Apprentice and trainee rebate for payroll tax

The wages you pay to apprentices and trainees are generally exempt from payroll tax.

As an employer of exempt apprentices and trainees, you can also claim a payroll tax rebate that reduces your periodic liability.

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.


An employer paid $50,000 in exempt apprentice/trainee wages for a 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 the amount of your periodic liability.

All rebate records must be kept for 5 years.


Office of State Revenue

  • Call 1300 300 734 (Australia) or
    +61 7 3227 6044 (overseas)
  • Send an email using our online enquiry form.