As a small business owner, you likely invest in employee training to keep your team skilled and competitive. What you might not realise is that these training expenses spent could qualify you for additional tax deductions under the Small Business Skills and Training Boost. This incentive, designed to support the upskilling of employees, offers an extra 20% tax deduction on eligible training costs.
Understanding the Skills and Training Boost
The Small Business Skills and Training Boost is a valuable tax boost for businesses with an annual turnover of less than $50 million. This tax incentive applies to eligible training expenses incurred between 29 March 2022 and 30 June 2024.
Eligibility Criteria
To qualify for this tax boost, your business must meet the following criteria:
- Annual Turnover: Your business should have an aggregated annual turnover of less than $50 million.
- Employee Training: The training must be provided to your employees (not business owners) and conducted either in-person within Australia or online.
- Registered Providers: The training must be delivered by a registered training provider. You can verify provider registration at training.gov.au or teqsa.gov.au/national-register.
- Tax Deductibility: The training costs should already be deductible under current taxation laws.
- Specified Period: The expenses must be incurred between 7:30 pm AEDT on 29 March 2022 and 30 June 2024.
What You Can Claim
The 20% bonus deduction applies to a broad range of training expenses, including:
- Direct costs of training courses
- Incidental costs such as books or equipment, provided they are charged by the registered training provider
- Online and in-person training sessions
If your business is registered for GST, the bonus deduction is calculated on the GST-exclusive amount plus any GST you cannot claim as a GST credit.
What You Cannot Claim
Certain expenses are not eligible for this tax boost, including:
- Training costs for non-employees, such as business owners or independent contractors
- Costs added by intermediaries, such as commissions or additional fees not charged by the training provider
Additional Considerations
If you are also participating in the Research and Development (R&D) Tax Incentive program, it’s important to note that the bonus deduction does not affect the R&D notional deduction amount. Both deductions can be claimed, but they are calculated separately.
Conclusion
The Small Business Skills and Training Boost is a significant opportunity for you to maximise your tax deductions and support your workforce development. If your business has invested in employee training between 29 March 2022 and 30 June 2024, it’s worth reviewing these expenses to see if you qualify for this additional 20% tax deduction. This incentive not only helps in reducing your tax burden but also underscores the value of continuous employee development.
Stay informed and ensure you’re taking full advantage of the available tax incentives to support and grow your business. For further information and assistance, consult with your accounting professional or visit the official government resources.
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Disclaimer
This article serves as general information only and may not account for the unique circumstances of individual readers. For personalised and strategic solutions tailored to your specific situation, we invite you to seek professional advice from Chan & Naylor. Our highly experienced team is dedicated to helping you navigate the complexities of Australian taxation, ensuring that your financial strategies align with the latest regulations. Contact us today to embark on a path of informed and customised tax planning for your property investments.
