In the budget last night were measures that will benefit newsagents investing in a technology update. This is covered in detailed reporting from the ABC.
Instead, the government is offering a new, temporary tax break for businesses that invest in either new technology or employee training and skills development.
“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,” Treasurer Josh Frydenberg said in his speech.
This means employee training gets a bonus tax break. It respects the value of training. There are rules, of course, but they focus on training people. It will be interesting to see if any software companies now introduce a training cost.
“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.
This is a clear message about digital transformation, something newsagents need to embrace, urgently.
Of course I am biased in commenting that these moves are good, I own Tower Systems, the company serving around 60% of all newsagents in Australia with cloud based newsagency software and the company that has already developed websites for many newsagents.
But realistically, incentivising digital transformation in small business is a good move.
I don’t think a change of government would change this initiative.