It’s not too late to claim the small business skills and training boost.

If you are a small business owner and paying for your employees external training, you could be eligible to claim the skills and training boost.

One of the key motivators for employee recruitment and retention is training and development. If you are thinking of motivating staff and upskilling your workforce, the skills and training boost is available up to 30 June 2024.

In today’s highly competitive business environment continuous training and development programs are essential to many organisations because:

  • They help in staff motivation and retention by making employees feel valued.
  • Provide individuals and teams with new skills and knowledge, and ensure they are upskilled with the latest technology or legislated developments.
  • Improve productivity and performance which improves the bottom line.

So, why not take advantage of the skills and training boost and receive a bonus tax deduction!
If your business has an aggregated turnover of less than $50 million you may be eligible for the small business skills and training boost.

Organisations that incur expenditure training new and existing employees would receive an additional 20% bonus tax deduction.

What training is eligible?

Training must be provided by a registered training provider. However, external training courses can be either in person in Australia, or online.
Expenditure must be for:

  • The provision of training your employees, either in person in Australia, or online.
  • Charged by a registered external training provider that is not you, or an associate of yours.
  • Already deductible for your business under tax law.
  • Incurred within the specified period (between 7.30 pm AEDT 29 March 2022 and 30 June 2024).

What expenses are included?

Small businesses can claim the bonus deduction for the provision of training to one or more employees of your business.

Training expenses can include incidental costs related to the provision of training, provided they are charged by the registered training provider. This can include the cost of materials such as books and or equipment required for the course.

If your business is registered for GST and the training is not GST-free, the bonus deduction is calculated on the GST exclusive amount plus any GST you cannot claim as a GST credit in carrying on your business.

In addition, there may be fringe benefits tax consequences associated with the training expenditure you incur.

What small businesses can’t claim:

  • Training of non-employee business owners such as sole traders, partners in a partnership, or independent contractors.
  • Costs added on an invoice by an intermediary in addition to the training, such as commissions or fees, because they are not charged directly or indirectly by the registered training provider.

Claims for skills training and development deductions can be claimed in the year the expenses are incurred.

If you would like in-depth information on the small business skills and training boost go to: small-business-newsroom/can-you-claim-the-small-business-skills-and-training-boost

Expertise and support when you need it.

Should you need any assistance or professional advice concerning these and other tax measures, please make a time for a chat with a Bentleys business advisor. We can help you to get where you want to be.


Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.