Author Topic: AUSTRALIA: New Budget Business Tax Incentives  (Read 634 times)

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Offline EEVblogTopic starter

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AUSTRALIA: New Budget Business Tax Incentives
« on: March 30, 2022, 02:12:08 am »
The Australian budget just dropped:
Quote
One of the Budget’s major highlights for SMEs was the announcement of a new $1.55BN tax deduction scheme, designed to reward businesses investing in skills and technology.

I heard about it here but need to check full detail
https://www.myob.com/au/blog/federal-budget-2022-taxes-cashflow-and-write-offs/

Wondering if there is anything I've been holding off doing that could make this a bit more worthwhile, like maybe upgrading my website, or moving this server to the cloud  ;D

There used to be (still is?) a 150% R&D tax concession, but the amount of paperwork made it an unpleasant experience. Not sure if this one will be the same.
 

Offline AntiProtonBoy

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Re: AUSTRALIA: New Budget Business Tax Incentives
« Reply #1 on: March 30, 2022, 02:26:36 am »
Say you invested in web development. How does the above scheme work in terms of accounting for the actual deductions?
 

Offline EEVblogTopic starter

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Re: AUSTRALIA: New Budget Business Tax Incentives
« Reply #2 on: March 30, 2022, 03:31:01 am »
Say you invested in web development. How does the above scheme work in terms of accounting for the actual deductions?

Web development (and anything else business related) would already be 100% tax deductible. Now it would be 120%.
So if I spent $1000 then I can claim $1200 as the expense. So $200 extra comes off my taxable income. Which of course is not the same as getting $200 back, it's way less than that.
Presumably there will be some form you have to fill in (or some accouting category) to state that this expense meets the new rule category.
 
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