Small business skills and training boost
The Treasury Laws Amendment (2022 Measures No. 4) Act 2023 provides for a temporary skills and training boost for small businesses in the form of a bonus deduction. Small businesses (with an aggregated annual turnover of less than $50 million) are able to claim the bonus deduction as an additional 20% deduction, on top of their ordinary deduction, for expenditure incurred for the provision of eligible external training courses to employees by eligible registered training providers in Australia.
It applies to eligible expenditure incurred from 7:30 pm (AEDT) on 29 March 2022 until 30 June 2024. Special rules provide for the income year in which the bonus deduction can be claimed.
You complete item P8 – Business income and expenses and item P12 Small business boosts – label M Small business skills and training boost to claim the bonus deduction.
Small business technology investment boost
The Treasury Laws Amendment (2022 Measures No. 4) Act 2023 provides for a temporary technology investment boost for small businesses in the form of a bonus deduction. Small businesses (with an aggregated annual turnover of less than $50 million) are able to claim the bonus deduction as an additional 20% deduction, on top of their ordinary deduction, for eligible expenditure incurred and depreciating assets acquired, for the purposes of their digital operations or digitising their operations. The maximum additional deduction is $20,000 per income year.
It applies to eligible expenditure of up to $100,000 per income year incurred from 7:30 pm (AEDT) on 29 March 2022 until 30 June 2023. Special rules also apply if claiming the bonus deduction for eligible expenditure on a depreciating asset.
You complete item 8 – business income and expenses and item 12 Small business boosts – label N Small business technology investment boost to claim the bonus deduction.
Australian carbon credit units – primary producers
The Treasury Laws Amendment (2023 Measures No. 2) Act 2023External Link allows eligible individual primary producers to treat certain income they receive from the sale of Australian Carbon Credit Units that they start to hold on or after 1 July 2022 as primary production income for the purposes of the farm management deposit scheme and tax averaging arrangements.
In addition, eligible individual primary producers who start to hold registered Australian Carbon Credit Units on or after 1 July 2022 as a result of their carbon abatement activities may in some circumstances only be taxed on the disposal of those units, and do not have to account for their change in value at the end of each income year they are held.
Include eligible income related to eligible Australian carbon credit units as primary production income complete item PP10 on your Gross income from primary production worksheet.
Include deductions in relation to eligible Australian carbon credit units and Primary producer registered emissions units at item P8 All other expenses.
Continue to: Completing the schedule