In good news for businesses, the Treasurer has announced that the Labor Government will support the 120% deduction to eligible businesses for expenditure on training and digital uptake. These measures were firstly announced in the March budget by the Liberal Government so it has previously been unclear whether this measure would become law.
The announcement has made it clear this measure will be passed and will be backdated to apply to all spending in the relevant areas from 29 March 2022. The Technology Investment Boost will apply to spending incurred up to 30 June 2024 whilst the Skills and Training Boost will apply to spending incurred up to 30 June 2023. Businesses with a turnover of less than $50 million will be eligible and will receive an additional 20% deduction for every dollar spent on eligible expenditure in those areas. Although the legislation has not been formalised the intention is to make business more competitive by encouraging spending to upskill their employees and to transform their business with digital systems which have proven to be important in the post COVID world. If you have any queries about these schemes, please do not hesitate to contact us.