I recently read an article which I received from our accountant, More than Tax which I found very interesting and can apply to businesses wanting to upskill their employees in areas that complement their position. Languages can be an important addition to your staff skillset and not only improve cross cultural tolerance, customer relations but also improve your B2B interactions.
The Skills and Training Boost gives an employer a 120% tax deduction for external training courses provided to employees. The aim of this boost is to help SMEs grow their workforce, including taking on less-skilled employees and upskilling them using external training to develop their skills and enhance their productivity.
Sole traders, partners in a partnership, independent contractors and other non-employees do not qualify for the boost as they are not employees. Similarly, associates such as spouses or partners, or trustees of a trust, don’t qualify.
The Skills and Training Boost gives an employer a 120% tax deduction for external training courses provided to employees. The aim of this boost is to help SMEs grow their workforce, including taking on less-skilled employees and upskilling them using external training to develop their skills and enhance their productivity.
Sole traders, partners in a partnership, independent contractors and other non-employees do not qualify for the boost as they are not employees. Similarly, associates such as spouses or partners, or trustees of a trust, don’t qualify.
As always, there are a few rules:
- Registration for the training course had to be from 7:30pm (AEST) on 29 March 2022 until 30 June 2024. If an employee is part the way through an eligible training course, enrolments in courses or classes after 29 March 2022 are eligible, not before.
- The training needs to be deductible to your business under ordinary rules. That is, the training is related to how the business earns its income.
- A registered training provider needs to charge your business (either directly or indirectly) for the training (see What organisations can provide training for the boost).
- The training must be for employees of your business and delivered in-person in Australia or online.
- The training provider cannot be your business or an associate of your business.
Not all courses provided by training companies will qualify for the boost; only those charged by registered training providers within their registration. Typically, this is vocational training to learn a trade or courses that count towards a qualification rather than professional development.
As VLLC is a Registered Training Organisation with ASQA (Australian Skills Quality Authority) we are able to offer this training in learning Japanese, Mandarin Chinese, Indonesian, French, German, Spanish, Italian, Greek, Korean, Russian and Arabic. Contact VLLC to start your staff training within the relevant time frame (29th March 2022 - 30th June 2024).
This article was originally published in the 'Your Knowledge' newsletter. Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
As VLLC is a Registered Training Organisation with ASQA (Australian Skills Quality Authority) we are able to offer this training in learning Japanese, Mandarin Chinese, Indonesian, French, German, Spanish, Italian, Greek, Korean, Russian and Arabic. Contact VLLC to start your staff training within the relevant time frame (29th March 2022 - 30th June 2024).
This article was originally published in the 'Your Knowledge' newsletter. Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
