With the end of financial year here, below is a list of new rules and rates that you need to be aware of for your business.

Skills and training boost

For expenses until 30 June 2024, small and medium businesses with an aggregated turnover of less than $50 million will get a bonus 20% tax deduction on top of the allowable deduction for training their employees.

Eligible expenditure refers to external training courses delivered to a business’s employees by a training entity that is registered with:

– Australian Skills Quality Authority
– Tertiary Education Quality and Standards Agency
– Victorian Registration and Qualification Authority, or
– Training Accreditation Council of Western Australia.
In-house or on-the-job training is excluded from the bonus deduction.

Small business energy incentive

A small and medium business with an aggregated turnover of less than $50 million may be entitled to a 20% bonus deduction for expenditure that supports electrification and more efficient use of energy. The additional deduction will be available for eligible expenditure of up to $100,000 and is therefore capped at $20,000 for each business.

This temporary measure will apply to eligible assets or upgrades first used or installed ready for use between 1 July 2023 and 30 June 2024.

Division 7A rate

The Division 7A ATO benchmark interest rate for 2023-24 is 8.27%.

Superannuation guarantee rate change

From 1 July 2024, the superannuation guarantee obligation for employers will rise from 11% to 11.5% for contributions made for employees.

If you need to know more about the items discussed here, please contact our office for more information.