Thinking of investing in your employees? It’s not too late!

“You don’t build a business, you build PEOPLE. And the PEOPLE build the business.”
                                                                                                                                Zig Ziglar

Several studies have shown that investing in people is profitable. A study conducted by The Census Bureau for the Federal Department of Education revealed a 10% increase in the educational attainment of a company’s workforce resulted in 8.6% increase in productivity. A 10% increase in the value of capital such as tools, buildings and machinery, produced only a 3.4% increase in productivity.

If you’ve been thinking about upskilling your employees or you’re paying for your employees’ external training, and you are a small business with an aggregated annual turnover of less than $50 million, you could be eligible to claim the skills and training boost.

The boost gives you an additional 20% bonus tax deduction for eligible expenditure incurred on training new and existing employees.

For those eligible, you can claim a deduction on expenditure incurred for external training courses delivered to your employees (either in-person in Australia or online). The training must be provided by a registered external training provider that is not you or an associate of yours.

Training expenses can include incidental costs related to the provision of training, provided they are charged by the registered training provider, such as the cost of books or equipment needed for the course.

You can’t claim expenditure for training you undertake yourself as a business owner (sole trader, partner in a partnership or independent contractor) but you can claim it for the provision of training to your employee.

You can’t claim costs added on an invoice by an intermediary on top of the cost of training, such as commissions or fees, as they are not charged directly or indirectly by the registered training provider.

If you are thinking of upskilling your employees It’s not too late, you still have time. The boost is available until 30 June 2024.



Naomi Aspromourgos