Members of The Master Plumbers and Gasfitters Association of WA stand to benefit from the 2022-23 Federal Budget.

They are among the small business owners who will be able to use the Budget’s financial incentives to upgrade their digital technology, upskill their staff and reduce the cost of employing apprentices.

120% tax deduction for digital technology expenditure

Businesses with an annual turnover less than $50 million will be eligible for a 120 per cent tax deduction on money they spend on digital technologies, such as cloud computing, electronic invoicing, portable payment devices, cyber security and web design.

There is a cap of $100,000 per year on the expenditure they can claim.

The extra deduction will apply to expenditure incurred from 7:30 pm (AEDT) on 29 March 2022 until 30 June 2023.

120% tax deduction for external training courses

Businesses with an annual turnover less than $50 million will be eligible for a 120 per cent tax deduction on the cost of external training courses for employees. Training courses must be provided to employees in Australia or online and delivered by training organisations registered in Australia.

In-house courses and on-the-job training are not eligible.

This extra deduction will apply to eligible expenditure incurred from 7:30 pm (AEDT) on 29 March 2022 until 30 June 2024.

Employing apprentices

Boosting Apprenticeship Commencements (BAC) and Completing Apprenticeship Commencements (CAC) wage subsidies

The Budget extends the Boosting Apprenticeship Commencements (BAC) program for a further three months until 30 June 2022. Any business or Group Training Organisation that engages an Australian Apprentice between 5 October 2020 and 30 June 2022 may be eligible for a wage subsidy of 50 per cent of wages paid to a new or recommencing apprentice or trainee for a 12-month period from the date of commencement, to a maximum of $7,000 per quarter.

After 12 months of BAC support, an employer will be eligible to transition to the Completing Apprenticeship Commencements (CAC) wage subsidy for the second and third years of an apprenticeship. Under the CAC, eligible employers will receive a 10 per cent wage subsidy in the second year of an eligible apprenticeship, up to a maximum of $1,500 per quarter per apprentice, and a five per cent wage subsidy in the third year of their apprenticeship, to a maximum of $750 per quarter per apprentice.

For more information about these programs, see Boosting Apprenticeship Commencements and Completing Apprenticeship Commencements.

Australian Apprenticeships Incentive System starting on 1 July 2022

A new Australian Apprenticeships Incentive System will start on 1 July 2022 with the and aim of increasing the number of apprentices in priority trades. This includes plumbing and gasfitting, both of which are on the Australian Apprenticeship Priority List.

The new system will provide employers in priority trades with wage subsidies of $4,500 in the first year and $4,500 in the second year.

From 1 July 2022 to 30 June 2024, apprentices and trainees in priority trades will get direct payments of up to $5000. This will consist of $1250 paid every six months for their first two years. From 1 July 2024, they will receive up to $3000 ($750 every six months for their first two years).

For more information about this program, see Financial Support for Australian Apprentices.

For more information about the 2022-2023 Federal Budget

See the Australian Government’s budget website.