The 2022 pre-election budget was filled with plenty of promises of fast cash for voters ahead of the May election.
Small businesses that spend on new technologies and training courses to upskill staff will be able to claim 120% of the costs as deductions, as part of budget measures that will cost the government $1.6bn in tax revenue.
For the estimated 3.6m businesses with an annual turnover of less than $50m, eligible costs incurred from Tuesday evening can be deducted from their taxable revenue at an amount greater than what was actually spent.
The budget also includes several other initiatives for small businesses, including $4.6m over two years for free Beyond Blue mental health support for entrepreneurs.
In his budget speech, the treasurer, Josh Frydenberg, said he hoped the technology scheme would encourage small businesses “that are embracing the digital revolution” by rewarding those that invest in new technologies.
“From tonight, every hundred dollars these small businesses spend on digital technologies like cloud computing, eInvoicing, cybersecurity and web design will see them get a $120 tax deduction,” the Treasurer said in his budget speech on Tuesday evening.
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