Could your business do with a technology or skills boost? Have you invested in new tech this financial year? The Small business technology investment boost is a bonus 20% deduction you may be able to claim this tax time, if your eligible tech is installed by 30 June 2023.
The boost applies to eligible expenses and depreciating assets up to $100,000 per income year, which means the maximum bonus deduction is $20,000 per income year.
It’s available to businesses where the eligible expenditure is: incurred between 7:30 pm AEDT 29 March 2022 and 30 June 2023 on a depreciating asset, where it’s first used, or installed and ready for use, by 30 June 2023. The Small business skills and training boost allows eligible small business an additional 20% tax deduction to train new and existing employees. This boost helps you build a better trained and more productive workforce.
It’s available to businesses where the eligible expenditure is: incurred between 7:30 pm AEDT 29 March 2022 and 30 June 2024 related to training, where the enrolment or arrangement for the provision of the training occurs at or after 7:30 pm 29 March 2022. Both boosts are available to small businesses with an aggregated annual turnover of under $50 million.Temporary full expensing ends 30 June 2023 The temporary full expensing (TFE) depreciation incentive was not extended and will end on 30 June 2023.
Under the incentive, eligible businesses can claim an immediate deduction for eligible depreciating assets, rather than claiming the decline in value over several years.
You cannot claim deductions under TFE for assets delivered or installed ready for use after 30 June 2023. This includes if your asset was purchased before 30 June 2023, but delivery was delayed outside of your control.
If your assets are delivered or installed ready for use after 30 June 2023, you will still be able to claim deductions for the business portion of the decline in value of the depreciating asset under General depreciation rules and Simpler depreciation for small business.
If you plan on claiming deductions under TFE this tax time, review your eligibility and determine when each asset was first used or installed ready for use.
If you’re unsure about your eligibility for TFE, or the eligibility of certain assets, speak to us.
The boost applies to eligible expenses and depreciating assets up to $100,000 per income year, which means the maximum bonus deduction is $20,000 per income year.
It’s available to businesses where the eligible expenditure is: incurred between 7:30 pm AEDT 29 March 2022 and 30 June 2023 on a depreciating asset, where it’s first used, or installed and ready for use, by 30 June 2023. The Small business skills and training boost allows eligible small business an additional 20% tax deduction to train new and existing employees. This boost helps you build a better trained and more productive workforce.
It’s available to businesses where the eligible expenditure is: incurred between 7:30 pm AEDT 29 March 2022 and 30 June 2024 related to training, where the enrolment or arrangement for the provision of the training occurs at or after 7:30 pm 29 March 2022. Both boosts are available to small businesses with an aggregated annual turnover of under $50 million.Temporary full expensing ends 30 June 2023 The temporary full expensing (TFE) depreciation incentive was not extended and will end on 30 June 2023.
Under the incentive, eligible businesses can claim an immediate deduction for eligible depreciating assets, rather than claiming the decline in value over several years.
You cannot claim deductions under TFE for assets delivered or installed ready for use after 30 June 2023. This includes if your asset was purchased before 30 June 2023, but delivery was delayed outside of your control.
If your assets are delivered or installed ready for use after 30 June 2023, you will still be able to claim deductions for the business portion of the decline in value of the depreciating asset under General depreciation rules and Simpler depreciation for small business.
If you plan on claiming deductions under TFE this tax time, review your eligibility and determine when each asset was first used or installed ready for use.
If you’re unsure about your eligibility for TFE, or the eligibility of certain assets, speak to us.
Author
Alexander LauretiAlexander Laureti is the Principal and Managing Director of LMS Advisory. He holds a Bachelor’s degree in Accounting and Law, and he is a Fellow of the CPA (Certified Practising Accountants) and a Chartered Tax Advisor. Alexander has over 17 years of experience as an accountant in Public Practice.
