Claim more tax back on staff training
With the recent focus on the Federal election and big-ticket items stealing the show in the Federal Budget earlier this year, agency owners and principals should be aware of an extra tax deduction available for staff training.
On 29 March 2022, the former government announced that small businesses with an annual turnover of less than $50 million now have access to a new bonus 20 percent deduction for the cost of external training courses delivered to staff by providers registered in Australia.
The budget website says Australia’s small businesses employ around 7.8 million workers and the boost would encourage small businesses to invest in the skills of their employees or train new ones.
The boost applies to eligible expenditure incurred from Budget night until 30 June 2024.
Benefits for small business
During his budget speech, former Treasurer Josh Frydenberg outlined the benefit to small businesses: “Starting tonight, for every hundred dollars a small business spends on training their employees, they will get a $120 tax deduction.”
The government said the initiative would provide $550 million in tax relief for small businesses, supporting them to invest in their employees and grow their businesses.
You can also find out if their existing experience can be turned into a formal qualification through Recognition of Prior Learning.