All wages (including superannuation, allowances and fringe benefits) paid to apprentices and trainees are liable for payroll tax.
However, you can claim a payroll tax rebate on wages paid to approved apprentices and only new entrant trainees.
The rebate can only be claimed on wages paid to apprentices/trainees that are approved by Training Services NSW under the Apprenticeship and Traineeship Act 2001. Different eligibility rules apply to apprentices and trainees.
The eligibility for the rebate on wages paid to trainees is dependent on Training Services NSW’s classification of the ‘training type’. If the training is classified as a:
For more information about the new entrant/existing worker status and how it’s determined, view the Training Services NSW new entrant trainee policy.
We rely on the apprentice and trainee register maintained by Training Services NSW. If you disagree with how your trainee is classified, you’ll need to contact Training Services NSW with your concerns.
You can claim the rebate on all wages paid to Training Services NSW approved apprentices for the period of their apprenticeship. No additional eligibility rules apply.
To receive the correct rebate, it’s important that you include your apprentice/trainee wages in the relevant field of the monthly calculator and/or annual reconciliation, while excluding the amount from other NSW wages.
Example: calculating the rebate manually
|With apprentice and trainee wages||Without apprentice and trainee wages|
|Apprentice and trainee wages||$80,000||nil|
|Total NSW wages||$240,000||$160,000|
|Rebate value = ($6,856.44 - $2,976.44) = $3,830.00|
If your company has interstate wages or other group members, changes to your threshold entitlement will affect the rebate you receive.
Not all jurisdictions treat apprentices and trainees the same. If an interstate jurisdiction allows a rebate in respect of apprentice and trainee wages, it doesn't reduce an employer's taxable wages in that jurisdiction. If apprentice and trainee wages are treated as exempt wages, they are excluded from the taxable wages declared in that jurisdiction.
Example: exempt wages
The employer pays interstate wages of $1 million, of which $150,000 is paid to apprentices and trainees in a jurisdiction where the wages are treated as exempt wages. In this case, interstate wages total $850,000.
Example: rebate scheme
The employer pays interstate wages of $1 million, of which $150,000 is paid to apprentices and trainees in a jurisdiction where a rebate scheme applies. In this case, interstate wages total $1 million.
A Group Training Organisation (GTO) recruits potential and/or existing apprentices and trainees under a training contract, and places them with a ‘host’ employer.
The GTO is responsible for paying any wages, allowances, superannuation, workers compensation, sick/holiday pay and other employment benefits. As such, the GTO is the employer under the Payroll Tax Act 2007 and they must declare the wages paid in their annual returns. Only they can claim the rebate relating to apprentices/ trainees.
‘Host’ employers aren't entitled to claim the rebate as the traineeship/apprenticeship isn't registered with them and they’re not considered the worker's employer.
A payroll tax exemption is available to certain GTOs.
Training Services NSW approved non-profit GTOs are exempt from payroll tax under the Payroll Tax Act 2007. Wages paid or payable to any employee who is employed by a Training Services NSW approved non-profit GTO are exempt wages.
Exempt wages include wages paid to:
Use payroll tax assist to help you meet your payroll tax obligations. It'll show you what wages are taxable.