This budget makes it clear; the Government wants small businesses to continue to adopt digital technology, train and upskill employees and they’re going to incentivise this with tax deductions.
The Treasurer announced that starting at the close of the budget, for every $100 a small business spends on training their employees, there will be a $120 tax deduction. Following that up with announcing that for every $100 a small business spends on digital technologies they will also get a $120 tax deduction. This will apply for investments of up to $100,000 per year.
Unlike cash-handouts, these measures have the potential to have a lasting impact on the Australian economy with the Government hoping that investing in technology will engage productivity gains over the long term and that upskilling workers will lift wages, providing Australians with more purchasing power and the Government with more tax revenue over the long term.
Abigail Barnard is Chief Financial Officer at Viridian Advisory.
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