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The clock is ticking as Australian lawmakers rush to enact the Technology Boost and the Skills and Training Boost - two ground-breaking policies that offer significant tax deductions to small businesses investing in digital upgrades and staff upskilling. If you are a small business operating in Australia, especially in the cyber security sector, this is a golden opportunity you don’t want to miss.

Announced in March 2022, the Technology Boost and Skills and Training Boost policies present small businesses with the chance to claim an additional 20% tax deduction on eligible digital upgrades and staff training courses. This bonus deduction applies to up to $100,000 in spending, meaning that small to medium-sized enterprises (SMEs) could potentially shave off up to $20,000 from their tax bill.

This is particularly exciting news for the cyber security landscape. As cyber threats continue to evolve, businesses must stay ahead of the curve. Investing in technology and training is paramount. The Technology Boost allows you to bolster your cyber security measures, while the Skills and Training Boost can be an essential tool in arming your team with the knowledge and skills to protect and defend against cyber threats.

The eligible spending period for the Technology Boost is from 7.30pm on March 29, 2022, to June 30, 2023. As for the Skills and Training Boost, spending is covered up to June 30, 2024.

But there's a catch! The boosts are not law just yet. The legislation necessary to enact both boosts is presently awaiting approval in the Senate. Both the Coalition, which proposed the measures in the 2022-2023 budget, and the Labor government have shown support. However, time is running short for the boosts to be legislated before the end of the financial year.

What should you do to ensure you don't miss out on these deductions?

The Australian Tax Office (ATO) has made it clear that small businesses cannot claim these bonus deductions until they become law. However, they have provided some guidance for eager businesses. If you’re planning to claim the technology investment or skills and training boost, you can opt to delay submitting your 2023 tax return until the law is enacted. Alternatively, you could submit your tax return and claim the ordinary deduction for the technology investment or skills and training expenses.

In summary, the Technology Boost and Skills and Training Boost represent a substantial incentive for small businesses, especially in the cyber security field, to invest in digital upgrades and employee training. With the legislation still pending, it is imperative to keep a close eye on developments and be prepared to act accordingly.

This is an invitation to forge ahead, and to not only protect your business but also contribute to fortifying Australia's cyber landscape. Grab this opportunity and pave the way to a safer and more resilient digital future.

This advise shared in this blog is general in nature, please consult the ATO web site for up to date information.