Draft Training Guarantee Determination

TGD 94/D2

Training guarantee: can an employer claim an employee's salary or wages for the time the employee is instructing a student or teacher on a period of:

•

work experience;

•

closely supervised practice; or

•

generally supervised practice under section 27A of the Training Guarantee (Administration) Act 1990 as eligible training expenditure?

under section 27A of the Training Guarantee (Administration) Act 1990 as eligible training expenditure?

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FOI status:

draft only - for comment

1. Yes. An employer can claim an employee's salary or wages for the time the employee is actually instructing or closely supervising the student or teacher as eligible training expenditure.

Example

XYZ Pty Ltd decides to take on Sarah, an 18 year old, full time student from the local TAFE college for 5 weeks' work experience. Mary, the receptionist, spends two hours showing Sarah how to operate the switchboard. She then sits with Sarah for half an hour while Sarah answers calls. For the rest of the day she leaves Sarah on her own, carries out her normal duties and answers Sarah's questions as they arise.

XYZ Pty Ltd can claim as eligible training expenditure:

two hours of one-on-one instruction; and

half an hour of closely supervised practice.

XYZ Pty Ltd cannot claim Mary's salary for the time she is doing her own job and occasionally answering a question from Sarah. Mary's salary during this time is not solely or principally in respect of the training of Sarah, but rather it is in respect of the performance of her normal duties.

Commissioner of Taxation
27/1/94

References

BO ALB/TG/TGR9

Related Rulings/Determinations:

TGD 94/D5

Subject References:
eligible training expenditure;
work experience

Legislative References:
TGAA 27A