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Employers of apprentices can claim either of the two rebates listed below.
Who is eligible?
For employers of new or recommencing apprentices undertaking a Certificate III or higher qualification listed in the Australian Apprenticeship Priority List.
E.g. Certificate III in Roof Plumbing or Certificate III in Carpentry
Rebate types
The Priority Wage Subsidy is paid for a maximum of 3 years at the rate of:
Payments are made in arrears, with the first payment payable to eligible employers 3 months after commencement, followed by quarterly payments thereafter.
For example, if you hire a new apprentice earning $950 per week and have been on an apprenticeship for a year, you can receive the following rebate amount.
Apprentice’s quarter wages: $950 x 12weeks (quarter) = $11,400
10% of wages per quarter: $11,400 x 10% = $1,140 (maximum $1,500)
Rebate amount for the year: $1,140 x 4 (quarters) = $4,560
The employer can receive a maximum $6,000 rebate throughout the year if the apprentice’s annual salary is more than $60,000.
Who is eligible?
For employers of Australian Apprentices undertaking a Certificate II or higher qualification in an occupation which is NOT in a Priority Occupation List.
Rebate Types
*If you are hiring an apprentice with a disability, other rebates may be applied for.
NSW Payroll tax rebates
A company must include all wages* (including superannuation, allowances and fringe benefits) paid to apprentices and trainees in its wage payable amount for payroll tax purposes. However, you can claim the rebate on all wages paid to Training Services NSW approved apprentices for the period of their apprenticeship. No additional eligibility rules apply.
*All wages: If an employer receives a subsidy or incentive for wages paid to workers, the gross wages remain subject to payroll tax.
For example, suppose you're an employer who pays wages in NSW and is registered for payroll tax (pays 1.2 million+ wages annually). You have commenced an apprenticeship with some of your employees and paid $80,000 for apprentices this month. Your total monthly* wages payable claimed for payroll tax during the month was $240,000.
In this case, the employer can receive a $3,360 NSW payroll tax rebate for this month.
*For more details, refer to Payroll tax Rates and thresholds
If you employ an apprentice, you're entitled to a premium reduction of your icare insurance based on the wages paid to your apprentice.
To be eligible for the reduction you must:
icare will calculate the apprentice incentive amount based on the details you provide in your wages declaration form.
You may be eligible for Smart and Skilled Fee-Free Scholarships if the NSW Government’s Smart and Skilled Program funds the course fees.
Check your eligibility here.
For advice on Tax, BAS, GST, Bookkeeping, and Payroll issues visit us at ctkaccounting.com.au
