Draft Training Guarantee Determination

TGD 93/D8

Training guarantee is an employer obliged to provide a structured training program for apprentices involved in on-the-job training for the activity to qualify as eligible training expenditure?

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FOI status:

1. No. Employers do not have to prepare a structured training program for apprentices involved in on-the-job training.

2. An apprenticeship is a fixed term employment contract which generally includes three elements :

a.

Off-the-job training (attendance at TAFE);

b.

On-the-job training (comprising periods of instruction and closely supervised practice); and

c.

Periods of generally supervised practice.

3. The apprenticeship agreement satisfies the structuring requirements for the training elements. Therefore, no further structuring is required in respect of on-the-job or off-the-job training activities.

4. Recording of periods of instruction or closely supervised practice on job cards or in diarised form satisfies all record keeping requirements for on-the-job training.

5. However, it should be noted that paragraph 27(4)(c) of the Training Guarantee (Administration) Act 1990 specifically disqualifies periods of generally supervised practice as training.

Commissioner of Taxation
2/12/93

References

ATO references:
NO ALB/TG/TGR4

Subject References:
Eligible training expenditure,
on-the-job training,
structured training program,
training guarantee

Legislative References:
TGAA 27