Document ID: chunk:federal_register_of_legislation:C2023A00029:clause:4_1:p1
Version: federal_register_of_legislation:C2023A00029
Segment Type: clause
Provision Reference: sch 4 cl 1 (pt 1/3)
Character Range: 60714–63322

1  After section 328‑440
Insert:

328‑445  Bonus deduction for upskilling employees of small business entities etc.

Initial bonus deduction—2022‑23 income year for normal or late balancers
 (1) You can deduct 20% of particular expenditure for the 2022‑23 income year if:
 (a) you are a small business entity, or an entity covered by subsection (4), for the income year in which you incur the expenditure; and
 (b) you incur the expenditure in the period:
 (i) starting at 7.30 pm, by legal time in the Australian Capital Territory, on 29 March 2022; and
 (ii) ending at the end of the 2022‑23 income year; and
 (c) you can deduct 100% of the expenditure under another provision of a taxation law (whether or not in, or wholly in, the income year in which the expenditure is incurred); and
 (d) section 328‑450 applies to the expenditure.

Initial bonus deduction—2023‑24 income year for early balancers
 (2) Subsection (1) does not apply if your 2022‑23 income year starts before 1 July 2022. Instead, you can deduct 20% of particular expenditure for your 2023‑24 income year if:
 (a) you are a small business entity, or an entity covered by subsection (4), for the income year in which you incur the expenditure; and
 (b) you incur the expenditure in the period:
 (i) starting at 7.30 pm, by legal time in the Australian Capital Territory, on 29 March 2022; and
 (ii) ending at the end of your 2023‑24 income year; and
 (c) you can deduct 100% of the expenditure under another provision of a taxation law (whether or not in, or wholly in, the income year in which the expenditure is incurred); and
 (d) section 328‑450 applies to the expenditure.

Later bonus deductions
 (3) You can deduct 20% of particular expenditure for an income year (the current year) if:
 (a) the current year is after:
 (i) if your 2022‑23 income year starts on or after 1 July 2022—your 2022‑23 income year; or
 (ii) if your 2022‑23 income year starts before 1 July 2022—your 2023‑24 income year; and
 (b) you are a small business entity, or an entity covered by subsection (4), for the current year; and
 (c) you incur the expenditure in the current year and before the end of 30 June 2024; and
 (d) you can deduct 100% of the expenditure under another provision of a taxation law (whether or not in, or wholly in, the income year in which the expenditure is incurred); and
 (e) section 328‑450 applies to the expenditure.

Businesses with turnover under $50 million
 (4) An entity is covered by this subsection for an income year if:
 (a) the entity is not a small business entity for the income year; and
 (b) the entity would