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:

  • 2009-10
  • 2010-11
  • 2011-12
  • 2015-16.

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

  • 2016-17
  • 2017-18.

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

For 2016-17 and 2017-18, 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.

Example

An employer paid $50,000 in exempt apprentice/trainee wages for a 2016-17 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.