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
- 2018-19.
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.
Example
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.
Also consider...
- Learn more from the public ruling on the temporary increase of the payroll tax rebate (PTAQ000.3).
- Last reviewed: 08 Aug 2018
- Last updated: 01 Jul 2018
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Office of State Revenue
- Call 1300 300 734 (Australia) or
+61 7 3179 2500 (overseas) - Send an email using our online enquiry form.