Expect more and more headline grabbers to be popping up over the next few days and weeks regarding the Budget 2022. One of the biggest showstoppers at this moment is the training and technology incentives, where a $120 tax deduction is available for every $100 spent.
$1.20 for every $1.00 spent
This is specifically for digital technology and training for small businesses. A small business is recognised as one with an annual turnover of less than $50 million. An extra 20% can be deducted from the overall cost of digital uptake in that business. This is up to $100,000 a year.
This ‘investment allowance’ ensures that small businesses are able to both upskill their staff effectively and confidently take on necessary expenses that will project their business into an advanced digital environment through digital uptake.
Effectively, for every dollar that you spend on such expenses, you will receive $1.20 worth of deductions.
There’s no rush though. Anything between now and 30th June 2022 will be carried forward to the next financial year. This boost will go on until June 2023, however we believe, here at Accounting Tax Solutions, that some of the programs and technological support that you can adopt in this time will have a permanent, positive impact on your business.
Cybersecurity
Other beguiling Budget segments include a $9.9 billion investment into cyber capabilities, both in the defensive and the offensive. Because your defenses are only as good as the weakest link and it is recognised that there is an increased risk of cyber attacks to Australian businesses, a significant figure has been put towards the improvement of cybersecurity.
The cost of fuel
The fuel excise, which is used to fund infrastructure to the roads, has been cut by 50% for the next six months, which is an obvious relief to businesses struggling with the huge increase in the costs of fuel.
This should temporarily reduce inflationary pressures, however we are at the mercy of a continual rise in petrol prices here.
LMITO is gone
The Budget had no mention of the low to middle income tax offset (LMITO) as it was a temporary measure and it is now in its final year. However, we are looking at a cost of living offset of $420 and a $250 cost of living payment instead.
Employee share schemes
Finally, the Budget 2022 looks at taking away a little bit of the red tape surrounding employee share schemes. This is going to help Australian businesses make their mark on the world map and be globally competitive when it comes to obtaining and retaining international talent.
Accounting Tax Solutions live and breathe tax and accounting advice. If you have any questions about what the Budget 2022 means for you and your business, get in touch with us today on 07 5559 1200 or email us at info@accountingtaxsolutions.com.au for bespoke and compassionate advice.
Alternatively you can visit our office located at Shop 31, 3 Swan Lane, Mudgeeraba Market Shopping Centre, QLD 4213.