Australian small and medium-sized enterprises (SMEs) with turnover below $50 million will be eligible for two new tax incentives aimed at upskilling the workforce and improving digital and tech capacity.
The Parliament yesterday passed legislation for incentives estimated to be worth $1.5 billion which are expected to benefit 3.8 million businesses nationwide.
Backdated to 29 March this year, the incentives include a bonus 20 per cent deduction for eligible expenditure on external training of employees by providers registered in Australia, and the same bonus deduction to support the uptake of digital technologies.
The training incentive will be valid until 30 June 2024, but the cut-off date for the uptake of digital technologies will only be in place until the end of this month.
The Federal Government notes that training employees requires time and money, both of which are at a premium when employers are trying to run a small or medium business.
Treasurer Jim Chalmers said this investment would support small businesses around the country to boost their productivity and scale up
"We recognise how important the small business community is to this country and to our national economy ? that’s why we want to create more opportunities for them to grow and prosper," the Treasurer said.
"When small businesses invest in digital technologies and upskilling staff, it boosts their productivity and drives economic growth.
"That’s why we are making them law and backdating deductions so businesses are rewarded for the investments they’ve been making and can take advantage of this extra support."
His comments were echoed by Minister for Small Business, Julie Collins.
"We know small businesses have had a difficult few years, so we’re working hard to deliver practical support to help them bounce back,” Minister Collins said.
“These new incentives passed today will set Australia’s small businesses up for more success.”
Assistant Treasurer and Minister for Financial Services, Stephen Jones, said the Federal Government is committed to investing in the future of Australian businesses.
"The Government is investing in small businesses, so they can the upskill employees, remain competitive in a rapidly changing technological landscape and take advantage of new opportunities for growth," Minister Jones said.
“Millions of small businesses that have already invested in new technology this financial year will now to be eligible to make deductions this tax time. It’s great news at a time where small businesses most need cash flow support."
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