Latest News
Hot Issues
How crypto assets can trigger CGT tripwires
ATO targets dodgy deductions for holiday homes
Tips for small business owners
About the working from home safety and wellbeing checklist
Countries with the highest GDP per capita between 1800-2040
Downsizer age reduction now in force
Raids stop $33m in tax avoidance, ATO claims
100A ruling leaves trust decisions haunted by ‘uncertainty’
A 2022 Advent Calendar for our clients
Difference Between Leasing vs Hire Purchase
How Have Australians Reacted to Interest Rate Hikes?
FBT – Christmas Parties and Taxi Fare/Rideshare
Employee Christmas Parties and Gifts – Any FBT?
Big-end-of-town tax: miners, banks pay up, but for one-third it’s zip
Cash flow forecasting template
Buyback law closes loophole ‘but franking credits here to stay’
Budget October 2022-23-Comprehensive summary
Federal budget 2022 -- Winners and Loser
Federal Budget 2022/23 - Documents and Facts Sheets
Budget: all the key points you need to know
Sole traders cut back super, work longer hours
Small business debt and tax gap at top of ATO hit list
Christmas ‘crunch time for economy, inflation outlook’
Articles archive
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Chalmers revives 120% deductions for spending on skills, digital

The government has revived two initiatives that give small businesses 120 per cent tax deductions for spending on training and digital uptake which were first announced in the March budget.


The measures, worth $1.5 billion but which failed to progress before the election was called, can be accessed by a small business with a turnover less than $50 million and will be backdated to 29 March, when they were originally intended to begin.

The move to revive the 120 per cent tax deductions for skills and digital spending comes after months of doubt about the plight of the schemes, which were warmly welcomed by small businesses and the tax profession at the time. The draft legislation is open for consultation until September 19.

“The Albanese Labor Government is making these tax incentives law because we recognise that better-trained workers and more productive small businesses are a win-win for the economy,” Mr Chalmers said.

“Small businesses with an annual turnover of less than $50 million will have access to a bonus 20 per cent deduction for eligible expenditure on external training of employees by providers registered in Australia until 30 June 2024.

“Small businesses will also have access to a bonus 20 per cent deduction that will support the uptake of digital technologies until 30 June 2023.

“The Technology Investment Boost and the Skills and Training Boost will be backdated to 29 March 2022 so small businesses can receive the full benefits."

Treasury said there were around 3.7 million small businesses in Australia employing nearly 8 million workers.

“The government recognises that training employees is expensive and takes time, both of which are at a premium when employers are trying to run a small business,” said Mr Chalmers.

“These measures will make it easier for small businesses and help them recoup some of the costs of the investments they make in their employees and digital operations.”

Business management platform MYOB said the move was "momentous" because its research showed 500,000 SMEs had little to no engagement with digital tools but helping them would return $25 for every $1 spent.

The CEO for MYOB, Greg Ellis, said businesses on board with digital systems were eight times more likely to create jobs.

“SMEs will be the ones to blaze the trail to the future recovery and growth of Australia,” he said.

“In a post-pandemic world, do or don’t with digital is no longer a choice. It’s a case of do or die for any business to succeed in our new economic terrain.

“Productivity is what Australia needs – making sure every business is a digital business needs to be one of our top priorities.”

Also yesterday, Small Business Minister Julie Collins pledged $18.6 million to help small businesses adopt digital technology from April 2023.

The program provides funding for technology advice for three years and Ms Collins said it would assist businesses as Australians increasingly shopped online.

“This program helps businesses to recognise and grasp the opportunities that going online can offer, so they can survive and grow,” Ms Collins said.

“This program puts expert digital advice within the reach of every small business in Australia. Advice that is affordable, trusted and independent to get businesses on the right track with selling online, social media and digital marketing, using online tools and software, and managing their online security risks.”

CPA Australia senior manager business and investment policy, Gavan Ord, welcomed the move but urged state governments to follow the lead of Victoria and Tasmania by subsidising businesses that access advice.

“The accounting profession plays a critical role in advising small businesses on their digital transformation,” he said. “We have asked all state and territory governments to provide small businesses with financial assistance to seek advice from accountants.”




Philip King
30 August 202

Privacy Policy | Disclaimer