Small Business Incentives

 

The Technology Investment Boost encouraged businesses to adopt digital technologies by providing a 20% bonus deduction for eligible expenditure incurred for the purposes of an entity's digital operations. However, this 'boost' applied to eligible expenditure incurred until 30 June 2023.

 

However, there are currently two further 'boosts' outlined below, which apply to eligible expenditure incurred up until 30 June 2024:

 

• The Skills and Training Boost to support small businesses to train and upskill their employees, which applies to eligible expenditure incurred from 29 March 2022 until 30 June 2024; and

 

• The Small Business Energy Incentive (Boost) to support small business electrification and more efficient energy use, which applies to eligible expenditure incurred between 1 July 2023 and 30 June 2024.

 

The Skills and Training Boost provides 'small or medium businesses' with a bonus 20% deduction for eligible expenditure incurred on external training for employees.

 

The Small Business Energy Incentive (Boost) provides 'small or medium businesses' with a bonus 20% deduction for the cost of eligible depreciating assets and/or eligible improvements incurred in relation to existing depreciating assets that support electrification or energy efficiency.

 

To be eligible for either of the above 'boosts', a business taxpayer must satisfy a number of conditions. Also, the Small Business Energy Incentive (Boost) is subject to the passage of the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 (which is currently before Parliament).