The objective of government incentives is to contribute to the development of a highly skilled and relevant Australian workforce that supports economic sustainability and competitiveness for the future of Australia.
This incentive includes apprentices and employees on training contracts.
A training contract is signed between the employee, employer and the ApprentiCentre who administer training contracts on behalf of the Department for Training and Workforce Development.
Payment of incentives is subject to employers and employees signing up on training contracts satisfying eligibility criteria as set out in the Australian Apprenticeships Incentives Programme Guidelines.
Payroll Tax Exemption
In certain states, including Western Australia, New South Wales and Queensland, employees who are on a training contract are payroll tax exempt for the duration of their training contract or until completion of their program whichever is sooner. Eligibility criteria applies for NSW and QLD. All employees on training contracts in WA are payroll tax exempt.
Example for WA – Payroll Tax Exemption
Employee on $80,000 per year (payroll tax at 5.5% of salary) is exempt for duration of qualification, so for a 24 month contract this could equate to $8,800 payroll tax saving.
Read more information for the following states:
No payroll tax exemptions exist in South Australia, Tasmania or Victoria.
Eligibility criteria applies in some states. If in doubt individuals and organisations should speak directly with the Tax Agent in their respective state if they have any queries regarding eligibility.
To find out more speak with our Administration Team so that we can discuss with you the options and possible funding opportunities.