Draft Training Guarantee Determination

TGD 94/D5

Training guarantee: can an employer claim the salary or wages it pays to 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?

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FOI status:

draft only - for comment

1. Yes. An employer can claim the salary or wages it pays to the student or teacher as eligible training expenditure.

2. To be an eligible training program the work experience, closely supervised practice or generally supervised practice must meet certain criteria specified in section 27A of the Training Guarantee (Administration) Act 1990. Provided these criteria are met, the payment of salary or wages to the student or teacher will be directly attributable to an eligible training program and therefore will be eligible 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. It pays Sarah $20 per day for the five weeks. The total $500 will be eligible training expenditure for XYZ Pty Ltd.

Commissioner of Taxation
27/1/94

References

BO ALB/TG/TGR9

Subject References:
eligible training expenditure;
work experience

Legislative References:
TGAA 27(A)