That’s right, the incentive that was put on ice during the election campaigning is back on the table!
Treasury has released draft legislation which will introduce a "Skills and Training Boost" to support small businesses to train and upskill their employees.
The boost will apply to eligible expenditure incurred from 7:30 pm (AEDT) on 29 March 2022 until 30 June 2024 (s 328-445 and s 328-450 of ITAA 1997).
The measure will allow small businesses with an aggregated annual turnover of less than $50 million to deduct 20% in addition to an existing available deduction for eligible expenditure incurred on external training for employees, ie 120%.
So, what's the catch? The expenditure must be incurred on external training delivered to their employees by training providers registered in Australia, such as ours.
Generally, small businesses will be able to claim the bonus deduction in the income year in which the expenditure is incurred, but there are special rules for early and late balancers.
The Treasurer states that legislation is expected to be introduced into Parliament this year. We will keep you posted as this legislation progresses.
Interested in the benefits of a training session now that the incentives are back on? Visit our website www.ausmanagement.com.au or ask our team on 02 6285 4888 and courses@ausmanagement.com.au about tailored, personalised options.