Get in touch
Valuable Tax Deduction Opportunity for Small Businesses
25 October 2023
Are you a small business owner with an annual turnover of less than $50 million? Great news! You might be eligible for a 20% bonus deduction on eligible training expenses for your employees. Here's what you need to know:
What is the Small Business Skills and Training Boost?
- Small businesses can now claim an extra 20% tax deduction on top of their usual deductions for certain employee training expenses.
- This applies to costs incurred from 7:30 pm AEDT on 29 March 2022 until 30 June 2024.
Are You Eligible?
- Your business must have an aggregated annual turnover of less than $50 million.
- Training must be for employees (not business owners or independent contractors).
- Courses must be provided by registered training providers and already tax-deductible.
- Expenses must be incurred within the specified period.
What Can You Claim?
- Costs of external training courses for your employees provided by registered training providers.
- Incidental costs, such as books and equipment needed for the course, if charged by the training provider.
Exclusions:
- Training for non-employee business owners or independent contractors is not covered.
- Costs added by intermediaries, such as commissions or fees, are not deductible under this boost.
Special Note for R&D:
- Businesses claiming under the R&D tax incentive program can still claim the bonus deduction without affecting their R&D claims.
When Can You Claim?
- Deductions are generally claimed in the year expenses are incurred.
- For expenses from 7:30 pm AEDT 29 March 2022 to 30 June 2022, claim the full deduction in your 2021–22 return, and the 20% bonus in your 2022–23 return.
- For expenses incurred in the 2022–23 and 2023–24 income years, claim both the regular and bonus deductions in the respective year's return.
FBT Reminder:
- Keep in mind the potential Fringe Benefits Tax (FBT) consequences associated with training expenditure.
Action Needed:
- Ensure you're choosing eligible training providers.
- Keep detailed records of all relevant expenses.
Don't miss out on this valuable opportunity to invest in your employees' development while also receiving a tax benefit! Contact us today, and we can help you navigate the specifics and maximise your claims under this new initiative.
Latest News
We’re delighted to invite you to an exclusive session with Andrew Hunt, InvestSense's independent economist. Based in the UK, Andrew has a unique ability to read global economic trends and decipher what they mean for Australian investors.
Navigating Inheritances. Nicholes Family Law Partners Nadine Udorovic and Bec Dahl chat to Danny Archer and Damian McMahon. Together, they delve into the complexities of inheritances, offering valuable insights from both legal and financial perspectives on how to navigate this important topic.
Watch the video above from Thayne. As 2024 comes to a close I thought I'd take the opportunity and send a thank you note to you all as gratitude for your continued support and loyalty. Throughout 2024 we have experienced; 1. Exceptional investment returns from all asset classes and sectors: ASX 200 up 23% S&P 500 up 30% AUST. Bonds up ~4.5% INTERNATIONAL Bonds up ~6% Aust Retail Property Trust up 39% 2. This hopefully reminds you all that it's best to remain invested even when economic conditions are uncertain. 3. We are actively monitoring and keeping an eye on US economic data particularly to understand which direction inflation may head, how this will impact interest rates and currency valuations, will there be a resurgence of small companies, emerging markets and bond and property prices. 4. With our research team we are well positioned to keep on top of the ever changing landscape, making investment decisions to maximise returns and minimise risk with regular investment committee meetings and analysis of data. 5. For many of our actively managed investment portfolios we ranked in the top 5 if not top 10 of throughout the course of the year which is a testament to the structure of Mulcahy & Co offices, people, systems and processes that we continue to build on to provide a quality service and outcomes to you all. 6. Please remember here at Mulcahy & Co the Financial Planning team is a part of a bigger network incorporating Accounting, Lending and Legal to deliver Financial Security 360 to make sure all of your financial needs are met and complement each other to achieve your goals and objectives. Once again I'd like to thank you for your support and wish you and your families a Merry Christmas and happy new year. The Mulcahy & Co Financial Planning Team
We meet Accounting Partner Eamon and Mark from Compass Business Accountants who has joined the Mulcahy & Co Group operating from our Toowoomba, Queensland office. Host Gavin Nash talks to the pair who are operating from this thriving inland city and what services they offer their clients.
Quicklinks
Tools
Office Locations
Mulcahy & Co acknowledges all Aboriginal and Torres Strait Islander Traditional Custodians of Country and recognises their continuing connection to land, sea, culture and community. We pay our respects to Elders past and present.
Liability limited by a scheme approved under Professional Standards Legislation - A MEMBER OF LAW AUSTRALIA
Australian Financial Services Licence No. 340094
Mulcahy & Co Financial Services Pty Ltd is a credit representative (397076) of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence 391237)