Training Guarantee Determination

TGD 93/11

Training guarantee: if an employer has not spent the required amount on training by the end of the year, can an extension of time beyond 30 June, or any other relief, be granted?

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FOI status:

1. No. Section 24 of the Training Guarantee (Administration) Act 1990 (the TGAA) provides that the meaning of net eligible training expenditure of an employer in a year is the amount calculated in relation to the employer and the year. There are no provisions in the TGAA for extensions of time to meet the minimum expenditure requirements, or for other forms of relief.

2. The word 'year' is defined in the TGAA to mean 'financial year' (1 July to 30 June).

Example:

ABC Hotel Pty Ltd had an annual national payroll of $250,000 for the financial year ended 30 June 1992 and thus was required to incur expenditure of $2,500 (ie : 1 % of $250,000) on eligible training activities.

On the 15 July 1992 ABC Hotel realised that they had only spent $2,000 and they then donated $500 to the Hotel Industry Association to be used on eligible training programs.

This donation was incurred in the 1992/93 financial year, and counts towards that year's minimum training requirement.

ABC Hotel Pty Ltd had a $500 shortfall for the 1991/92 financial year, which should have been paid to the Australian Taxation Office by 30 September 1992, or a later date if allowed by the Commissioner (section 40 of the TGAA).

Commissioner of Taxation
17/6/93

References

ATO references:
NO ALB/TG/TGR 4

Subject References:
eligible training expenditure;
extension of time;
incurred;
minimum training requirement

Legislative References:
TGAA 4,
24,
25,
40