Advice and Instructions
NSW State Government
Incentives for Apprentices, Trainees and their Employers
$200 Gear Up Allowance for Apprentices from
1 January 2008
Apprentices in New South Wales
will benefit from a $200 Gear Up clothing allowance introduced
from 1 January 2008. This initiative under the
Learn or Earn policy will provide each first-time apprentice
commencing from 1 January 2008 with $200 to assist them
to purchase appropriate and safe clothing, including
uniforms and protective equipment.
Apprentices and trainee apprentices will be informed
of the allowance in their approval letter and will receive
a cheque for $200 when their apprenticeship attains “registered” status
or three months after their commencement date for trainee
apprentices. First-time apprentices and trainee apprentices
will only be entitled to this payment once even if they
cancel their apprenticeship and recommence with another
employer or commence a different apprenticeship. Apprentices
who withdraw from their apprenticeship and recommence
with another employer prior to receiving the allowance,
will receive the allowance when the subsequent apprenticeship
is “registered” or formally approved.
$100 rebate on Apprentice’s car registration
First and second year apprentices receive a $100 rebate
on their car registration. Apprentices should apply
through the RTA. The application form will be available
on the RTA web site at http://www.rta.nsw.gov.au/registration/otherinformation/apprentices/index.html.
To be eligible for the rebate, the vehicle must be:
- Registered in NSW.
- Registered in the name of an eligible apprentice,
or jointly with an eligible apprentice.
- Be registered for general private or general business
use.
- Have been registered in the name of an eligible apprentice,
or jointly with an eligible apprentice, at the time
the registration fee and motor vehicle tax were last
paid.
Travel concessions First, second and third year apprentices and new
entrant trainees receive concession travel passes
on NSW buses, ferries and trains. Some private operators
also provide similar concessions. Forms are initially
sent apprentices and new entrant trainees with their
approval letters. Forms for the renewal of the concession
card are sent to apprentices and new entrant trainees
via their employer. A new form is being issued from
January 2008 that requires photo ID. http://apprenticeship.det.nsw.edu.au/docs/VT77form.pdf
Travel and Accommodation Assistance
Apprentices and new entrant trainees may be eligible
for travel and accommodation assistance if they need
to travel more than 120kms round trip to attend day
or block release with their registered training organisation.
Assistance for accommodation is $28 per day and the
rate for travel expenses is 12 cents per kilometre.
This applies to both public and private transport.
Forms are available on our website at http://apprenticeship.det.nsw.edu.au/docs/vtasform.pdf
Exemption from worker compensation premiums
Employers receive exemptions from workers compensation
premiums for their apprentices.
To be eligible for the apprentice premium
exemption you must have a valid workers compensation
policy and have entered into a NSW Department of Education
and Training (NSW DET) approved ‘Training Contract’ with
the apprentice in a designated trade vocation.
From 31 December 2006, when you renew
your workers compensation policy your Scheme Agent will
require you to complete the wage declaration forms as
usual and provide details about the apprentices you employ
for the purpose of obtaining the apprentice premium
exemption. Your Scheme Agent will automatically
calculate your premium exemption when calculating
your premium.
For policies commenced or renewed
between 31 December 2006 and 30 December 2007, the apprentice
premium exemption will be deducted from your final premium.
The final premium (called the hindsight premium)
is calculated by your Scheme Agent at the end of
the policy period using the actual amount of wages
paid during the policy period. Your Scheme Agent
will rebate any credit owing to you as a result of
this adjustment.
For policies commenced or renewed on or
after 31 December 2007, the apprentice premium exemption
will be applied to your premium at the start of the policy
period. This means that the premium exemption will
reduce your initial invoiced premium. The exemption
will be applied again when your final premium is
calculated at the end of the policy period. See
the WorkCover website for more information http://www.workcover.nsw.gov.au/FAQs/default.htm
Payroll tax exemption
Employers currently receive payroll tax exemption
for apprentices and new entrant trainees.
- All wages paid to an apprentice or new entrant trainee
who has entered into a training contract (within the
meaning of the Apprenticeship and Traineeship Act 2001)
are currently fully exempt. The exemption does not
apply in respect of trainees who are registered as
existing worker trainees under that Act. Existing worker
trainees are defined as any person who was employed
full time for 3 months or more, or part time for 12
months or more before they became a trainee.
- Superannuation
paid on behalf of apprentices and exempt trainees within
the meaning of the Apprenticeship and Traineeship Act
2001 is also fully exempt.
Employers should
regularly check for changes in payroll tax requirements
at http://www.osr.nsw.gov.au
Rebate on vehicle registration for small
business owners
For inquiries about NSW Government incentives
contact your nearest State Training Centre on 132811
The Australian Government offers a range
of incentives and subsidies for employers, apprentices
and trainees. A comprehensive list can be obtained
from www.australianapprenticeships.gov.au or
contact your Australian Apprenticeships Centre.
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