The Australian Taxation Office (ATO) has introduced a new tax deduction for small businesses looking to invest in technology or training. The Small Business Technology Investment Boost and the Small Business Skills and Training Boost allow eligible small businesses to claim a tax deduction of up to 120% on eligible investments.
The Small Business Technology Investment Boost allows small businesses with a turnover of less than $10 million to claim a tax deduction of up to 120% on eligible investments in technology, such as software, hardware, and cloud computing services. This means that if a small business invests $10,000 in eligible technology, they can claim a tax deduction of $12,000.
The Small Business Skills and Training Boost allows small businesses with a turnover of less than $10 million to claim a tax deduction of up to 120% on eligible training expenses. This includes training for employees and business owners, as well as professional development courses. This means that if a small business spends $10,000 on eligible training expenses, they can claim a tax deduction of $12,000.
Both of these tax deductions are available for the 2020 and 2021 income years, and can be claimed in addition to other tax deductions that small businesses are eligible for.
Overall, the ATO’s 120% tax deduction provides a great opportunity for small businesses to invest in technology and training that can help them grow and improve their operations. By taking advantage of this tax deduction, small businesses can offset some of the costs of these investments, making them more affordable and accessible. It is a great way for small business to upgrade their technology stack and skillset, boost their productivity and competitiveness in the market, and ultimately grow their business.