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20% Bonus Tax Deduction on Training

Posted on April 8, 2022

20% Bonus Tax Deduction on Training

The Government is supporting small businesses to upskill their employees by introducing the Skills and Training Boost.

Under the Federal Budget 2022-23, small businesses (with aggregated annual turnover less than $50 million) will have access to a 20% bonus tax deduction for the cost of external training courses delivered to their employees by providers registered in Australia.

This means that for every $100 you spend on training, you can get a $120 tax deduction.

There is no limit on how much spending on training courses can be deducted by a small business at the bonus rate of 120%, but certain rules apply:

  • The course must be run by an external education provider
  • The training provider needs to be registered in Australia
  • In-house and on-the-job training is not eligible, nor is money spent training people who are not employees of the business.
  • The courses can be provided in person (only in Australia) or online.

This boost will apply to eligible expenditure incurred between 29 March 2022 (Budget night) and 30 June 2024.

Get in touch with Allara Learning to discuss your training requirements


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