Apprentice & Trainee Payroll Tax News

Apr 12, in Employer Help, Hints & Tips

It seems there is a plan in the works to cut back the payroll tax for apprentices and trainees in South Australia. This could be beneficial for the future of employers. South Australian Labor Premier, Mike Rann, recently announced a payroll tax reduction plan during a tour of Regency Park TAFE in northern suburbs of Adelaide. A re-elected Labor government would eliminate payroll tax on wages for apprentices and trainees in the future.

The move would be likely to cut the cost back for employing a trainee or apprentice by more than $1,400 per year. Labor has costed the plan $104 million over four years.

The Liberals say that their payroll tax policy will achieve a similar outcome. However, Premier Mike Rann says the opposition policy is more complicated. Liberal treasury spokesman Steven Griffiths says Labor is playing follow the leader. “Isobel Redmond announced on the second of March that we were making significant changes to payroll tax, Kevin Foley on the fifth of March said they would not be doing it, clearly the Labor party is out of touch,” he said.

Mike Rann said, “Labor has announced a commitment to deliver 100,000 new training places over the next six years… We think this will boost the number of apprenticeships and trainees by about 10 per cent”.

Mr Rann took journalists on a bus tour with him before flying to Port Augusta to continue campaigning”. We’ve already reduced payroll tax to be equal lowest rate in the country so together with this latest complete abolition of payroll tax, which we’ll legislate for, for trainees and apprentices, it means that there’ll be about $200 million in total payroll tax relief for businesses in South Australia,” he stated.

While these plans focus on South Australian businesses it may simply be a matter of time before the rest of the country follows suit.

Image by brianjmatis