If your business has an annual turnover of $50 million or less, you may be eligible to deduct an additional 20% of external training costs. If passed, this will apply to Owner Manager programs and courses.

Budget 2022-23. (2022). Budget Paper No. 2: Budget Measures. Retrieved from: Budget Paper No. 2 | Budget 2022-23

“The Government is introducing a skills and training boost to support small businesses to train and upskill their employees. The boost will apply to eligible expenditure incurred from 7:30pm (AEDT) on 29 March 2022 (Budget night) until 30 June 2024. 

Small businesses (with aggregated annual turnover of less than $50 million) will be able to deduct an additional 20 per cent of expenditure incurred on external training courses provided to their employees. The external training courses will need to be provided to employees in Australia or online, and delivered by entities registered in Australia. 

Some exclusions will apply, such as for in-house or on-the-job training and expenditure on external training courses for persons other than employees. 

The boost for eligible expenditure incurred by 30 June 2022 will be claimed in tax returns for the following income year. The boost for eligible expenditure incurred between 1 July 2022 and 30 June 2024, will be included in the income year in which the expenditure is incurred. 

This measure is estimated to decrease receipts by $550.0 million, and increase payments by $7.0 million over the forward estimates period.”

Further reading: Budget Paper No. 2 | Budget 2021-22