In today's fast-paced construction environment, employers in the construction industry are looking for every advantage they can get to stay ahead of the competition.

At SiteForce Recruitment, we are constantly looking for potential in our employees and are interested in their end-game: where they want to take their future, and how they want to improve their skills, opportunities and lives.

Time Quality and Cost are always the focus, so what if you looked at upskilling your employees, and the Government was willing to help you do that? Would that be of benefit to you and interest you?

Upskilling existing staff, or training new staff, has become more important than ever before, particularly to address helping to address our industry skills shortages. Employers who invest in the development of their employees can benefit from a more skilled and versatile workforce, which can translate to increased productivity, higher employee engagement, and improved retention rates.

By providing training and development opportunities, employers can equip their staff with the knowledge and skills needed to adapt to changing business needs, tackle new challenges, and stay ahead of the competition. Additionally, upskilling can help employers keep up with industry advancements and trends, which can be crucial in highly competitive markets such as ours.

Employees who feel valued and supported are more likely to be motivated and engaged, leading to higher levels of job satisfaction and lower turnover rates. In short, investing in upskilling employees can lead to a more agile, innovative, and successful business, with a team of dedicated and skilled professionals driving growth and success.

Fortunately the Government agrees, and the Labor Government announced in their last budget that they will back the Skills and Training Boost previously proposed. We should soon see these introduced into Parliament and become law, after seeking industry body contributions for discussion and review.

The measure supports small businesses to build a better trained and more productive workforce.

Businesses (with an aggregated annual turnover less than $50 million) will have access to a bonus deduction equal to 20 per cent of eligible expenditure on external training for employees.

The new tax incentive, which is available until 30 June 2024, will also create opportunities for employees to enhance their skills and contribute to the growth of the small business. 

6 Main Benefits of Upskilling Your Employees:

Upskilling employees can bring many benefits to both the employees and the employer. Here are some of the most significant benefits:

1. Improved productivity: Upskilling employees can enhance their knowledge and skills, making them more efficient and effective in their roles. This can result in higher productivity levels and better quality work.
2. Increased employee engagement: Offering training and development opportunities shows employees that their employer is invested in their growth and development. This can lead to increased motivation and engagement among employees, as they feel valued and supported in their careers.
3. Enhanced job satisfaction: When employees feel like they are growing and developing in their roles, they are more likely to be satisfied with their jobs. This can lead to improved retention rates and a more stable workforce.
4. Improved adaptability: In a constantly evolving business landscape, employees who have a diverse range of skills and knowledge are better equipped to adapt to changing circumstances and challenges.
5. Increased innovation: Upskilling employees can encourage creative thinking and innovative problem-solving, which can lead to new ideas and opportunities for growth.
   
6. Higher levels of customer satisfaction: When employees are highly skilled and knowledgeable, they are better able to meet the needs of customers, resulting in increased customer satisfaction and loyalty.

Overall, upskilling employees can help employers build a more skilled, engaged, and innovative workforce, leading to improved business performance and success.

The Basics of the Skills and Training Boost:

• The incentive is available to small businesses with an aggregated annual turnover of less than $50 million.
• You can deduct an additional 20% of expenditure incurred on eligible training courses provided to your employees. This means for every $100 you spend on training, you can get a $120 tax deduction.
• The course must be run by an RTO (external registered training organisation). An RTO will be registered by a state or territory regulatory authority to deliver training and/or conduct assessments and issue nationally recognised qualifications.
• The tax boost does not apply to courses run in-house or as part of on-the-job training.
• The course can be run in-person or on-line.
• The tax boost applies to eligible expenditure incurred up until 30 June 2024 (note this is one year more than the Technology Boost below).

The Basics of the Technology Investment Boost:

• Designed to help small business with the cost of going digital.
• The incentive is available to small businesses with an aggregated annual turnover of less than $50 million.
• You can deduct an additional 20% of the cost incurred on business expenses and depreciating assets that support ‘going digital’. This means for every $100 you spend on digital investment, you can get a $120 tax deduction.
• Examples of expenditure include portable payment devices, cyber security systems, subscriptions to cloud-based services or website design & development.
• The maximum you can claim is $100,000 each financial year.
• The tax boost applies to eligible expenditure incurred up to 30 June 2023 (note this is one year less than the Skills and Training Boost).

Basic example of how the deduction works:

An example of calculating the value of the bonus deduction offered by the Australian Treasury:

Construction Business Pty Ltd is a business entity that operates a residential building company. The business recently took on a new employee to assist with jobs across sites. The employee has some prior experience in working on building sites and is keen to upskill to become a plasterer. The business pays $3,500 (GST exclusive) for the employee to undertake external training in this area. The training is delivered by a registered training provider, whose scope of registration includes the construction industry.

The bonus deduction is calculated as 20 per cent of 100 per cent of the amount of expenditure that can be deducted under another provision of the taxation law. In this case, the full $3,500 is deductible under section 8 1 of the ITAA 1997 as a business operating expense. Assuming the other eligibility criteria for the bonus deduction are satisfied, the bonus deduction is calculated as 20 per cent of $3,500. That is, $700.

General rule: Bonus deduction to be claimed in the income year in which the expenditure is incurred.

Further information: You can find out more here:

Skills and Training Boost | Treasury.gov.au

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