of business sizes?

• a small business, between 1-19 persons with an annual turnover of $10m or less.
• a medium business,?between 20 and 199 persons with an annual turnover of between $10m and $250m.
• and a large business employs 200 or more persons.

What type of investments will be supported?

From Budget night every hundred dollars these small and medium businesses spend on digital technologies — like cloud computing, e-invoicing, cyber security, and web design — will see them get a 120% tax deduction.

Investments of up to $100,000 per year will be supported by this new measure. So you could look at possibly 2 lots. Check with your accountant.

Timeframe:

The additional tax deduction will be available for eligible spending incurred between the start of the Treasurer’s budget speech:

• @ 7:30 pm AEDT on March 29th through to June 30th, 2023, for technology investments and June 30th, 2024, for staff training.

With the additional staff training deductions, these only apply to courses delivered by external providers registered in Australia.

Summary:

It is a good time to talk to us about your:

• Business transformation to the cloud.
• Toughening your cybersecurity stance.
• Getting a more advanced Microsoft 365 subscription level.
• Review any projects that you are considering regarding your technology.

Cybertechpro Pty Ltd T/A Go Systems – supporting SMEs and in business in Sydney for nearly 20 years.

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