This year’s Federal Budget has recognised the importance of small to medium enterprises training and upskilling their employees. As part of his 2022/23 Budget speech, Treasurer Josh Frydenberg announced the Skills and Training Boost, which aims to make small businesses “become more productive and competitive.”
The initiative will allow businesses with an annual turnover of less than $50 million (an estimated 3.6 million businesses, employing 7.8 million Australians) to claim an additional 20 percent deduction on external training costs. This means that for every $100 SMEs spend on training their employees, they can claim a tax deduction of $120. Mr Frydenberg said, “No one knows better than a small business owner what skills they need in their employees.”
The scheme aims to drive future growth and productivity in small to medium businesses and attract and retain staff in our currently tight labour market.
To qualify, the training must be provided to employees in Australia or online and delivered by entities registered in Australia. There is no limit on the amount that small businesses can deduct, and the program runs until 30 June 2024.
Find more expert insights and analysis of the 2022-23 Federal Budget here.