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October 2022 Newsletter

Please click on the following link to view this month's newsletter for October 2022. We would like to highlight the following articles:-

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Bonus deduction for employee training proposal

To stem the tide of the current workforce shortage in many industries, the government has proposed a new temporary initiative that would give small businesses access to a bonus tax deduction equal to 20% of eligible employee training expenditure between 29 March 2022 and 30 June 2024.

 

The bonus deduction would be available to all entities that meet the definition of a small business entity (ie those with an aggregated annual turnover of less than $50 million) in the income year in which the eligible expenditure is incurred.

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Under the proposed measure, eligible expenditure would need to satisfy the following criteria:

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  •    expenditure must be for training employees, either in-person in Australia, or online;

  •    expenditure must be charged, directly, or indirectly, by a registered training provider;

  •    the registered training provider must not be the small business itself or an associate of the small business;

  •    the expenditure must already be deductible under taxation law

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This proposal is currently in the draft stage and undergoing consultation, and as such any deduction will not be available until the measure becomes law.

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Sale of principal home: extension of exemption

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In a bid to support pensioners and in conjunction with the announcement to reduce the eligibility age for downsizer super contributions, the government has introduced a measure to extend the existing assets test exemption under social security for principal home sale proceeds which a person intends to use to purchase a new principal home.

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Currently, when an age pensioner or other eligible income support recipient sells their principal home to either purchase or build another home, those proceeds are exempt from the assets test for up to 12 months. However, the proceeds will still be subject to deeming. An additional 12-month extension may be granted where the income support recipient has a continued intention to apply the sale proceeds to the purchase, build, rebuild, repair or renovation of a new principal home and has:

 

  •      made reasonable attempts to purchase, build, rebuild, repair or renovate their new principal home (eg signing a contract to purchase or renovate etc);

  •      made those attempts within a reasonable period after selling the principal home; and

  •      experienced delays beyond their control in purchasing, building, rebuilding, repairing or renovating their new principal home.

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​Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.

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