As part of the 2022-2023 Budget, it was announced on 29 March 2022 by the Government then that they will support small businesses through the following new measures. It is important to note that these measures drafted are subject to final decisions by the Government and has not been enacted as law.
Small businesses that have an aggregated annual turnover of less than 50 million will hopefully soon be able get a 20 per cent additional deduction for costs they have incurred for business expenses and depreciating assets that support their digital adoption. Including but not limited to portable payment devices, cyber security systems, subscriptions to cloud based services etc.
Businesses can continue to deduct expenditure that is ineligible for the bonus deduction under the existing tax law. More information on this will be given once this law has passed.
An annual cap of $100,000 will apply to each qualifying income year. Businesses can continue to deduct their expenditure over $100,000 under existing law.
This measure will apply to expenditure incurred during the period commencing from 7:30 pm AEDT 29 March 2022 until 30 June 2023.
For eligible expenditure incurred from 7:30 pm AEDT 29 March 2022 until 30 June 2022:
For eligible expenditure incurred from 1 July 2022 until 30 June 2023:
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.
Businesses may continue to deduct expenditure that is ineligible for the bonus deduction in accordance with the existing tax law.
This measure will apply to expenditure incurred during the period commencing from 7:30 pm AEDT 29 March 2022 until 30 June 2024.
The bonus deduction (the additional 20%) for expenditure incurred from 30 March 2022 until 30 June 2022 will be included in the following income year, 2022–23.
The bonus deduction for expenditure incurred from 1 July 2022 until 30 June 2024 will be included in the income year in which the expenditure was incurred.
For eligible expenditure incurred between 7:30 pm AEDT 29 March 2022 until 30 June 2022:
For eligible expenditure incurred from 1 July 2022 until 30 June 2023:
For eligible expenditure incurred from 1 July 2023 until 30 June 2024:
Sourced from Australia Taxation Office’s website
