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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.


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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