Well three quarters of the tax year has gone by and tax planning is at the front of our mind. 2023 has Two new exciting measures proposed to support small businesses are currently before the Senate.

These being:

Technology Investment Boost

  • Still subject to law, small businesses (with aggregated annual turnover of less than $50 million) will be able to deduct an additional 20 per cent of the cost incurred on business expenses and depreciating assets that support their digital adoption, such as portable payment devices, cyber security systems or subscriptions to cloud based services.
  • There is an Annual cap of $100,000.
  • This applies to expenditure commencing 7.30pm on March 29th 2022 to 30 June 2023 (1 year).
  • Claimable in the 2023 year (even if the expenditure occurred between 30 March 22 and 30 June 2022)

Skills and Training Boost

  • Still subject to law, small businesses with an aggregated annual turnover of less than $50 million will be able to deduct an additional 20% of expenditure incurred on eligible training courses provided to employees.
  • This applies to expenditure commencing 7.30pm on March 29th 2022 to 30 June 2024 (2 years)
  • Not available to sole traders
  • No annual cap
  • Claimable in the 2023 year (even if the expenditure occurred between 30 March 22 and 30 June 2022)

EXAMPLES:

Technology Investment Boost

  • Spend on laptops $100k – July 2022
  • Claim the $100k under temporary full expensing OR depreciate these over their useful lives of the laptops in the 2023 year
  • Claim the additional Boost of $20,000 in the 2023 year

Technology Boost and Skills Boost

  • Purchase a 2022 subscription to a cloud service for $2000 on 23 April 2022.
  • Spend $1000 on training an employee on 23 April 2022
  • Claim both the subs and training deductions in the 2022 tax year
  • Claim the Technology Boost of 20% on the subscription – $400 – in the 2023 tax year
  • Claim the Skills and Training Boost on the training spent – $200 – in the 2023 year
  • Purchase the 2023 subscription for $2000 on 23 April 2023 and spend another $2000 on training on the 23 April 2023
  • Claim both the subs and training deductions in the 2023 tax year
  • Claim the Technology Boost for this 2023 subscription, also in the 2023 tax year of an additional $400, as well as the Skills and Training Boost of 20% on the training incurred in the 2023 year – boost of $400 (20%).

We, at MCA, recommend companies monitor the Technology and Skills spend between March 29 2022 to 30 June 2023 (Technology and Skills Boost), and 30 June 2024 (Skills Boost), to claim the tax deduction for the spend in the year incurred, as well as claiming the additional 20% Boosts in the 2023 tax year.

If you have any questions, please contact Mark or the team at mark@mcaccg.com.au or 9923 2959.

This is general advice only and not to be interpreted as individual advice specific to your situation. Contact us to discuss the best solutions for your needs.”