In the 2022 federal budget the Government introduced a remarkable opportunity: a 120% deduction for skills training and technology costs - to encourage businesses like yours to invest in growth-oriented initiatives!
This incentive not only helps to foster innovation but also provides substantial tax benefits for your company. However, time is of the essence, as the due date for claiming this deduction is fast approaching.
The Deadline Reminder
The deadline for claiming the 120% deduction for skills training and technology costs is quickly approaching.
Due date:
● Technology Investment Boost (30 June 2023 – one month left)
● Skills & Training Boost (extended to 30 June 2024)
Summary of the 120% Deduction:
The 120% deduction for skills training and technology costs is an initiative designed to spur economic growth by encouraging businesses to invest in their employees' development and embrace cutting-edge technology.
Under this scheme, with the 120% deduction, you can claim an additional 20% on top of the actual expenses incurred for skills training programs and qualified technology purchases from your taxable income.
Timing
Two investment ‘boosts’ will be available to small and medium businesses with an aggregated annual turnover of less than $50 million:
● Technology Investment Boost (From 7.30pm ACT, 29 March 2022 to 30 June 2023)
● Skills & Training Boost ( From 7.30pm ACT, 29 March 2022 to 30 June 2024)
For expenditures incurred between 29 March 2022 and 30 June 2022, the additional 20% ‘boost’ deduction will not be claimable until the 2022-23 tax return.
For expenditures incurred on or after 1 July 2022 will be included in the income year in which the expenditure is incurred.
Technology Investment Boost:
The 120% deduction applies to qualified technology costs, allowing you to deduct 120% of your expenses on eligible hardware, software, cloud services, and other technological investments. The boost is capped at $100,000 per income year with a maximum deduction of $20,000.
When it comes to expenditure on depreciating assets, the bonus deduction is equal to 20% of the cost of the asset that is used for a taxable purpose. This means that, regardless of the method of deduction that the entity takes (i.e., whether immediate or over time), the bonus deduction in respect of a depreciating asset is calculated based on the asset’s cost.
Eligibility & requirements:
● The expenditure must be eligible for deduction (salary and wage costs are excluded)
● The expenditure must have been incurred between 7.30pm (AEST), 29 March 2022 and 30 June 2023
● If the expenditure is on a depreciating asset, the asset must be first used or installed ready for use by 30 June 2023.
● total of eligible expenditure of up to $100,000 per income year or specified time period, up to a maximum bonus deduction of $20,000 per income year or specified time period.
● To be eligible, the expenditure must be wholly or substantially for the entity’s digital operations or digitising its operations.
Example of expenditures:
The eligible expenditure must have a direct link to the entity’s digital operations for its business.
For example:
● digital enabling items – computer and telecommunications hardware and equipment, software, systems and services that form and facilitate the use of computer networks;
● digital media and marketing – audio and visual content that can be created, accessed, stored or viewed on digital devices; and
● e-commerce – supporting digitally ordered or platform enabled online transactions.
Repair and maintenance costs can be claimed as long as the expenses meet the eligibility criteria.
Where the expenditure has mixed use (i.e., partly private), the bonus deduction applies to the proportion of the expenditure that is for an assessable income producing purpose.
The bonus deduction is not intended to cover general operating costs relating to employing staff, raising capital, the construction of the business premises, and the cost of goods and services the business sells.
Exclusions:
Some types of expenditure are ineligible for the bonus deduction even where they would otherwise meet the requirements. These are:
● salary and wage costs;
● financing costs;
● training and education costs; and
● expenditure that forms part of, or is included in, the cost of trading stock;
● capital works costs which can be deducted under Division 43 of the ITAA 1997.
We strongly urge you to evaluate your technology needs, consult with relevant experts, and make the necessary investments before the deadline.
Skills & Training Boost:
Investing in your employees' professional development is crucial for the long-term success of your business. These programs can include workshops, seminars, courses, certifications, and other forms of training aimed at enhancing the skills and knowledge of your workforce.
Eligibility & requirements:
To be eligible for the bonus deduction:
● The expenditure must be for training employees, either in-person in Australia, or online
● The expenditure must be charged, directly or indirectly, by a registered training provider and be for training within the scope (if any) of the provider’s registration
● The registered training provider must not be the small business or an associate of the small business
● The expenditure must be deductible
● Enrolment for the training must be on or after 7.30pm, 29 March 2022.
The training must be necessarily incurred in carrying on a business for the purpose of gaining or producing income. That is, there needs to be a nexus between the training provided and how the business produces its income.
Only the amount charged by the training organisation is deductible. In some circumstances, this might include incidental costs such as manuals and books, but only if charged by the training organisation.
Exclusions:
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 training boost is not available to:
● Sole traders, partners in a partnership, or independent contractors (who are not employees)
● Associates of the business such as a relative, spouse or partner of an entity or person, a trustee of a trust that benefits an entity or person and a company that is sufficiently influenced by an entity or person.
Reference:
Chinese translate (中文翻译)
不要错过: 技能培训和技术成本的 120% 抵税
为了鼓励像您这样的企业投资于以增长为导向的计划，在 2022 年联邦预算中，政府引入了一个非凡的机会：对技能培训和技术成本进行 120% 的减免。 这种激励措施不仅有助于促进创新，还可以为您的公司提供可观的税收优惠。 然而，时间至关重要，因为申请这项抵税的截止日期很快就要到了。
120% 抵税总结：
技能培训和技术成本的 120% 抵税是一项旨在通过鼓励企业投资于员工发展和采用尖端技术来刺激经济增长的举措。 根据该计划，您可以从您的应税收入中抵税符合条件的技能培训计划和购买符合条件的技术所产生的费用的 120%。
截止日期提醒：
为确保您不会错过这个绝佳的机会，请务必在截止日期前采取行动。 申请技能培训和技术成本 120% 抵税的截止日期很快就要到了。
到期日：
• 技术投资促进（2023 年 6 月 30 日 – 还剩一个月）
• 技能和培训提升（延长至 2024 年 6 月 30 日）
因此，我们强烈建议您评估您的培训和技术需求，咨询相关专家，并在截止日期前进行必要的投资。
技术成本120%抵税：
120% 的抵税适用于合格的技术成本，允许您抵税 120% 的合格硬件、软件、云服务和其他技术投资费用。
资格要求：
• 支出必须符合抵税条件（出于这些规则的目的，不包括工资和工资成本）
• 支出必须在 2022 年 3 月 29 日至 2023 年 6 月 30 日晚上 7 点 30 分（澳大利亚东部标准时间）之间发生
• 如果支出是折旧资产，则该资产必须在 2023 年 6 月 30 日之前首次使用或安装准备就绪。
• 每个收入年度或指定时间段内符合条件的支出总额最高为 $100,000，每个收入年度或指定时间段内的最高奖金抵税额为$20,000 。
• 要符合资格，支出必须全部或大部分用于实体的数字化运营或数字化运营。
符合条件的支出示例：
符合条件的支出必须与其业务的实体数字运营有直接联系。
例如：
• 数字使能项目——构成和促进计算机网络使用的计算机和电信硬件和设备、软件、系统和服务；
• 数字媒体和营销——可以在数字设备上创建、访问、存储或查看的音频和视频内容； 和
• 电子商务——支持数字化订购或支持平台的在线交易。
只要费用符合资格标准，就可以申请维修和保养费用。
如果支出具有混合用途（即部分私人用途），需要抵税适私人用途的支出比例。
另外不能包括与雇用员工、筹集资金、营业场所建设以及企业销售的商品和服务成本相关的一般运营成本。
不符合的支出举例：
某些类型的支出即使在其他方面符合要求，也没有资格获得奖金抵税。 这些都是：
• 工资和工资成本；
• 融资成本；
• 培训和教育费用； 和
• 构成或包含在股票交易成本中的支出；
• 可根据 ITAA 1997 第 43 部分抵税的基本成本。
技能培训120%抵税：
投资于员工的专业发展对于企业的长期成功至关重要。有了 120% 的抵税，您可以在符合条件的培训计划实际产生的费用之上额外申请 20%。这些计划可以包括研讨会、研讨会、课程、认证和旨在提高员工技能和知识的其他形式的培训。
资格要求：
• 支出必须用于培训员工，可以是在澳大利亚面对面培训，也可以是在线培训
• 费用必须由注册培训机构直接或间接收取，并且是在该机构注册范围内（如有）的培训
• 注册培训提供者不得是小型企业或小型企业的关联方
• 支出必须可以抵税
• 必须在 2022 年 3 月 29 日晚上 7 点 30 分或之后报名参加培训。
培训必须是为了获得或产生收入而进行的业务所必需的。 也就是说，所提供的培训与企业如何产生收入之间需要存在联系。
只有培训机构收取的费用可以抵税。 在某些情况下，这可能包括附带费用，例如手册和书籍，但前提是培训机构收取费用。
不包括：
一些例外情况将适用，例如内部或在职培训以及员工以外人员的外部培训课程支出。 培训提升不适用于：
• 个体经营者、合伙企业合伙人或独立承包商（非雇员）
• 企业的相关人员，例如实体或个人的亲属、配偶或合伙人，使实体或个人受益的信托的受托人，以及受实体或个人充分影响的公司。
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