HUGE 120% Tax Deductions on Tech Upgrades and Digital Skills Training

Budget Tax Deductions

The federal government’s 2022-23 budget has penned a $9.9 billion investment in the next decade for new national cyber and intelligence capabilities. The budget also sees a $1.6 billion tax relief for small businesses to go digital and upskill staff as part of the government’s ‘Technology Investment Boost’.

With every hundred dollars SMEs spend on digital technologies like cloud computing, cyber security and web design they will see a $120 tax deduction. Investments up to $100,000 per year will be supported under the new measure.

  1. Applies to all expenditure on Tech Upgrades from now till June 2023.
  2. Applies to all expenditure on Digital Skills Training now till June 2024.
  3. The company must have an annual turnover of less than $50 million.

The eligible expenditure above will receive a 20% bonus deduction. Eg. if a company spends $5,000 on the above they claim $6,000 deduction on their tax return. Huge tax benefit.

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