Tax rebates for NSW employers

A payroll tax rebate for employers in NSW who employ apprentices and new entrant trainees.

The rebate is an offset against payroll tax based on wages paid to eligible apprentices and new entrant trainees and can be claimed monthly or annually as part of payroll tax returns.

To be eligible an employer must be employing an apprentice or new entrant trainee as defined in the Apprenticeship and Traineeship Act 2001 and the person must be approved by Training Services NSW (TSN).

For trainees, the rebate applies only where TSN defines the training type as “new entrant traineeship” (not “existing worker traineeship”).

For trainees the rebate only applies where the trainee has been continuously employed by the employer for no more than 3 months full-time or 12 months casual or part-time immediately prior to commencing employment as a trainee (as stated on the page).

The rebate can be claimed for wages paid during the eligible training period from the commencement date of their course until the date of completion or cancellation.

Group Training Organisations (GTOs) that pay wages are considered the employer under the Payroll Tax Act 2007 and only the GTO can claim the rebate for wages they pay.

Non-profit GTOs approved by TSN may have payroll tax exemption for wages paid and must hold a current payroll tax exemption (exemption status reviewed every 3 years).

Employers must correctly report apprentice and trainee wages in the “Apprentice and trainee wages” field in payroll tax returns and retain relevant records for at least 5 years, in English or easily translatable form, readily available if requested.