Contract for Training commences on or before 9 November 2020

Wages paid to apprentices and trainees who commence a relevant contract of training on or before 9 November 2020 are taxable and must be included in your taxable wages component.

Contract for Training commences between 10 November 2020 and 30 June 2021

Wages paid to apprentices and trainees who commence a relevant contract of training between 10 November 2020 and 30 June 2021 (inclusive), will receive relief equivalent to a 12 month payroll tax exemption.

What wages are eligible?

Wages paid to the apprentice or trainee during their first 12 months of employment.

Which apprentices/trainees are eligible?

The apprentice/trainee must commence a relevant contract of training between 10 November 2020 and 30 June 2021 (inclusive).

If the apprentice/trainee was employed on or before 9 November 2020, their wages are not eligible for the exemption.

How do I apply for the exemption?

There is no application process.

You will be able to specify the wages paid to eligible apprentice/trainees in RevenueSA Online, details on how will be available soon.

My apprentice/trainee commenced before 10 November 2020 – are they eligible?

No, the apprentice/trainee must have commence a relevant contract of training between 10 November 2020 and 30 June 2021 (inclusive).

What information do I need to provide?

You do not need to provide any information, however you should retain evidence (for example the contract for training) that supports the validity of the exempt wages for a minimum of 5 years.

Evidence will be required should you be subject to a payroll tax audit in the future.

Contract for Training commences on or after 1 July 2021

Wages paid to apprentices and trainees who commence a relevant contract of training on or after 1 July 2021 are taxable and must be included in your taxable wages component.