Date posted: 26/09/2022

Submission on the skills and training deduction boost draft legislation

Small business access to the 120% deduction for training needs clarification about what qualifies and when in the legislation

With record low unemployment and a need to increase productivity and skill flexibility the introduction of a skills and training boost is welcomed. 

The draft legislation broadly allows a small business to claim 120% of the cost of training provided to an employee that is delivered by a registered provider if the arrangements/enrolments for training occur after 29 March 2022.  

CA ANZ’s submission asks for clarification of whether:

  • A single subject (e.g. an audit module) which commences after 29 March 2022 that is part of a course (e.g. an accounting degree or CA Program) that commenced before 29 March 2022 can access the skills and training bonus provided other conditions are met.
  • A single subject which commences after 29 March 2022 that is provided by a registered provider but does not result in a qualification can access the skills and training bonus.
  • The arrangement of training occurs prior to 29 March 2022 but the enrolment of a particular staff member into the training occurs after 29 March 2022. 
  • Many businesses will only reimburse an employee for the cost of study upon successful completion of the course (either by subject or a whole course). This could be a general human resources policy rather than a specific arrangement with an employee. Would reimbursement for a course commenced before 29 March 2022 but completed after 29 March 2022 qualify for the 20% bonus deduction?
  • Training that is provided digitally to employees permanently located oversees can qualify for the skills and training boost.

CA ANZ also calls for consideration to be given to:

  • extending the skills and training boost to include continuing professional development that is undertaken with an Australian based professional body that is subject to the Professional Standards Scheme.  
  • Reducing compliance costs for small business by requiring training providers to provide their registration details and course number on quotes/invoices to small businesses.

Treasury Consultation 

Skills and training boost.

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