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Don’t blink and miss the Digital and Skills Tax Boosts for salons

Unless you were having a snooze under a rock, you might’ve heard that the Australian Federal Budget was announced on March 29th. And there was a whole heap of good stuff in there for small salon, spa and barbershop owners that might tickle your fancy.

Not using Shortcuts yet? What are you waiting for?! Speak to our sales team today and find out how to make the most of these amazing tax-time bonuses with a Shortcuts system in your business.

One thing that caught our eye was the Digital and Skills Tax Boosts for small businesses. In short, the government announced that they’re dedicating $1.6 billion in tax relief to support small businesses to get teched up and skilled up! Yep, they’re giving you a Technology Investment Boost and Skills and Training Boost for the ultimate business skill-up double-whammy. You can check out the government’s official article about the boosts here, 👀 but here’s how it might work for you if you’re a small salon, spa or barber business owner.

Please note: The information provided here is for general education purposes only and is not intended to constitute specialist or personal financial or tax advice. This content has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should consider the appropriateness of the advice to your own situation and needs before taking any action and seek advice from a tax professional. It should not be relied upon for the purposes of entering into any legal or financial commitments.

What the Technology boost means for you

The Government’s Technology Investment Boost intends to cut the cost of going digital and support small businesses to invest more in digital solutions in their business. It will provide tax relief of $1 billion in total for small businesses – which is a pretty penny if you ask us! 💸

More than 3.6 million small businesses (yep, that means salons, barbers, and clinics too!) with an annual turnover of less than $50 million will be able to claim a bonus 20% deduction for the cost of expenses and depreciating assets relating to tech, up to $100,000 of expenditure per year.

So basically you can claim on subscriptions to your salon software (aka Shortcuts! 🙌), subscriptions to cloud-based services (like your accounting system), cyber security tools, and portable payment devices, like the zero cost ShortcutsPay Terminal.

If you haven’t got one yet, the ShortcutsPay Terminal is going to save you big bucks 🤑 on transaction fees. Not to mention the super cheap terminal rental at just $30 a month (which is cheaper than most other providers!) Plus, now thanks to the Technology Boost you can claim a bonus 20% deduction on it! Bit of a win-win if you ask us.

If you’re a current Shortcuts customer, it also seems like a no-brainer to us to use the Technology Boost to claim on your Shortcuts subscription. And if you’re not a customer just yet – now is literally the perfect time. PLUS, you can choose to either pay your subscription monthly, or an annual subscription upfront. Paying for an annual subscription before the end of this financial year could help maximise your deductions. 🔥Click here to book a demo of Shortcuts!🔥

The Technology Boost will apply to expenditure incurred from 7:30pm (AEDT) on 29 March 2022 (Budget night) until 30 June 2023.

And if you aren’t using Shortcuts yet? There’s still time to make the change, and make the most of these bonuses.  Speak to our sales team today and elevate your business with Shortcuts.

What the Training Boost means for you

The other little Federal Budget gift for small businesses is the Skills and Training Boost. This boost intends to encourage businesses to train new staff and upskill existing staff to help your business grow and progress! They will provide $550 million tax relief for this part of the budget.

As with the Technology Boost, small businesses will be able to claim a bonus 20% deduction for the cost of external training courses delivered to employees in Australia or online, by providers registered in Australia.

So basically, any education for your new and existing team members on products, techniques, and skills that will better their professional development can be claimed on with the Training Boost! This includes web training in Shortcuts 👏

If you’ve been wanting to upskill your team to get the most out of Shortcuts, or even refresh your team’s skills, our training packages are for you! You can purchase directly from the Shortcuts Shop by clicking here. 👈

You can choose to purchase training packs to upskill in certain areas of the software, like the 1 hour Client Management Overhaul pack or 2 hour Stock Pro pack. Or go all out and do a training overhaul with the 3 hour Front of House Basics pack, or even the 8.5 hour Salon/Spa Coordinator Bootcamp. 📚

Yep – thanks to the Training Boost remember you can claim a bonus 20% deduction on all of these training packages!

This boost will apply to eligible expenditure incurred from Budget night until 30 June 2024 (psst – that’s an extra year longer than the Technology Boost!)

Interested to know what other good stuff is in the Budget for your small business salon, spa, or barbershop? Check out the governments article here.

You can also learn more about general business tax deductions on the ATO website here.

Don’t forget – you can make the switch to Shortcuts today.  Speak to our sales team today and make the most of tax time savings.

Caitlin Adamson

Caitlin Adamson is a passionate creative and analytical thinker who brings her love for the written word to the marketing world. She brings her fresh outlook to the Shortcuts team and strives to create strategic and engaging collateral to help salons, spas, clinics and barbers to tackle their business endeavours with confidence.

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