Bonus tax deduction for small businesses accessing external training for their employees

Overview

Small businesses with an aggregated annual turnover of less than $50 million will be allowed an additional 20% tax deduction for external training courses delivered to employees by registered training providers.

The boost applies to eligible expenditure incurred from 7:30 pm AEDT on 29 March 2022 until 30 June 2024.

The expenditure must be:

• for the provision of training to employees of your business, either in-person in Australia, or online
• charged, directly or indirectly, by a registered external training provider that is not you or an associate of yours
• already deductible for your business under taxation law
• incurred within a specified period (between 7:30 pm AEDT or by legal time in the ACT on 29 March 2022 and 30 June 2024).

Check if you can apply

To access the small business skills and training boost, your business needs to be a small business entity. Your aggregated annual turnover must be less than $50 million for the income year in which you incur the expenditure.