Let the MFAA unpack the Federal Budget and what it means for your business.
The Treasurer handed down the Federal Budget on Tuesday 29 March 2022. The Budget included incentives that could benefit your business. These incentives include:
Extension of Boosting Apprenticeship Commencements (BAC)
A 50% wage subsidy for employing eligible new trainees /apprentices. This scheme has been extended by three months, it now closes 30 June 2022
Under the scheme, employers recruiting new staff will receive a 50% wage subsidy of the eligible Australian apprentices’ wage in the first year, at a maximum value of $7,000 per quarter, per apprentice.
Visit the Department of Education, Skills and Employment website for more information.
Small Business Skills and Training Boost
An education allowance to encourage upskilling for your people,for every $100 spent on eligible education courses you will receive 120% tax deduction.
Eligible SMEs with an aggregated annual turnover of less than $50 million will be able to deduct an additional 20% of expenditure incurred on eligible training courses provided to employees.
Check the ATO website for more information.
Small Business Technology Investment Boost
An incentive to upgrade digital technology within your business. For every $100 spent on eligible business technology you will receive 120% tax deduction.
Eligible SMEs with an aggregated annual turnover of less than $50 million can deduct $120 for every $100 they spend on business expenses and depreciating assets that support their digital adoption. Eligible expenditure includes investments in websites, subscriptions to cloud-based services, e-invoicing and portable payment devices.
Up to $100,000 a year will be eligible for the bonus deduction which will apply to expenditure incurred in the period commencing from 7:30pm AEDT 29 March 2022 until 30 June 2023.
Check the ATO website for more information.
Extension of the Instant Asset Write Off Scheme
The Instant Asset Write Off Scheme eligibility criteria to encourage business investment has been extended until 30 June 2023. It will continue to allow businesses with annual turnover or total income less than $5 billion to instantly write-off the cost of purchasing new capital items (for example IT equipment and vehicles), helping businesses fund new purchases and investments in their growth.
Check the ATO website for more information.
Other funding opportunities
Your business may be eligible to receive funding from the Government to supplement your employment costs or training fees. The MFAA has worked with the Australian Skill & Assessment Centre (ASAC) to review the incentives and conditions required to achieve Government funding in taking on trainees in your business. These have been detailed in the report ‘A People Strategy for Broker Businesses Engage and Retain Employees via Inspire, Government Incentives’.
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