Treasury has released draft legislation which will introduce a "Skills and Training Boost", which was previously announced as part of the 2022-23 Budget, 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.
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%, with an annual cap of $100,000. The expenditure must be incurred on external training delivered to their employees by training providers registered in Australia.
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 the Parliament this year.
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If you require advice on how this boost applies to your circumstances, please contact us via email info@xwd.com.au or call us on 03 6292 6012.
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