Training Guarantee Determination

TGD 93/4

Training guarantee: if employees on different rates of pay participate in an eligible training program, can an employer use an average wage rate to calculate salary or wage expenditure irrespective of which particular employees are involved in the program?

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FOI status:

1. Yes. An employer can use an average wage rate to calculate eligible salary or wage expenditure for training guarantee purposes. The averaging method must, of course, be soundly based and truly representative to be valid; eg: a weighted average reflecting the different wage rates of all those involved or expected to be involved in training activities.

2. One of the objects of the Training Guarantee (Administration) Act 1990 is that the scheme be implemented in a manner that minimises the administrative burden on employers [Section 3].

Example 1.:

Red Pty Ltd , a manufacturing business, undertakes an occupational health and safety program for all its factory employees. The average annual salary of the factory employees is $20,000, from which an average hourly rate wage can be determined. In calculating its eligible salary or wage expenditure for training guarantee purposes Red Pty Ltd is able to multiply the average rate by the number of employees who attend.

Example 2.

White Ltd is a large manufacturing business. For training guarantee record keeping purposes an average hourly salary and wage rate has been carefully determined for each of four levels. The appropriate hourly rate(s) is then used in calculating salary or wage expenditure .

Classification	Annual salary	Average hourly rate struck
Factory/non-professional	Up to $30,000	$W
Middle Management	$30,000 to $50,000	$X
Executive	$50,000 to $80,000	$Y
Senior Management Above	$80,000	$Z

Commissioner of Taxation
25/2/93

References

ATO references:
NO ALB/TG/TGR 2

Subject References:
eligible training expenditure,
minimum training requirement,
record keeping

Legislative References:
TGAA 26;
TGAA 101