You’d be forgiven for missing the good news in this year’s Federal budget. Amidst a whirlwind election cycle, the ongoing pandemic and troubling headlines about ‘The Great Resignation’, talking taxes probably wasn’t the sexiest of dinner table topics.
But what if we told you that your business could be eligible for a tax deduction and that you could retain talented employees by giving them the chance to upskill and improve their digital literacy at the same time?
The 411 on boosting skills for future business growth
In its latest budget announcement earlier this year, the Government announced that it will be offering a tax incentive for small to medium-sized businesses (companies with an annual turnover of less than $50 million) who are willing to invest in upgrading systems and upskilling staff. Excellent! Tell me more…
From now until 30 June, 2024, eligible businesses can now access a 20 percent tax deduction for the cost of external training for employees with a provider registered in Australia, as well as for digital technologies and/or expenses and assets that support digital uptake (up to $100,000 in a year).
How do you like them apples?
That means, for every crisp ‘Granny Smith’ $100 note (or ‘Boonie’ if this change.org petitioner has their way) an eligible small business spends on digital technologies like, ahem, Beamible’s cloud-based workforce development tools, they will see a $120 tax deduction.
Yes, as you can tell, we are really liking them apples.
Keeping up with the pace of change
These so-called ‘Technology Investment Boost’ and ‘Skills and Training Boost’ programs are designed to encourage small businesses to invest in the skills of their existing employees, or train new recruits.
With an estimated $550 million - $1.6 billion in tax relief for small businesses across the two schemes, it’s never been easier for companies to access productivity gains and enhance business growth in what can feel like an ever-changing (mine) field.
Why now? Well, according to Australian Human Resources Institute’s (AHRI) CEO Sarah McCann Bartlett, strong productivity initiatives that drive workforce participation and uplift skills – especially for under-represented groups – are going to be vital as we hit this period of wage growth.
Get with the program
It’s news to no one that the world of work is shifting rapidly, and with it the need to keep step with the latest technology, systems and workforce development tools. Yet recent data from the Australian Digital Inclusion Index shows that many employees are struggling to keep up.
Less than 40 percent of Aussies feel like they can keep up with the technological pace of change, and one in four feel digitally excluded. (2021 Australian Digital Inclusion Index)
But it doesn’t have to be that way, now as much as ever with these new tax incentives.
From tools that enable flexible and hybrid work to easy-to-navigate cloud-based platforms, companies that embrace the shared priorities of their current and future workforce will win. And by ‘win’, we mean, still be around in 5+ years to tell the tale.
Are you ready to catch a (tax) break?
Digital skills and hybrid, flexible work are the way of the future, but we also know that small businesses are struggling with record high costs while trying to remain competitive. And we think it’s time you caught a (tax) break.
If you are ready to say goodbye to: digital exclusion, poor visibility over tasks and goals, lack of clear role design, and falling behind in an industry that’s catapulting digital light years ahead.
And say a big high fivin’ hello to: greater efficiency, boosted productivity, higher employee engagement, and increased competitiveness on a global scale, then we want to hear from you.
Get in touch with our team to learn more
Chat to us about how Beamible can enable digital inclusion and upskill your workforce while giving you access to some much-needed tax deductions.
*For more information on how to claim the skills and training boost, visit the ATO website. Please note this article does not represent official tax advice and you should speak to your accountant for financial advice.