On Tuesday 29 March 2022, the Federal Government handed down the 2022 Budget. The focus of the Budget is to provide assistance with the rising costs of living.

Federal Budget 2022-2023

From a small business point of view, two key initiatives were announced:

Technology Investment Boost – A $1 billion Technology Investment Boost to encourage small businesses to go digital. Small businesses with an annual turnover less than $50 million will be able to deduct a bonus 20% of the cost of expenses and depreciating assets that support digital uptake. This includes portable payment devices, cyber security systems or subscriptions to cloud-based services. A $1 spend will equate to a $1.20 deduction.

Small business training bonus – Small businesses with an annual turnover less than $50 million will have access to a new bonus 20% deduction for the cost of external training courses delivered to their employees by providers registered in Australia. A $1 spend will equate to a $1.20 deduction.