Federal Budget 2022: Tax boost for small businesses

Published 9:08am 30 March 2022

Small businesses will be able to claim greater tax deductions for expenses such as external training and digital assets under new measures announced in last night’s Federal Budget.

Employment, Workforce, Skills, Small and Family Business Minister Stuart Robert says the extra claims will help businesses boost their digital capability and attract, retain and upskill staff.

The new deductions come on top of the ability to instantly write-off assets, which runs until June 20 next year.

The Technology Investment Boost aims to reduce the cost of going digital, supporting businesses to invest more in their digital capability.

More than 3.6 million small businesses with an annual turnover of less than $50 million will be able to claim an extra 20 per cent deduction for the cost of expenses and depreciating assets, up to $100,000 each year, under the $1 billion tax relief plan that’s in place until June 30, 2023.

Items eligible under the Technology Investment Boost, effective immediately, include portable payment devices, cyber security systems and subscriptions to cloud‑based services.

The new Skills and Training Boost, in place until June 30, 2024, aims to help small businesses train new and existing staff, helping them innovate and grow.

As part of the boost, small businesses can now claim a 20 percent deduction for the cost of external training courses delivered in Australia or online, by providers registered in Australia.

Other measures to help businesses

$5.6 million for a dedicated small business unit in the Fair Work Commission, making it easier to meet workplace obligations.
$8 million for the Australian Small Business and Family Enterprise Ombudsman, giving easier access to expert advice.
$4.6 million to extend Beyond Blue's NewAccess for Small Business Owners program, for better access to mental health support.
$2.1 million for Financial Counselling Australia's Small Business Debt Helpline, which provides access to financial advice.
Reducing the GDP uplift rate for PAYG income tax and GST instalments to two percent for 2022-23 for 2.3 million small to medium businesses, sole traders and others who use the instalment amount method.