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Apprentice and trainee rebate for payroll tax

If your apprentice and trainee wages are exempt from payroll tax, you can also claim a payroll tax rebate that reduces your payroll tax amount for the particular liability (periodic, annual or final return).

A 50% rebate is available from 1 July for these financial years:

  • 2016-17
  • 2017-18
  • 2018-19
  • 2019-20
  • 2020-21.

The rebate is automatically calculated when you enter your apprentice and trainee wages and lodge a return in OSR Online.

You can work out the rebate by multiplying 50% of the apprentice and trainee wages by the applicable payroll tax rate for each return period.

The subsidy component of the Australian Government JobKeeper payment is not taxable for payroll tax.

Example

A Brisbane-based company pays $450,000 in total Australian taxable wages. In July 2020, it pays $50,000 in exempt apprentice/trainee wages.

Initial payroll tax periodic liability (on all taxable wages) $10,000.00
Less incentive rebate ($50,000 × 50%) × 4.75% $1,187.50
Payroll tax periodic liability $8,812.50

The rebate reduces the employer's monthly periodic liability by $1,187.50.

The maximum rebate you can claim in a return period is equal to your payroll tax amount for that liability.

All rebate records must be kept for 5 years.

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