Training Guarantee Determination

TGD 93/12

Training guarantee: does salary or wages paid to relief staff (engaged to replace employees who are attending an eligible training program) count as eligible training expenditure?

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FOI status:

1. No. Only the expenditure that is directly attributable to eligible training programs can be counted towards an employer's eligible training expenditure.

2. Directly attributable means that the expenditure that is incurred is directly related, or referable, to:

a.

an eligible training program; or

b.

activities which are integral to, and are undertaken in direct support of, eligible training programs.

3. Examples of the kind of expenditures that an employer may incur as a direct result of eligible training programs are contained in section 26 of the Training Guarantee (Administration) Act 1990(the TGAA). Salary or wage expenditure is limited to the amount paid to an employee for the period during which that employee was solely or principally engaged in participating in an eligible training program (paragraph 26(1)(a) of the TGAA).

4. Salary or wages paid to relief staff is expenditure directly attributable to the performance of work duties, not to an eligible training program.

Commissioner of Taxation
1/7/93

References

ATO references:
NO ALB/TG/TGR 4

Subject References:
directly attributable;
eligible training expenditure;
salary or wages

Legislative References:
TGAA 25,
26,
26(1)(a)