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 25% rebate is available from 1 July for these financial years:
A 50% rebate is available from 1 July for these financial years:
The rebate is automatically calculated when you enter your apprentice and trainee wages and lodge a return in OSRconnect.
From 1 July 2016, you can work out the rebate by multiplying 50% of the total wages paid to apprentices and trainees by 4.75% (payroll tax rate) for each return period in the applicable financial years.
An employer paid $50,000 in exempt apprentice/trainee wages for a 2017-18 monthly periodic return.
|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 reduced the employer's monthly periodic liability by $1,187.50.
The maximum rebate you can claim is equal to your payroll tax amount for the particular liability.
All rebate records must be kept for 5 years.
- Learn more from the public ruling on the temporary increase of the payroll tax rebate (PTAQ000.3).