How can I spend $1 and deduct $1.20?

It is not often that a small business can deduct more than the expenses it has incurred. This is likely to change with a particular announcement in the 2023FY budget released by the Australian treasury on March 29^th 2022.

Small Business skills and training boost

The small business skills and training boost will allow businesses with an aggregated turnover of less than $50m to deduct $1.20 for every $1 spent on training courses for their employees through registered providers.

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Eligible Businesses

Eligible businesses must meet the criteria of a small business according to section 328-110 of the ITAA 1997 except that the reference to $10m turnover is replaced with $50m.

Eligible Expenditure

Eligible expenditure is capped at $100,000 per income year and includes expenses for training and upskilling employees through registered providers such as:

·       NVR registered training organisation (within the meaning 27 of the National Vocational Education and Training 28 Regulator Act 2011

·       Registered higher education provider

·       Registered education and training organisation (within the 33 meaning of the Education and Training Reform Act 2006 34 (Vic.))

·       Registered training provider (within the meaning of the 36 Vocational Education and Training Act 1996 (WA)).

Period of Expenditure

Training agreements must be entered into and expenses incurred between 29 March 2022 and 30 June 2023

How do you claim the Small Business skills and trainingboost?

The small business skills and training boost is claimed on your 2023FY tax return.

For help with your 2023FY tax return contact CTK Accounting, based in Wollongong servicing clients all over Australia.

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