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

• The NSW government provides small business owners with a rebate on the cost of registration of a vehicle for each apprentice employed. The RTA provides information at http://www.rta.nsw.gov.au/registration/apprentice_rebate.html

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.