Investing in people, technology, and skills a boost for business in 2022 Federal budget

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Any business which wants to thrive in this competitive world we operate in must have a commitment to technology and skilling their workforce. We do a lot of work with business clients to get this right.

It is essential to ensure business owners and employees have the requisite technical skills to perform their jobs successfully.

Ensuring your people have they skills they need does not just lead to increased productivity and efficiency it also separates your business from others.

Happy people lead to happy clients and customers. It also assists in the retention of your workforce.

When it comes to technology, not only does it increase confidence in your business and productivity but it importantly it future proofs your business.

We often hear about how important it is for a business to be versatile and adaptable, and COVID-19 has certainly show us the importance of those concepts.

A business that can adapt to the ever changing environment it operates in through a commitment to technology is invariably a successful business.

When announcing the 2022 Federal budget Federal Treasurer Josh Frydenberg made two important statements being:

  • “Starting tonight, for every hundred dollars a small business spends on training their employees, they will get a $120 tax deduction, helping them become more productive and competitive” and
  • “From tonight, every hundred dollars these small businesses spend on digital technologies — like cloud computing, e-invoicing, cyber security and web design — will see them get a $120 tax deduction.

These two initiatives come into effect from 29 March 2022 to 30 June 2023 for technology investments and 30 June 2024 for staff training.

Cynically it could be said these impressive tax incentives are actually to compensate for one of our country’s most pressing economic problems, being our dismal performance in the space of productivity.

Let’s hope business economy embraces this.

Another initiative announced by the Treasurer was expanding employees expanding employee share schemes to more companies and employees and the removal of the cap for unlisted companies which could only previously issue only $5000 worth of shares to individual employees each year.

The new cap is $30,000 per year, but a sale or listing of the company was imminent, the employee can purchase more shares.

These initiatives will lead to less red tape and simplify employee share schemes.

How can FC Lawyers help?

FC Lawyers highly respected Business and Corporate team act for a range of business and have assisted them with all their legal and regulatory requirements relating to technology, training and employee entitlements.

Contact our team today to discuss your business needs.

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