In the March 2022 Federal Budget, the Government announced two support measures for small businesses (turnover under $50m).
The support measures include a 20 per cent uplift of the amount deductible for expenditure incurred on external training courses and digital technology as follows:
- An additional 20 per cent of the cost incurred on business expenses and depreciating assets that support digital adoption can be deducted. An annual cap of $100,000 will apply in each qualifying income year, and the boost will apply to eligible expenditure incurred from 7:30pm AEDT 29 March 2022 until 30 June 2023.
- An additional 20 per cent of expenditure incurred can be deducted on external training courses provided to employees in Australia or online delivered by entities registered in Australia. Exclusions apply, and the boost will apply to eligible expenditure incurred from 7:30pm AEDT on 29 March 2022 until 30 June 2024.
Whilst these measures were announced to commence from Budget night, the required legislation was not passed prior to the calling of the Federal Election and hence these measures are not yet law. There is also a risk that the measures may not be enacted after the Election.
Therefore, eligible businesses should approach their entitlements with respect to these measures with care, including considering whether it may be commercially appropriate to delay expenditure until such time as the relevant measures are enacted.
If you have any questions in respect of these measures, please contact your Grant Thornton representative.
Federal Budget Report 2022-23
