Payroll Tax Rebate (Apprentices, Trainees and Youth Employees) Act 2017
In ForceTAS
Jurisdiction
Tasmania
Act Number
23 of 2017
Collection
act
Plain English Summary
6/10 complexity
Creates a Crown-funded rebate that refunds employers the payroll tax paid for eligible apprentices, trainees and certain new youth employees during specified "eligible periods" (s4, s5). Employers pay the tax up front; the Commissioner sets rebate conditions, decides claims and pays or applies rebates against other tax liabilities (s4(2), s7, s9, s10). Claims must meet payment, timing and information rules and are subject to investigation, variation, recovery and penalties (s8, s11, s19). Regulations and a COVID-era ministerial order power can alter eligibility windows (s27, s26A).
This Act establishes a state rebate scheme that reimburses employers for payroll tax paid in respect of particular categories of employees: apprentices, trainees and certain youth new-hire employees, subject to eligibility windows, time limits and conditions set by the Commissioner. Mechanically, the Crown must "establish a scheme for the payment of rebates equivalent to the payroll tax paid by an employer for an eligible employee" (s 4(1)). The Commissioner administers the scheme and determines conditions for payment (s 4(2)), including the form, supporting information, statutory declarations and the timing and method of payment (ss 8(2), 8(3), 9(2)-(3)). Amounts are drawn from the Public Account once the Commissioner is satisfied a rebate is payable (s 12).
Eligibility is defined by reference to employment categories and discrete "eligible period" windows (ss 3, 5). A person is an "eligible employee" if they are employed as a trainee or apprentice and their training contract takes effect within the eligible period, or if they are a youth new employee (aged 15 to under 25) who commences non‑casual employment within the eligible period and meets the new‑employee test (s 5(1)-(3)). The Act supplies special rules treating service providers as employees of the employment agent for rebate purposes (s 5(4)), excludes people whose employment arises from takeover/transfer where the employer merely assumed existing entitlements (s 5(5)), and allows a "subsequent employer" to qualify where the person was an eligible employee of the previous employer immediately before transfer (s 5(6)).
Rebate duration and quantum are time-limited and defined. A trainee or apprentice rebate is payable for two years from the date the training contract takes effect (s 6(1)); a rebate for a youth employee is payable for one year from the date of commencement (s 6(2)-(3)). The rebate amount for a claim period is, unless the Commissioner otherwise determines, the lesser of (a) the payroll tax saved by excluding eligible employee wages from taxable wages for that claim period and (b) payroll tax actually paid for that claim period (s 7(2)). "Taxable wages" and other payroll tax terms are those used in the Payroll Tax Act 2008 (s 7(1)).
Procedurally, an employer claimant must have paid payroll tax in full for the claim period and have satisfied the Commissioner as to compliance and completion of any investigations (s 8(1)). Claims must be in a Commissioner‑approved form, include requested information, and be lodged within statutory time limits,normally within nine months after the financial year that includes the claim period, but with an alternate two‑month window if an investigation delayed lodgment (s 8(2)(c)). The Commissioner may vary or reverse decisions if later satisfied they were incorrect or based on false or incomplete information (s 11). The Act gives the Commissioner power to offset approved rebates against other tax liabilities of the employer (s 10).
Enforcement and recovery provisions enable the Commissioner to require repayment, impose penalties up to the amount of the rebate, recover amounts as a debt (with interest under the Taxation Administration Act 1997), and serve notices on third parties who hold funds for the claimant (ss 19-21). False or misleading information attracts separate criminal/penalty unit sanctions (s 23). Parts 8 and 9 of the Taxation Administration Act 1997 apply to this Act with specified modifications (s 22), bringing into play TAA audit, information‑gathering, and compliance machinery with adjustments to terminology.
Statutory discretion is concentrated in the Commissioner and in delegated regulation power. The Commissioner decides conditions, forms, further information, payment methods, and may apply rebates against other Crown tax debts (ss 4(2), 8(2), 8(3), 9(2)-(3), 10). The Governor may make regulations authorising matters to be determined by the Commissioner and adopting external documents by reference (s 27). The Minister has a specific contingency power to amend eligible period end dates and extend rebate durations in response to COVID‑19 impacts (s 26A).
The scheme is temporary and repealed on 30 June 2029 (s 29). The Act heavily cross‑references the Payroll Tax Act 2008, the Taxation Administration Act 1997, the Training and Workforce Development Act 2013 and other statutes; those instruments supply core definitions, administrative powers and interest rules (see s 3 and s 22).
Main concepts
The Act organises three principal dimensions: eligibility (who and when), quantum and timing of rebates (what and how long), and administration/enforcement (who decides and how to challenge).
Eligibility
Eligible employee: apprentices and trainees whose training contract takes effect within the "eligible period" (s 5(1)(a)-(2)), and youth employees (15-24 years old) who are new, non‑casual employees commencing within the eligible period (s 5(1)(b)). The Act defines "youth employee" numerically in s 3.
Eligible period: the Act defines different windows depending on the employee class and as modified by amendment history; broadly the scheme covers employment from 1 July 2017 through various cutoffs (s 3). For apprentices an additional discrete window to 30 June 2026 is expressly added (s 3(c)).
New employee test for youth hires: a youth employee is "new" for a particular employer if not employed by that employer on specified reference dates (25 May 2017 for the earlier window and 31 March 2020 for later windows) and has not previously been employed within the relevant eligible period (s 5(3)).
Amount and temporal limits
Quantum: the rebate is effectively the payroll tax attributable to eligible employee wages for the claim period, but constrained so it cannot exceed payroll tax actually paid for that period (s 7(2)(a)-(b)). Definitions reference the Payroll Tax Act 2008 for "taxable wages" and payroll tax constructs (s 7(1)).
Durations: trainee/apprentice rebate duration is capped at two years from training contract commencement (s 6(1)). Youth employee rebates are capped at one year from the employee's start date (s 6(2)-(3)). The Commissioner may, under s 26A, permit extensions in response to COVID‑19.
Administration and powers
Commissioner control: the Commissioner of State Revenue (appointed under the Taxation Administration Act 1997) administers, decides conditions, approves forms, requests information, determines claims, and may impose conditions and methods for payment (ss 3, 4(2), 8, 9).
Delegation: the Commissioner may delegate any function except the delegation power itself; Deputy Commissioners have equivalent functions subject to the Commissioner's control (s 17).
Audits and information powers: the Act brings Parts 8 and 9 of the Taxation Administration Act 1997 into force for this scheme with adaptations (s 22). That imports inspection, notice, record‑keeping and compliance powers of the TAA, albeit with wording alterations to reference "claim" and "claimant".
Who it affects
Primary financial parties
Employers registered under the Payroll Tax Act 2008 are the intended claimants; an "employer" is defined by reference to registration under the Payroll Tax Act (s 3). Employers who pay payroll tax on wages of eligible employees may claim rebates (s 4(1), s 8(1)(a)).
Employment agents and service providers: where an eligible person is a "service provider" within the meaning of s 37 of the Payroll Tax Act 2008, the Act treats the employment agent who procured the services as the employer for rebate purposes (s 5(4)(a)-(b)). That shifts eligibility and claiming responsibility onto intermediaries who commonly handle payroll tax obligations.
Affected workers (direct)
Apprentices and trainees: persons with training contracts that take effect under the Training and Workforce Development Act 2013 within the eligible period are eligible employees for employer rebate purposes (s 5(1)(a), s 5(2)). The Act does not change workers' pay or leave rights; it affects the employer's payroll tax position.
Youth employees: persons aged 15 to under 25 who commence non‑casual employment as new employees within certain eligible windows are included (s 3 definition of "youth employee"; s 5(1)(b)). The Act excludes trainees and apprentices from the "youth employee" category (s 3 definition excludes "employed or engaged other than as a trainee or apprentice").
Secondary and contingent parties
Third parties holding money for or due to claimants: the Commissioner may require these third parties to pay amounts in lieu of the claimant under s 21. That creates potential direct liability exposure for entities that hold funds payable to claimants, including banks or agents.
The Crown: the Public Account funds rebate payments (s 12). Where employers have outstanding tax liabilities, the Crown may retain rebates under s 10.
State administrative organs: the Department of Treasury and Finance administers the Act until an Administrative Arrangements order reallocates administration (s 28). The Commissioner and any authorised officers appointed under s 18 exercise investigatory and enforcement functions; s 18 also ties authorised officer status to the Taxation Administration Act 1997's definitions.
Those who must take action
Registered employers who intend to claim must have paid payroll tax in full for the claim period, comply with the Payroll Tax Act and scheme requirements, and ensure no incomplete investigations exist (s 8(1)(a)-(c)).
Key duties and rights
Duties placed on claimants and third parties
Pay payroll tax: to make a claim the employer must have paid their payroll tax liability in full up to and including the claim period (s 8(1)(a)). This is a precondition to claiming.
Lodge claims correctly and timely: claims must be in a Commissioner‑approved form, include required information and be lodged within the statutory window,generally within nine months after the financial year that includes the claim period, or within two months after completion of an investigation that delayed lodgment (s 8(2)(a)-(c)). A claim lodged outside the relevant period is void (s 8(4)).
Provide additional evidence and statutory declarations: the Commissioner may require further information in the form of a statutory declaration to support a claim (s 8(3)).
Cooperate with investigations: claimants must comply to the Commissioner's satisfaction with applicable scheme and Payroll Tax Act requirements and any investigation in respect of the employer (s 8(1)(b)). Incomplete investigations preclude claiming under s 8(1)(c).
Rights of claimants
Right to a Commissioner's determination and to conditions: on receipt of a claim, the Commissioner is required to determine whether a rebate is payable (s 9(1)). If so, the Commissioner may authorise payment subject to conditions the Commissioner thinks appropriate (s 9(2)).
Right to statutory administrative review and judicial appeal: claimants may object in writing within 60 days of receiving written notice of an adverse decision, and the Commissioner must consider and give reasons for any determination (s 13(2); s 14(1)-(2)). Following determination, claimants may apply to the Magistrates Court (Administrative Appeals Division) for review or appeal to the Supreme Court, subject to time limits and notice requirements (s 15).
Right to reasons and independence in objection handling: the Commissioner must not have an objection determined by the same person who made the original decision, nor by a subordinate of a delegate who made the decision (s 14(3)-(4)).
Commissioner powers, obligations and discretions
Conditions and payment method: the Commissioner may set conditions, require further information, determine forms, and pay rebates by any method the Commissioner considers appropriate (ss 4(2), 8(2), 8(3), 9(2)-(3)).
Offset and notice: the Commissioner may apply an approved rebate against other tax liabilities of the employer and must notify the employer in writing if that is done (s 10(1)-(2)).
Penalties and enforcement
Statutory penalties and criminal risk
False or misleading information: s 23 sets maximum penalties for making false or misleading statements, omissions or providing false documents. For deliberate or "dishonest" conduct (s 23(1)): a body corporate can be fined up to 750 penalty units and an individual up to 150 penalty units. For intentional or negligent false/misleading conduct (s 23(2)): a body corporate faces up to 500 penalty units and an individual up to 100 penalty units. The Act treats dishonest conduct more severely than negligent/intentional conduct.
Non‑compliance with third party notices: failure to comply with a Commissioner requirement under s 21 carries a penalty; a body corporate faces up to 500 penalty units, an individual up to 100 penalty units (s 21(5)).
Repayment and administrative penalties
Repayment notices: under s 19(1) the Commissioner may require repayment of rebates paid in error, where the decision was varied/reversed, or where the Commissioner is satisfied the claimant was not eligible.
Penalties tied to repayment: the Commissioner may impose a penalty not exceeding the amount of the rebate to be repaid where the claimant contravened s 23(1) or s 23(2) and as a result a rebate or part of a rebate was paid or applied against Crown tax liabilities (s 19(2)(a)-(b)). The Commissioner may also impose a penalty not exceeding the amount to be repaid where a claimant fails to make repayment or fails to meet the conditions of the rebate (s 19(3)).
Recovery mechanisms
Debt recovery: amounts required to be repaid, penalties, and reasonable costs of recovery can be recovered by the Commissioner as a debt due to the Crown (s 20(3)(a)-(b)). The Act makes such liabilities joint and several where the requirement attaches to two or more persons (s 20(2)).
Interest: if the person fails to pay by the notice date, the Commissioner may require interest on the unpaid amount, calculated daily from the due date at the rate specified in s 35 of the Taxation Administration Act 1997 (s 20(4)-(5)). There is a de minimis threshold: no interest if the calculated interest would be less than $20 (s 20(6)).
Instalments, write‑off and remission: the Commissioner may agree instalment arrangements and may write off whole or part of liabilities if recovery is impracticable or unwarranted (s 20(7)-(8)), and may remit interest in circumstances the Commissioner considers appropriate (s 20(9)).
How it interacts with other laws
Cross‑reference architecture
Payroll Tax Act 2008: the Act repeatedly depends on definitions and registration machinery in the Payroll Tax Act. "Employer", "employment agent", "payroll tax", and "taxable wages" are expressly aligned with that Act (s 3; s 7(1)). The calculation of the rebate directly references payroll tax constructs from the Payroll Tax Act (s 7).
Taxation Administration Act 1997 (TAA): Parts 8 and 9 of the TAA are applied to this Act with specified modifications (s 22). That imports TAA provisions on record keeping, inspections, offence provisions and authorised officer powers, but replaces TAA terminology such as "taxpayer" with "claimant" and adapts references to "taxation law" to include this Act (s 22(1)(a)-(f), (j)-(l)). The TAA's interest rate and other administrative rules are also invoked (s 20(5) referencing s 35 of the TAA).
Training and Workforce Development Act 2013: the status of trainees and apprentices is determined under that Act; in particular a person is a trainee or apprentice for rebate purposes if their training contract takes effect under that Act within the eligible period (s 5(2), s 3 definitions).
Industrial Relations Act 1984: the Act borrows the Industrial Relations Act's definition of "casual employment" for the youth new‑employee test,the youth employee must be employed "other than as a trainee or apprentice" and in employment that is not casual within the meaning of the Industrial Relations Act 1984 (s 5(1)(b)(i)).
Acts Interpretation Act 1931 and Subordinate Legislation Act 1992: s 26A(3) refers to Acts Interpretation Act provisions applying to Ministerial orders under s 26A, and s 26A(4)(b) states such orders are not instruments of a legislative character for the purposes of the Subordinate Legislation Act 1992; s 27(4) notes regulations can adopt documents by reference.
Rules Publication Act 1953: Ministerial orders under s 26A are statutory rules for the purposes of that Act (s 26A(4)(a)).
Operational implications of cross‑application
TAA enforcement and evidence powers extend to the rebate scheme but with textual changes. The Act instructs that references in the TAA (Parts 8 and 9) to "required record", "authorised officer", "taxation law", "tax officer" and "taxpayer" are to be read respectively as including records required for this Act, the authorised officer under this Act, this Act as a taxation law, an authorised officer under this Act, and a claimant (s 22(1)(a)-(f)). This deliberate alignment expedites use of existing audit powers against claimants but specifies certain omissions of TAA subsections (s 22(1)(h)-(i), (l)).
Amendment history
The Act text contains multiple inline amendment notations. The following lists the amendments explicitly cited in the source material, with the sections affected and the applied dates shown in the Act's annotations.
No. 5 of 2018
Amended s 3: annotation "[Section 3 Amended by No. 5 of 2018, s. 8, Applied:01 Jul 2018]" (affects definitions and perhaps the eligible period wording).
Amended s 7 subsection (1) and subsection (2) annotations appear with "[Section 7 Subsection (1) amended by No. 5 of 2018, s. 9, Applied:01 Jul 2018]" and "[Section 7 Subsection (2) amended by No. 5 of 2018, s. 9, Applied:01 Jul 2018]".
Amended s 27 subsection (4) inserted by No. 5 of 2018, s. 10, Applied:01 Jul 2018.
Amended s 29 by No. 5 of 2018, s. 11, Applied:01 Jul 2018.
No. 9 of 2020
Amended s 3: "[Section 3 Amended by No. 9 of 2020, s. 10, Applied:01 Apr 2020]" (appears in the eligible period definition for youth employees).
Amended s 5 subsections: "[Section 5 Subsection (3) amended by No. 9 of 2020, s. 11, Applied:01 Apr 2020]" (affects new employee test timings).
Amended s 6 subsection (2) substituted by No. 9 of 2020, s. 12, Applied:01 Apr 2020 (changes youth rebate duration rules).
Inserted s 26A by No. 9 of 2020, s. 13, Applied:01 Apr 2020 (Ministerial COVID powers).
No. 46 of 2020
Amended s 3 on the eligible period wording , "[Section 3 Amended by No. 46 of 2020, s. 4, Applied:01 Jan 2021]" , adjusting the start or end dates for various classes in the eligible period.
No. 8 of 2022
Amended s 3 on eligible period , "[Section 3 Amended by No. 8 of 2022, s. 14, Applied:05 Apr 2022]" , further adjustments to eligible period windows and likely tie‑in to s 6 and related definitions.
Amended s 3 referenced in other places to effect changes applied 05 Apr 2022.
No. 5 of 2024
Amended s 3 on eligible period , "[Section 3 Amended by No. 5 of 2024, s. 15, Applied:01 Jul 2024]" (affecting eligible period timelines).
Amended s 7(1) annotations, s 27(4) references and s 29 were also marked as amended by No. 5 of 2024 in the source.
No. 31 of 2025
Litigation history
The Act text supplied contains no references to case law, reported decisions, or judicial interpretations. There are no statutory citations to judicial decisions and no schedule of litigation history in the Act. The Act establishes internal objection and appeal routes (ss 13-16), but the source does not record any instances of those routes being used or any resulting judicial decisions.
What the source does provide about dispute resolution:
Administrative objection procedures are set out with time limits and onus rules (ss 13-14). The Act gives the Magistrates Court (Administrative Appeals Division) supervisory jurisdiction for review and the Supreme Court for appeal (s 15).
The Act makes clear that an objection, review or appeal does not operate as an automatic stay of the Commissioner's decision (s 16(1)), so any litigation or tribunal review would likely need stay orders or interlocutory relief if a claimant wishes to suspend enforcement or repayment pending determination.
The Commissioner retains the power to vary or reverse decisions under s 11 independently of objections, potentially narrowing the discrete legal issues that might be litigated.
Absent judicial material in the Act, practitioners must rely on the statutory text and the administrative framework. If precedent exists, it is not recorded in the provided Act text; for any litigation posture or case law research, review of court databases, tribunal records and consolidated legislative notes outside the Act will be necessary.
Gotchas
Timing and deadlines
Claim deadlines are firm and potentially unintuitive: claims generally must be made within nine months after the financial year that includes the claim period, unless the Commissioner otherwise specifies; if an investigation commenced before expiry and is not completed, the claimant has two months from completion to lodge (s 8(2)(c)(i)-(ii)). A late claim is void (s 8(4)). Practitioners must track financial year windows and any active investigations carefully.
Rebate durations are capped and non‑renewable by default: trainees/apprentices are limited to two years starting from training contract effect date (s 6(1)); youth employees to one year from start date (s 6(2)-(3)). An extension may only occur by Ministerial order under s 26A in response to COVID‑19 and subject to specified procedural conditions.
Commissioner discretion and conditionality
Broad Commissioner discretion: the Commissioner determines conditions, payment methods, and may authorise payments subject to terms (ss 4(2), 9(2)-(3)). This discretion means the Commissioner can impose documentation, verification and reporting requirements beyond the base statutory text,claimants should expect administrative conditions.
Variation/reversal power: the Commissioner can vary or reverse decisions independently of the objection process if satisfied there was an error or false/misleading information (s 11). This creates a risk that a claimant with an initially approved rebate may later receive a repayment notice even without a separate objection having been lodged by another party.
Interplay with payroll tax definitions and third‑party roles
Reliance on external definitions: key terms such as "taxable wages", "payroll tax", "employer" and "employment agent" are defined in the Payroll Tax Act 2008 and the Training and Workforce Development Act 2013 (s 3, s 7(1), s 5(2)). Misreading those external definitions can lead to erroneous claims.
Service provider treatment: if an eligible worker is a "service provider" under s 37 of the Payroll Tax Act 2008, the employment agent is treated as the employer for rebate purposes (s 5(4)). Entities using contractors or labour hire arrangements must confirm whether the employment agent is the claimant or whether payroll tax was actually paid by a different party.
Offset and netting risk
Commissioner may apply rebate to other tax liabilities: s 10 permits the Commissioner to apply a rebate against tax liabilities owed to the Crown. A claimant expecting cash flow benefits from a rebate may instead find the amount netted against outstanding liabilities; the Commissioner must notify the employer (s 10(2)) but this can defeat the expected purpose of a claimed rebate.
How to comply
Step‑by‑step compliance checklist (practical)
Confirm employer registration and payroll tax payment status
Ensure the employer is registered under the Payroll Tax Act 2008 as required (s 3 definition of "employer") and that payroll tax liabilities up to and including the claim period have been paid in full (s 8(1)(a)). Claims will be rejected if payroll tax is unpaid for the period.
Establish employee eligibility
For apprentices/trainees: confirm the training contract took effect under the Training and Workforce Development Act 2013 within the applicable eligible period (s 5(1)(a)-(2)). Record and retain the training contract commencement date and supporting documentation.
For youth employees: confirm the worker is aged 15-24 at engagement and that the role is not casual employment under the Industrial Relations Act 1984 (s 3 definition; s 5(1)(b)(i)). Demonstrate "new employee" status using the statutory reference dates: not employed by the employer on 25 May 2017 (for the earlier eligible period) or 31 March 2020 (for the later eligible period) and not previously employed by that employer within the relevant eligible period (s 5(3)).
Document pay and taxable wages precisely
Maintain payroll records sufficient to show "eligible employee wages" and "taxable wages" as defined in the Payroll Tax Act 2008 (s 7(1)). The rebate calculation compares payroll tax actually paid with the payroll tax that would have been payable absent eligible employee wages (s 7(2)). Retain payslips, payroll runs, PAYG summaries and bookkeeping exports.
Keep contemporaneous evidence of recruitment and transfers
For hires following mergers, takeovers or intra‑group transfers, document whether employment is new or the result of an assumption of entitlements (s 5(5)). If a transfer occurs, preserve evidence showing the employee was an eligible employee for the previous employer immediately prior to transfer if relying on s 5(6).
Prepare to complete prescribed claim form and respond to requests
Lodge claims in the form approved by the Commissioner and include any additional information requested (s 8(2)(a)-(b)). Expect potential requests for statutory declarations (s 8(3)). Monitor the Commissioner’s published forms and guidance.
Current sections
Direct links to the current provisions in Payroll Tax Rebate (Apprentices, Trainees and Youth Employees) Act 2017.
(c) [Section 3 Amended by No. 31 of 2025, s. 8, Applied:30 Jun 2025] in relation to an apprentice who is an eligible employee, and in addition to any other period specified in this definition, the period commencing on 1 July 2025 and ending on 30 June 2026 inclusive;
youth employee means a person who has attained the age of 15 years, but has not attained the age of 25 years, who is employed or engaged other than as a trainee or apprentice.
Part 2
Rebate Scheme
Part 2 Rebate Scheme
4
Establishment of rebate scheme
4 Establishment of rebate scheme
(1) The Crown is to establish a scheme for the payment of rebates equivalent to the payroll tax paid by an employer for an eligible employee as specified in this Act.
(2) Rebates are to be paid to employers under such conditions as are determined by the Commissioner.
5
Eligible employee for rebate
5 Eligible employee for rebate
(1) For the purposes of this Act, a person is an eligible employee if –
(a) the person is employed or engaged as a trainee, or apprentice, by an employer within the eligible period; or
(b) the person –
(i) is employed or engaged within the eligible period by an employer, as a new employee of that employer, in employment that is not casual employment within the meaning of the Industrial Relations Act 1984 ; and
(ii) is a youth employee at the time of being so employed or engaged.
(2) For the purposes of subsection (1)(a) , a person is employed or engaged as a trainee, or apprentice, within the eligible period if the person's training contract takes effect under the Training and Workforce Development Act 2013 within the eligible period.
(3) For the purposes of subsection (1)(b) , a youth employee is a new employee of an employer, if the youth employee –
(4) For the purposes of this section, if a person employed or engaged as a trainee, or apprentice or youth employee, within the eligible period is a service provider within the meaning of section 37 of thePayroll Tax Act 2008 –
(a) the person is taken to be employed or engaged by the employment agent who procured the services of the service provider within the meaning of section 37 of thePayroll Tax Act 2008 ; and
(b) that employment agent is taken to be the employer of the person for the purposes of this Act.
(5) For the purposes of this section, a person is not employed or engaged as a trainee, apprentice or youth employee by an employer within the eligible period if –
(a) the person is employed or engaged by the employer within the eligible period as a result of the employer assuming the responsibility for any of the employee's entitlements, either directly or indirectly, as part of a business merger, takeover, acquisition or similar business dealing; or
(b) during the eligible period, the person is employed or engaged by the employer as a result of a transfer of the employee from another employer within the same group, within the meaning of section 67 of thePayroll Tax Act 2008 , as the employer.
(a) an employer (the subsequent employer) employs or engages a person within the eligible period in either circumstance specified in that subsection; and
(b) immediately before the subsequent employer employed or engaged the person, the person was an eligible employee for his or her previous employer –
that person is taken to be an eligible employee in respect of the subsequent employer as if the subsequent employer were the previous employer of the person.
(7) For the avoidance of doubt, the fact that –
(a) a person is employed or engaged on a part-time or full-time basis; or
(b) a rebate has been payable under this Act in respect of a trainee or apprentice; or
(c) a rebate has been payable under this Act in respect of a youth employee to a previous employer of the youth employee –
does not affect whether the person is an eligible employee for the purposes of this Act.
6
Duration of rebate
6 Duration of rebate
(1) A rebate under this Act is only payable in respect of a trainee or apprentice for a period of 2 years from the day that the training contract of the trainee or apprentice takes effect under the Training and Workforce Development Act 2013 .
(a) if the youth employee is an eligible employee under section 5(1)(b) by virtue of being employed or engaged within the period specified in paragraph (ab)(i) of the definition of eligible period in section 3 , for a period of one year from the date that the youth employee commenced the employment or engagement within that eligible period; or
(b) if the youth employee is an eligible employee under section 5(1)(b) by virtue of being employed or engaged within the period specified in paragraph (ab)(ii) of the definition of eligible period in section 3 , for a period of one year from the date that the youth employee commenced the employment or engagement within that eligible period.
(3) A rebate payable under this Act in respect of an eligible employee who is a youth employee is payable for the entire period of one year as calculated under subsection (2) for the eligible employee even if the eligible employee ceases to be a youth employee during that period.
(2) Unless otherwise determined by the Commissioner, a rebate of payroll tax payable under this Act, to an employer in respect of a claim period, is the lesser of the following:
(a) [Section 7 Subsection (2) amended by No. 5 of 2018, s. 9, Applied:01 Jul 2018] the amount of payroll tax paid by that employer for that claim period that would remain after deducting, from that amount of payroll tax paid, the amount of payroll tax that would have been payable by that employer for that claim period if the taxable wages paid by that employer for that claim period did not include the eligible employee wages payable for that claim period;
(b) the amount of payroll tax paid by that employer for that claim period.
8
Claim for rebate
8 Claim for rebate
(1) An employer may claim a rebate of payroll tax, paid in respect of a claim period, from the Commissioner if –
(a) the employer has paid in full the employer's payroll tax liability up to, and including, that claim period; and
(b) the employer has complied with, to the satisfaction of the Commissioner –
(ii) any investigation in respect of the employer; and
(c) there are no incomplete investigations in respect of the employer.
(2) A claim must –
(a) be made in a form approved by the Commissioner; and
(b) include any additional information requested by the Commissioner; and
(c) be made –
(i) within the 9-month period immediately after the financial year that includes the claim period, unless otherwise specified by the Commissioner; or
(ii) if, before the expiry of the period specified in subparagraph (i) , an investigation has been commenced in respect of the claimant that has not been completed before the expiry of that period, within the 2-month period immediately after the completion of the investigation.
(3) The Commissioner may require a claimant to provide further information, to support the claimant's claim, in the form of a statutory declaration.
(4) A claim made in respect of a claim period that is made outside the relevant period specified in subsection (2)(c) is void.
9
Determination of claim
9 Determination of claim
(1) On receipt of a claim in respect of an eligible employee for a claim period, the Commissioner is to determine whether a rebate is payable under the scheme in respect of that eligible employee in that claim period.
(2) If the Commissioner decides that a rebate is payable under the scheme, the Commissioner may authorise the payment of that rebate, subject to any terms or conditions the Commissioner thinks appropriate in the circumstances.
(3) A rebate payable under this Act is to be paid in any way the Commissioner considers appropriate in the circumstances.
10
Rebate may be used to offset other tax liabilities
10 Rebate may be used to offset other tax liabilities
(1) If –
(a) the Commissioner has decided that a rebate is payable to an employer under this Act; and
(b) the employer has a tax liability due and owing to the Crown –
the Commissioner may apply the rebate payable under this Act against the tax liability due and owing.
(2) If the Commissioner applies the rebate payable to an employer under this Act against a tax liability under this section, the Commissioner is to notify the employer in writing of that fact.
11
Amendment or reversal of claim
11 Amendment or reversal of claim
The Commissioner may vary or reverse a decision in respect of a claim if the Commissioner, after deciding the claim, is later satisfied, independently of an objection under this Act, that –
(a) the decision was incorrect; or
(b) the decision was made on the basis of, or having regard to, false or misleading information; or
(c) the claimant failed to provide information required, or requested by the Commissioner, as part of the claim; or
(d) the claimant failed to comply with any conditions imposed on the rebate under this Act.
12
Payments from Public Account
12 Payments from Public Account
If the Commissioner is satisfied that a rebate is payable in accordance with the provisions of this Act, the amount of the rebate is to be paid from the Public Account.
Part 3
Objections and Appeals
Part 3 Objections and Appeals
13
Objections
13 Objections
(1) A claimant (or former claimant) who is dissatisfied with a decision under this Act –
(a) made in respect of a claim; or
(b) to vary or reverse a prior decision under section 11 in respect of a claim; or
(c) to require repayment of the rebate, or to impose a penalty, under section 19 in respect of a claim –
may lodge a written notice of objection with the Commissioner.
(c) be lodged with the Commissioner within 60 days after the day on which the claimant (or former claimant) received written notice of the decision to which the objection relates.
(3) An objection is taken to have been lodged when it is received by the Commissioner.
(4) If the Commissioner is satisfied that a claimant (or former claimant) has a reasonable excuse for failing to lodge an objection within the period specified in subsection (2)(c) , the Commissioner may extend the time for lodging the objection.
(5) For the avoidance of doubt, a person making an objection under this section has the onus of proving his or her case and the grounds for the objection.
14
Determination of objection
14 Determination of objection
(1) After considering the grounds of an objection, and any evidence the Commissioner considers relevant to the objection, the Commissioner may determine the objection by confirming, varying or reversing the decision to which the objection relates.
(2) After making a determination under subsection (1) , the Commissioner must notify the claimant (or former claimant) who made the objection, in writing, of –
(a) the determination made under that subsection in respect of the objection; and
(b) the reasons for the determination.
(3) If the Commissioner delegates his or her functions or powers under this Part, the Commissioner is to ensure that a determination of an objection under subsection (1) is not made by –
(a) the person who made the decision to which the objection relates; or
(b) if the person who made the decision to which the objection relates was a delegate of the Commissioner, a subordinate of that person.
(4) The Commissioner is to delegate his or her functions and powers under this Part in respect of the determination of an objection under subsection (1) if the Commissioner made the decision to which the objection relates.
15
Right of review or appeal
15 Right of review or appeal
(1) A claimant (or former claimant) may apply to the Magistrates Court (Administrative Appeals Division) for a review of, or may appeal to the Supreme Court against –
(a) the determination of the claimant's objection under this Part; or
(b) the failure to determine the claimant's objection under this Part.
(2) An application for review or an appeal –
(a) is to be made within 60 days after the date of service on the claimant (or former claimant) of the notice under section 14(2) of the determination of the objection to which the review or appeal relates; and
(b) is not to be made before 90 days after the objection to which the review or appeal relates is lodged, if the review or appeal relates to the failure to determine the objection under this Part.
(3) A claimant (or former claimant) must give written notice to the Commissioner of the claimant's intention to apply for a review, or an appeal, under subsection (1)(b) at least 14 days before applying for the review or appeal.
16
Objection, review or appeal not to stay proceedings
16 Objection, review or appeal not to stay proceedings
(1) An objection, review or appeal under this Part does not stay the operation of the decision to which the objection, review or appeal relates.
(2) If an objection, review or appeal is made and determined under this Part, the Commissioner must take any necessary actions required to give effect to the determination of the objection, review or appeal.
Part 4
Miscellaneous
Part 4 Miscellaneous
Division 1
Administration
Division 1 Administration
17
Delegation by Commissioner, &c.
17 Delegation by Commissioner, &c.
(1) The Commissioner may delegate any of his or her functions or powers related to the administration of this Act other than this power of delegation.
(2) Subject to the direction and control of the Commissioner, a Deputy Commissioner has the same functions and powers as the Commissioner under this Act.
18
Authorised officers
18 Authorised officers
(1) The Commissioner may appoint a person as an authorised officer for the purposes of this Act.
(3) The Commissioner is to issue an authorised officer with an identity card that –
(a) bears the name, signature and photograph of the authorised officer to whom it relates; and
(b) states that the authorised officer is an authorised officer for the purposes of this Act.
(4) An identity card of an authorised officer under this section may be in the form of an endorsement on an identity card issued to that authorised officer under a taxation law, within the meaning of the Taxation Administration Act 1997 .
19
Power to require repayment and impose penalty
19 Power to require repayment and impose penalty
(1) The Commissioner may, by written notice, require a claimant (or former claimant) to repay all or part of a rebate paid to the claimant (or former claimant) if –
(a) the amount of the rebate to be repaid was paid in error; or
(b) the Commissioner varies or reverses, in accordance with section 11 , the decision in respect of which the amount of the rebate to be repaid was paid; or
(c) the Commissioner is satisfied that the claimant is not eligible for the amount of the rebate that was paid.
(2) The Commissioner, by the notice specified in subsection (1) or another notice, may impose a penalty not exceeding the amount of the rebate that the claimant (or former claimant) is required to repay under subsection (1) if –
(a) the claimant (or former claimant) contravenes section 23(1) or (2) ; and
(b) as a result of that contravention a rebate, or part of a rebate, is paid, or is applied against a tax liability due and owing to the Crown, under this Act.
(3) If a claimant (or former claimant) –
(a) fails to make a repayment required under this section; or
(b) fails to meet the conditions of the rebate –
the Commissioner may, by written notice, impose a penalty not exceeding the amount that the claimant (or former claimant) is required to repay.
(4) If an amount of a rebate is paid in error to a third party, the Commissioner may, by written notice, require the third party to repay the amount to the Commissioner.
20
Power to recover amount paid in error, &c.
20 Power to recover amount paid in error, &c.
(1) This section applies to the following amounts:
(a) an amount that a claimant (or former claimant) is required to repay under the conditions of the rebate or by requirement of the Commissioner under this Act;
(b) an amount of penalty imposed on a claimant (or former claimant) under section 19 ;
(c) an amount that a third party is required to repay by requirement of the Commissioner under this Act.
(2) The liability arising from a requirement to pay, or repay, an amount to which this section applies is, if the requirement attaches to 2 or more persons, joint and several.
(3) The Commissioner may recover as a debt due to the Crown –
(a) an amount to which this section applies; and
(b) any reasonable costs and expenses incurred by the Commissioner in connection with the recovery, or attempted recovery, by any lawful means of the amount referred to in paragraph (a) .
(4) If a person fails to pay an amount to which this section applies, or any part of that amount, within the time specified in a notice under section 19 which requires that payment, the Commissioner, by written notice to the person, may require the person to pay interest on the unpaid amount.
(5) If the Commissioner requires a person to pay interest on an amount under subsection (4) , the person is liable to pay interest on the amount, or part of the amount, that is unpaid –
(a) on a daily basis from the end of the last day for payment, specified in the notice under section 19 in respect of the amount, until the day it is paid; and
(6) Despite subsection (5) , a person is not liable to pay interest on an amount as required by that subsection if the amount of interest that would be payable under that subsection would be less than $20.
(7) The Commissioner may enter into an arrangement (which may include provision for the payment of interest in respect of the arrangement) for payment of a liability outstanding under this section by instalments.
(8) The Commissioner may write off the whole or part of a liability to pay an amount to which this section applies, or any interest relating to such an amount, if satisfied that action, or further action, to recover the amount outstanding or interest is impracticable or unwarranted.
(9) The Commissioner, in any circumstances he or she considers appropriate, may remit interest payable under this section by any amount.
21
Recovery of rebates and costs from third parties
21 Recovery of rebates and costs from third parties
(1) The Commissioner, by notice in writing, may require any of the following persons instead of the claimant (or former claimant) to pay any amount due under section 19 or 20 in respect of the claimant:
(a) a person from whom any money is due or accruing or may become due to the claimant (or former claimant);
(b) a person who holds or may subsequently hold money for or on account of the claimant (or former claimant);
(c) a person who holds or may subsequently hold money on account of some other person for payment to the claimant (or former claimant);
(d) a person who has authority from some other person to pay money to the claimant (or former claimant).
(2) A copy of the notice made under subsection (1) is to be served on the claimant (or former claimant) to which it relates.
(3) The amount of money required to be paid by a person under subsection (1) is –
(a) if the amount of the money held or due or authorised to be paid does not exceed the amount owed by the claimant (or former claimant) to the Commissioner, all the money; or
(b) if the amount of the money exceeds the amount owed by the claimant (or former claimant), sufficient money to pay the amount owed.
(4) A person required to pay money under this section must pay the money to the Commissioner –
(a) as soon as practicable after receiving the notice referred to in subsection (1) ; or
(b) when the money is held by the person –
whichever is the later, or within any later period specified by the Commissioner.
(5) A person subject to a requirement of the Commissioner under this section must comply with the requirement.
Penalty: In the case of –
(a) a body corporate, a fine not exceeding 500 penalty units; or
(b) an individual, a fine not exceeding 100 penalty units.
(6) If the whole or a part of an amount specified in a notice referred to in subsection (1) is paid by a person other than the person on whom that notice is served –
(a) within 7 days after the receipt of the payment, the Commissioner is to notify –
(i) the person on whom the notice was served; and
(ii) the claimant (or former claimant) to which the notice relates; and
(b) that notice is taken to be amended accordingly to deduct the amount so paid from the amount owing under the notice.
22
Application of certain provisions of Taxation Administration Act 1997
22 Application of certain provisions of Taxation Administration Act 1997
(a) a reference in those Parts of that Act to a "required record" includes a reference to a record required to be kept for the purposes of this Act; and
(b) a reference in those Parts of that Act to an "authorised officer" were a reference to an authorised officer within the meaning of this Act; and
(c) a reference in those Parts of that Act to a "taxation law" included a reference to this Act; and
(d) a reference in those Parts of that Act to a "tax officer" were a reference to an authorised officer within the meaning of this Act; and
(e) a reference in those Parts of that Act to a "taxpayer" were a reference to a claimant (including a former claimant) within the meaning of this Act; and
(f) the reference in section 60(1) of that Act to a "person's tax liability under a taxation law to be properly assessed" were a reference to a person's claim to be properly decided within the meaning of this Act; and
(g) the reference in section 65(2) of that Act to a "person's tax liability" were a reference to a person's eligibility for a rebate under this Act; and
(1) A person must not, in giving any information under this Act, dishonestly –
(a) make a statement that is false or misleading; or
(b) omit any matter from a statement if, without that matter, the statement is false or misleading; or
(c) provide a document that is false or misleading without informing the person to whom the document is provided of that fact.
Penalty: In the case of –
(a) a body corporate, a fine not exceeding 750 penalty units; or
(b) an individual, a fine not exceeding 150 penalty units.
(2) A person must not, in giving any information under this Act, intentionally or negligently –
(a) make a statement that is false or misleading; or
(b) omit any matter from a statement if, without that matter, the statement is false or misleading; or
(c) provide a document that is false or misleading without informing the person to whom the document is provided of that fact.
Penalty: In the case of –
(a) a body corporate, a fine not exceeding 500 penalty units; or
(b) an individual, a fine not exceeding 100 penalty units.
24
Evidence
24 Evidence
(1) A certificate signed by the Commissioner stating that a rebate was paid to a person named in the certificate on a specified date is admissible in legal proceedings as evidence of the payment.
(2) A copy of a notice issued by the Commissioner imposing a penalty under this Act is admissible in legal proceedings as evidence of the imposition of the penalty.
(3) A copy of a notice issued by the Commissioner requiring the payment or repayment of a specified amount is admissible in legal proceedings as evidence –
(a) that the requirement was made; and
(b) that the amount specified in the notice was outstanding at the date of the notice.
25
Time for commencing prosecution
25 Time for commencing prosecution
Proceedings for an offence against this Act may only be commenced within 3 years after the date on which the offence is alleged to have been committed.
26
Protection of Commissioner, &c.
26 Protection of Commissioner, &c.
(1) This section applies to –
(a) the Commissioner or Deputy Commissioner; and
(b) a delegate of the Commissioner who is a State Service officer or State Service employee.
(2) No personal liability attaches to a person to whom this section applies for an honest act or omission of that person in the performance or exercise, or purported performance or exercise, of his or her functions or powers under this Act.
(3) A liability that would, but for subsection (2) , lie against a person to whom this section applies, lies instead against the Crown.
(1) If the Minister considers it appropriate, in response to the impact of the disease known as COVID-19 (including any disease that is recognised as a mutated form of that disease) in the State, the Minister, by order and on one or more occasions, may do one or more of the following:
(b) extend a period specified in section 6(2)(b) for which a rebate under this Act is payable.
(2) If the Minister makes an order under subsection (1) (a) that results in the shortening of a period, the order must not take effect for a period of at least 14 days after the day on which the making of the order is notified in the Gazette.
(1) The Governor may make regulations for the purposes of this Act.
(2) Regulations made under this Act may –
(a) authorise any matter to be determined, applied or regulated by the Commissioner; and
(b) be made subject to conditions or so as to apply differently according to matters, limitations or restrictions, whether as to time, circumstance or otherwise, specified in the regulations.
(3) Regulations made under this Act may –
(a) provide that a contravention of, or failure to comply with, any of the regulations is an offence; and
(b) in respect of such an offence, provide for the imposition of a fine not exceeding 50 penalty units and, in the case of a continuing offence, a further fine not exceeding 10 penalty units for each day during which the offence continues.
(a) may adopt, either wholly or in part and with or without modification, and either specifically or by reference, any document, standard, rule, code, qualification or course of education or training whether the document, standard, rule, code, qualification or course of education or training is published, issued or established before or after the commencement of Part 3 of the Taxation Related Legislation (Housing Availability and Payroll Relief) Act 2018 ; and
Sourced from Tasmanian Legislation Online (legislation.tas.gov.au), CC BY 4.0.
Part 1 Preliminary
Part 1 Preliminary
1 Short title
1 Short title
This Act may be cited as the Payroll Tax Rebate (Apprentices, Trainees and Youth Employees) Act 2017 .
2 Commencement
2 Commencement
This Act –
(a) commences on 1 July 2017 if it receives the Royal Assent on or before that day; or
(b) is taken to have commenced on 1 July 2017 if it receives the Royal Assent after that day.
3 Interpretation
3 Interpretation
In this Act, unless the contrary intention appears –
apprentice has the same meaning as in the Training and Workforce Development Act 2013 ;
authorised officer means a person appointed as an authorised officer under section 18(1) ;
claim means a claim, under section 8 , of a rebate of payroll tax paid in respect of an eligible employee;
claimant means an employer who has made a claim;
claim period means any of the following periods in respect of which a claim has been made:
(a) a calendar month;
(b) a financial year;
(c) such other period as determined by the Commissioner;
Commissioner means the Commissioner of State Revenue appointed under section 7 of theTaxation Administration Act 1997 ;
Deputy Commissioner means a person appointed under section 11 of theTaxation Administration Act 1997 ;
eligible employee – see section 5 ;
[Section 3 Amended by No. 5 of 2018, s. 8, Applied:01 Jul 2018]
[Section 3 Amended by No. 5 of 2018, s. 8, Applied:01 Jul 2018]eligible period means –
(a) [Section 3 Amended by No. 46 of 2020, s. 4, Applied:01 Jan 2021][Section 3 Amended by No. 8 of 2022, s. 14, Applied:05 Apr 2022][Section 3 Amended by No. 5 of 2024, s. 15, Applied:01 Jul 2024] in relation to an eligible employee, or a class of eligible employees, prescribed for the purposes of this definition, the period commencing on 1 July 2017 and ending on 30 June 2025 inclusive; or
(ab) [Section 3 Amended by No. 9 of 2020, s. 10, Applied:01 Apr 2020] in relation to a youth employee who is an eligible employee –
(i) the period commencing on 1 July 2017 and ending on 30 June 2019 inclusive; or
(ii) [Section 3 Amended by No. 46 of 2020, s. 4, Applied:01 Jan 2021][Section 3 Amended by No. 8 of 2022, s. 14, Applied:05 Apr 2022][Section 3 Amended by No. 5 of 2024, s. 15, Applied:01 Jul 2024] the period commencing on 1 April 2020 and ending on 30 June 2025 inclusive; or
(b) [Section 3 Amended by No. 46 of 2020, s. 4, Applied:01 Jan 2021] in relation to any other eligible employee –
(i) the period commencing on 1 July 2017 and ending on 30 June 2019 inclusive; or
(ii) [Section 3 Amended by No. 8 of 2022, s. 14, Applied:05 Apr 2022][Section 3 Amended by No. 5 of 2024, s. 15, Applied:01 Jul 2024][Section 3 Amended by No. 31 of 2025, s. 8, Applied:30 Jun 2025] the period commencing on 1 January 2021 and ending on 30 June 2025 inclusive; or
(c) [Section 3 Amended by No. 31 of 2025, s. 8, Applied:30 Jun 2025] in relation to an apprentice who is an eligible employee, and in addition to any other period specified in this definition, the period commencing on 1 July 2025 and ending on 30 June 2026 inclusive;
employer means a person registered as an employer under section 86 of thePayroll Tax Act 2008 ;
employment agent has the same meaning as in section 37 of thePayroll Tax Act 2008 ;
interest has the same meaning as in the Taxation Administration Act 1997 ;
investigation means an investigation under this Act or the Taxation Administration Act 1997 in relation to payroll tax;
payroll tax has the same meaning as in the Payroll Tax Act 2008 ;
payroll tax liability includes the liability to pay payroll tax and any interest, or penalty tax, payable in respect of payroll tax;
penalty tax has the same meaning as in the Taxation Administration Act 1997 ;
rebate means an amount paid, or payable, by the Commissioner under this Act;
scheme means the scheme established under this Act;
tax liability has the same meaning as in the Taxation Administration Act 1997 ;
trainee has the same meaning as in the Training and Workforce Development Act 2013 ;
training contract has the same meaning as in the Training and Workforce Development Act 2013 ;
youth employee means a person who has attained the age of 15 years, but has not attained the age of 25 years, who is employed or engaged other than as a trainee or apprentice.
Part 2 Rebate Scheme
Part 2 Rebate Scheme
4 Establishment of rebate scheme
4 Establishment of rebate scheme
(1) The Crown is to establish a scheme for the payment of rebates equivalent to the payroll tax paid by an employer for an eligible employee as specified in this Act.
(2) Rebates are to be paid to employers under such conditions as are determined by the Commissioner.
5 Eligible employee for rebate
5 Eligible employee for rebate
(1) For the purposes of this Act, a person is an eligible employee if –
(a) the person is employed or engaged as a trainee, or apprentice, by an employer within the eligible period; or
(b) the person –
(i) is employed or engaged within the eligible period by an employer, as a new employee of that employer, in employment that is not casual employment within the meaning of the Industrial Relations Act 1984 ; and
(ii) is a youth employee at the time of being so employed or engaged.
(2) For the purposes of subsection (1)(a) , a person is employed or engaged as a trainee, or apprentice, within the eligible period if the person's training contract takes effect under the Training and Workforce Development Act 2013 within the eligible period.
(3) For the purposes of subsection (1)(b) , a youth employee is a new employee of an employer, if the youth employee –
(a) [Section 5 Subsection (3) amended by No. 9 of 2020, s. 11, Applied:01 Apr 2020] was not employed or engaged by that employer –
(i) in relation to the period specified in paragraph (ab)(i) of the definition of eligible period in section 3 , on 25 May 2017; or
(ii) in relation to the period specified in paragraph (ab)(ii) of the definition of eligible period in section 3 , on 31 March 2020; and
(b) [Section 5 Subsection (3) amended by No. 9 of 2020, s. 11, Applied:01 Apr 2020] has not been previously employed, or engaged, by that employer within the relevant eligible period.
(4) For the purposes of this section, if a person employed or engaged as a trainee, or apprentice or youth employee, within the eligible period is a service provider within the meaning of section 37 of thePayroll Tax Act 2008 –
(a) the person is taken to be employed or engaged by the employment agent who procured the services of the service provider within the meaning of ; and
6 Duration of rebate
6 Duration of rebate
(1) A rebate under this Act is only payable in respect of a trainee or apprentice for a period of 2 years from the day that the training contract of the trainee or apprentice takes effect under the Training and Workforce Development Act 2013 .
(2) [Section 6 Subsection (2) substituted by No. 9 of 2020, s. 12, Applied:01 Apr 2020] A rebate under this Act is only payable in respect of a youth employee –
(a) if the youth employee is an eligible employee under section 5(1)(b) by virtue of being employed or engaged within the period specified in paragraph (ab)(i) of the definition of eligible period in section 3 , for a period of one year from the date that the youth employee commenced the employment or engagement within that eligible period; or
(b) if the youth employee is an eligible employee under section 5(1)(b) by virtue of being employed or engaged within the period specified in paragraph (ab)(ii) of the definition of eligible period in section 3 , for a period of one year from the date that the youth employee commenced the employment or engagement within that eligible period.
(3) A rebate payable under this Act in respect of an eligible employee who is a youth employee is payable for the entire period of one year as calculated under subsection (2) for the eligible employee even if the eligible employee ceases to be a youth employee during that period.
7 Amount of rebate
7 Amount of rebate
(1) In this section –[Section 7 Subsection (1) amended by No. 5 of 2018, s. 9, Applied:01 Jul 2018]
[Section 7 Subsection (1) amended by No. 5 of 2018, s. 9, Applied:01 Jul 2018]eligible employee wages, in relation to a claim period, means the taxable wages paid by an employer in respect of each eligible employee of that employer for that claim period;
[Section 7 Subsection (1) amended by No. 5 of 2018, s. 9, Applied:01 Jul 2018]taxable wages has the same meaning as in the Payroll Tax Act 2008 .
(2) Unless otherwise determined by the Commissioner, a rebate of payroll tax payable under this Act, to an employer in respect of a claim period, is the lesser of the following:
(a) [Section 7 Subsection (2) amended by No. 5 of 2018, s. 9, Applied:01 Jul 2018] the amount of payroll tax paid by that employer for that claim period that would remain after deducting, from that amount of payroll tax paid, the amount of payroll tax that would have been payable by that employer for that claim period if the taxable wages paid by that employer for that claim period did not include the eligible employee wages payable for that claim period;
(b) the amount of payroll tax paid by that employer for that claim period.
8 Claim for rebate
8 Claim for rebate
(1) An employer may claim a rebate of payroll tax, paid in respect of a claim period, from the Commissioner if –
(a) the employer has paid in full the employer's payroll tax liability up to, and including, that claim period; and
(b) the employer has complied with, to the satisfaction of the Commissioner –
(i) the applicable requirements of this Act and the Payroll Tax Act 2008 ; and
(ii) any investigation in respect of the employer; and
(c) there are no incomplete investigations in respect of the employer.
(2) A claim must –
(a) be made in a form approved by the Commissioner; and
(b) include any additional information requested by the Commissioner; and
(c) be made –
(i) within the 9-month period immediately
This is an opening excerpt, not the complete document.
Enforcement: the Commissioner can require repayment and impose penalties (s 19), recover amounts as a debt with interest (s 20), and serve notices on third parties holding funds (s 21). False or misleading information attracts separate penalties (s 23). The Act sets a 3‑year time limit for prosecutions (s 25).
Interactions and limits
Cross‑legislation: the scheme operates as a supplement to the Payroll Tax Act 2008 and uses that Act's definitions and registration rules (s 3, s 7).
Offset power: any rebate payable may be applied by the Commissioner to outstanding tax liabilities owed by the employer to the Crown (s 10), and the Commissioner must notify the employer when that is done.
Judicial and administrative review: claimants can object to decisions, have objections determined by the Commissioner with reasons provided (s 14), and seek review in the Magistrates Court (Administrative Appeals Division) or appeal to the Supreme Court, subject to time limits and procedural notice to the Commissioner (s 15).
The scheme's design therefore hinges on administrative discretion (Commissioner and regulations), cross‑application of the TAA's compliance machinery (s 22), and discrete temporal windows for eligibility and rebate duration (s 3, s 6). The Act treats employment agent arrangements and intra‑group transfers with specific rules (s 5(4)-(6)), thereby allocating eligibility consequences in contexts that commonly raise payroll tax complexity.
Employers undergoing business restructures: the Act excludes employees brought into an employer's payroll by assumption of entitlements via mergers, takeovers or intra‑group transfers (s 5(5)(a)-(b)), but provides a mechanism allowing a subsequent employer to claim if the person was an eligible employee immediately before the transfer (s 5(6)). Employers experiencing such transitions must preserve evidence of eligibility dates and prior employer status.
Legal and compliance actors
Tax advisers, auditors and payroll service providers will be implicated by the requirement to demonstrate taxable wages, training contract commencement dates and new‑hire status, and by the importation of TAA compliance processes (s 7, s 8, s 22).
Courts and tribunals: the Magistrates Court (Administrative Appeals Division) and Supreme Court handle review and appeal (s 15). Administrative law advisers will need to navigate objection deadlines and the Commissioner's power to vary/reverse decisions independently of objections (s 11).
Who bears the cost
In practice, the Crown funds rebates from the Public Account (s 12), but employers bear the administrative and compliance costs of claiming, and the risk of repayment and penalties if they provide false/misleading information or fail conditions (ss 19, 23). Third parties may be required to pay funds if they hold money for claimants (s 21).
This coverage profile shows that while the scheme is targeted at reducing the payroll tax burden on hiring or training certain categories of employees, it directly alters the administrative responsibilities and potential liabilities of registered employers, employment agents, third‑party payors and their advisers.
Vary/reverse decisions: the Commissioner may vary or reverse a decision on the Commissioner's own motion if satisfied the decision was incorrect, made with false/misleading information, or the claimant failed to provide required information or comply with conditions (s 11(a)-(d)). This power operates independently of the objection process.
Recovery and penalty powers: the Commissioner can issue written notices requiring repayment and may impose penalties up to the amount of rebate repaid where conduct contravened s 23 or conditions (s 19(1)-(3)). The Commissioner can recover amounts as debt, charge interest under the Taxation Administration Act, and enter into instalment arrangements or write‑off amounts in specified circumstances (s 20).
Obligations on other persons
Third parties who are holding or authorised to pay money to claimants must pay amounts if the Commissioner issues a notice under s 21; refusal to comply carries statutory fines (s 21(1)-(5)). The Act requires the Commissioner to serve a copy of such a notice on the claimant (s 21(2)).
Authorised officers: the Commissioner may appoint authorised officers (s 18(1)), issue identity cards (s 18(3)), and for TAA purposes these authorised officers are "prescribed persons" (s 18(2)), which connects them to TAA inspection powers imported by s 22.
Procedural protections and burdens of proof
Onus on objector: a person making an objection has the onus of proving their case and the grounds for the objection (s 13(5)).
Non‑stay: lodging an objection or beginning a review/appeal does not stay operation of the decision (s 16(1)). The Commissioner must give effect to determinations once resolved (s 16(2)).
Record‑keeping and regulatory compliance (imported obligations)
The Act applies Parts 8 and 9 of the Taxation Administration Act 1997 with modifications (s 22). That imports record‑keeping, evidence preservation and information‑gathering duties for claimants and associated TAA administrative procedures, albeit with certain textual adjustments to fit the rebate scheme.
These duties and rights create a compliance regime where the Commissioner exercises broad decision and enforcement discretion, while claimants carry the evidential burden and time‑sensitivity of claims, and face potential repayment and penalty exposure if conditions or information standards are not met.
Third‑party recovery
The Commissioner can require third parties who hold or are due to hold money for a claimant to pay amounts in satisfaction of a claimant's repayment obligation (s 21(1)). The Commissioner must serve a copy of the notice on the claimant (s 21(2)). Payment by a third party amends the notice accordingly and the Commissioner must notify the relevant parties within seven days (s 21(6)).
Administrative review and judicial remedies
Objection and appeal framework: claimants can lodge written objections within 60 days and the Commissioner must determine objections and provide written reasons (ss 13-14). Claimants may seek review in the Magistrates Court (Administrative Appeals Division) or appeal to the Supreme Court, subject to time limits and procedural notice requirements (s 15).
Non‑stay rule: lodging an objection, review or appeal does not stay the operation of the decision (s 16(1)); the Commissioner must take any action required to implement the final determination (s 16(2)).
Limitations and protections
Time to prosecute: prosecutions for offences under the Act must commence within three years of the alleged offence date (s 25).
Commissioner protection: s 26 shields the Commissioner, Deputy Commissioner and certain delegates from personal liability for honest acts or omissions in performing functions under the Act; such liabilities are instead borne by the Crown.
Operational enforcement levers
The Act brings in TAA Parts 8 and 9 (s 22), importing the TAA's compliance, inspection and evidence powers subject to the listed textual modifications. That magnifies the Commissioner's operational toolkit for audits, notices and compelled production of documents.
Authorised officers: s 18 provides for appointment, identity cards and ties authorised officers to the TAA's "prescribed person" regimen, enabling investigatory presence on the ground and connection to the TAA enforcement regime.
Taken together, the Act combines civil administrative enforcement (repayment notices, recoveries, offsets, interest) with statutory penalties for false or misleading information and criminal‑adjacent exposure where dishonesty exists; recovery routes include third‑party garnishee‑style notices and ordinary debt recovery.
Interest and recovery: s 20 expressly cross‑refers to TAA s 35 for the interest rate calculation on overdue repayments. This ties the rebate scheme to the established TAA parameters for interest, daily accrual and potentially other TAA interest policy.
Definition reliance and temporal rules: eligibility for trainees and apprentices is determined by training contract commencement under the Training and Workforce Development Act 2013 (s 5(2)), and the "new employee" test for youth hires references employment status on specified historical dates,thus establishing interactions between employer records, historical payroll data, and the IR Act's definition of casual employment (s 5(3)).
Delegation, regulations and ministerial orders
The Governor and regulations: s 27 allows regulations to authorise matters to be determined by the Commissioner and to adopt external documents by reference (s 27(1)-(3); s 27(4)). This opens the door for the Commissioner to receive delegated rule‑making authority in prescribed areas.
Ministerial emergency powers: s 26A permits the Minister, by order, to extend eligible period end‑dates or rebate durations in response to COVID‑19 impacts. Orders are statutory rules under the Rules Publication Act but are not instruments of legislative character under the Subordinate Legislation Act 1992 (s 26A(4)). The Acts Interpretation Act provisions also apply to those orders (s 26A(3)).
Conflicts, precedence and operational friction
Offset power vs. claimant expectations: s 10 permits the Commissioner to apply an approved rebate against other Crown tax liabilities. This interacts directly with employers' expectations of receiving a cash rebate and creates an operational precedence for the Crown's netting of taxpayer debt.
Third‑party notices and garnishment: by enabling notices to third parties holding or due to hold funds for claimants (s 21), the Act overlays the rebate recovery regime onto existing payment flows, potentially creating friction between payroll providers, agents and employers.
Administrative timing and criminal time limits: the Act creates its own three‑year time limit for prosecutions (s 25); practitioners must reconcile this with limitation periods for related TAA offences or other statutory books.
Overall, the Act is not a stand‑alone statutory monolith; it is integrated with, and in many respects dependent upon, the Payroll Tax Act 2008 and the TAA for the definitions, compliance toolkit and recoveries. Practitioners need to read the Act in the context of those instruments to see the full scope of obligations, audit triggers and enforcement remedies.
Amended s 3 in parts b and c and s 29 , annotations show "[Section 3 Amended by No. 31 of 2025, s. 8, Applied:30 Jun 2025]" and "[Section 29 Amended by No. 31 of 2025, s. 9, Applied:30 Jun 2025]". Notably, s 3(c) adds an additional eligible period clause for apprentices from 1 July 2025 to 30 June 2026 (applied 30 Jun 2025 notation).
Operational implications of amendments in the Act
The amendment annotations show the Act's eligible periods and durations have been amended multiple times. Practitioners must consult the operative text (including the amendment annotations) to determine the precise eligible windows applicable to a particular claimant.
The source includes applied dates for amendments, indicating when each change became effective (for example, 01 Jul 2018, 01 Apr 2020, 01 Jan 2021, 05 Apr 2022, 01 Jul 2024, 30 Jun 2025). Those dates are part of the statutory record embedded in the Act as presented.
Since the Act's repeal date is set in s 29 (repealed on 30 June 2029, with amendment annotations showing changes applied up to 30 Jun 2025), the amendment history affects the temporal scope of eligibility and how the scheme operated across multiple legislative updates.
This listing is confined to the amendment annotations contained in the provided Act text. The Act indicates several targeted amendments focused on eligible period definitions, youth rebate windows, and the insertion of s 26A (COVID response power). For definitive historical tracking practitioners should consult official consolidated versions and the legislative instruments cited in the annotations.
Information and evidence risk
Statutory declaration requirement and onus: the Commissioner can require statutory declarations to support a claim (s 8(3)). Additionally, the objector bears the onus to prove their objection (s 13(5)). The combination means the administrative burden of documentary evidence may be high and the claimant must be prepared to substantiate eligibility robustly.
Penalties for false/misleading information: s 23 imposes significant penalty unit exposure for dishonest or negligent false/misleading information. Errors in payroll or personnel records can expose claimants to repayment and penalty risk.
Transfer and corporate restructuring pitfalls
Exclusion for assumed entitlements: persons employed because an employer assumes employee entitlements as part of a business merger, takeover, acquisition or similar dealing are excluded from eligibility (s 5(5)(a)). Employers that acquire businesses must show whether the employee is a genuinely new hire or an assumed employee.
Intra‑group transfers: s 5(5)(b) excludes employees transferred within the same group; however s 5(6) allows a subsequent employer to be treated as eligible if the person was an eligible employee for the previous employer immediately before transfer. The statutory test requires careful fact‑finding about employment continuity and timing.
Recovery from third parties and joint liability
Third‑party notices and joint and several liabilities: s 21 allows the Commissioner to require third parties to pay amounts instead of the claimant, and s 20(2) makes liability joint and several if it attaches to multiple persons. Entities that hold funds for a claimant (for example payroll agents, remitters) can be levied even if they were not direct beneficiaries, and may wish to review their contractual indemnities.
Administrative and legislative flux
Regulations and adopted documents: s 27 permits regulations to adopt documents, codes, standards, or qualifications, including by reference, and s 27(4) specifically allows regulations to adopt matters related to the eligible period definition. This means eligibility criteria could be expanded or clarified by regulation rather than primary statute. Practitioners must monitor subordinate legislation and adopted standards.
Ministerial orders under s 26A: the Minister can alter eligible periods and extend durations in response to COVID-related impacts. Orders are statutory rules but are not instruments of legislative character under the Subordinate Legislation Act 1992 (s 26A(4)(b)), potentially affecting consultation and disallowance mechanics.
Procedural pitfalls in dispute resolution
Non‑stay of decision: lodging an objection or initiating review does not stay the operation of the decision (s 16(1)). Claimants seeking to prevent repayment or enforcement pending review must pursue interlocutory relief, which adds litigation cost and uncertainty.
These "gotchas" are concrete legal and operational traps embedded in the Act's procedural, evidential and definitional architecture. Each creates a specific compliance or litigation risk that employers, advisers and service providers should manage through a combination of record maintenance, advance planning at corporate change points, and early liaison with the Commissioner when ambiguity exists.
Observe claim timeframes strictly
Lodge a claim within nine months after the end of the financial year that includes the claim period unless the Commissioner specifies otherwise; if an investigation delayed lodgment and was commenced before expiry, claim within two months after the investigation’s completion (s 8(2)(c)). Treat claims lodged after the relevant period as void (s 8(4)).
Ensure compliance with investigations and TAA record obligations
Comply with any investigation and with Parts 8 and 9 of the Taxation Administration Act 1997 as applied (s 22). Maintain "required records" for the rebate scheme in accordance with TAA obligations imported by s 22(1)(a).
Anticipate Commissioner conditions and payment method
The Commissioner can impose conditions and determine the payment method (s 4(2), s 9(2)-(3)). Be ready to accept payment by the method nominated and to comply with any post‑payment reporting or use conditions.
Manage offset risk and outstanding liabilities
Before relying on a rebate for cashflow, confirm with the Commissioner whether outstanding tax liabilities exist because s 10 permits the Commissioner to apply a rebate against other tax liabilities, and the Commissioner must notify the employer (s 10(1)-(2)). Consider settling outstanding liabilities proactively to avoid offsets.
Implement internal controls to ensure information accuracy
Given s 23’s penalties for false or misleading information, put in place review checks on payroll data, start dates, training contract commencement dates and new‑hire status; ensure that statutory declarations are carefully prepared.
Objection, review and litigation steps
If the Commissioner issues an adverse decision, lodge a written objection within 60 days including grounds (s 13(2)). Prepare to discharge the onus of proof in the objection (s 13(5)). If dissatisfied with the objection determination, avenues are Magistrates Court (Administrative Appeals Division) for review or Supreme Court for appeal, observing the 60‑day limit from written notice (s 15(2)). Remember to give the Commissioner written notice at least 14 days prior to applying for review or appeal (s 15(3)).
Dealing with repayment and enforcement notices
If the Commissioner issues a repayment notice (s 19), consider:
Prompt challenge through objection if grounds exist (s 13);
Negotiating instalment arrangements under s 20(7);
Seeking remission or write‑off under s 20(8) if recovery is impracticable, with supporting evidence;
Avoiding accumulation of interest by paying within notice timelines or negotiating alternative terms (s 20(4)-(6)).
Practical record list to retain (minimum)
Training contracts and commencement dates (Training and Workforce Development Act references) for apprentices/trainees (s 5(2), s 6(1));
Employment contracts and commencement records for youth employees showing age and employment status (s 5(1)(b), s 3 definition);
Payroll registers, taxable wages calculations, PAYG and superannuation reports to substantiate taxable wages and payroll tax paid (s 7);
Evidence of any business acquisitions, transfers or intra‑group reorganisations (s 5(5)-(6));
Correspondence with the Commissioner, forms submitted and any statutory declarations (s 8(2)-(3));
Documents relied on by regulations if the Commissioner has adopted external documents by reference (s 27(4)).
Engage advisers early
Because the Commissioner has broad administrative discretion (ss 4(2), 9(2)), and because the scheme draws on definitions and compliance powers from other statutes (s 22), involve specialist tax advisers and payroll lawyers early to verify eligibility, prepare robust supporting evidence, and manage the objection/review process if required.
Monitor regulatory and ministerial instruments
Track Commissioner determinations, regulations and any Ministerial orders under s 26A that alter eligible periods or rebate durations. Regulations may change operative criteria or adopt external standards by reference (s 27(4)); Ministerial orders can extend or shorten periods in response to COVID‑19 (s 26A).
Compliance is therefore a process of record creation, procedural discipline, and proactive management of interacting payroll, training and labour‑law records, coupled with readiness to respond to administrative inquiries and repayment notices.
section 37 of the
Payroll Tax Act 2008
(b) that employment agent is taken to be the employer of the person for the purposes of this Act.
(5) For the purposes of this section, a person is not employed or engaged as a trainee, apprentice or youth employee by an employer within the eligible period if –
(a) the person is employed or engaged by the employer within the eligible period as a result of the employer assuming the responsibility for any of the employee's entitlements, either directly or indirectly, as part of a business merger, takeover, acquisition or similar business dealing; or
(b) during the eligible period, the person is employed or engaged by the employer as a result of a transfer of the employee from another employer within the same group, within the meaning of section 67 of thePayroll Tax Act 2008 , as the employer.
(6) Despite subsection (5) , if –
(a) an employer (the subsequent employer) employs or engages a person within the eligible period in either circumstance specified in that subsection; and
(b) immediately before the subsequent employer employed or engaged the person, the person was an eligible employee for his or her previous employer –
that person is taken to be an eligible employee in respect of the subsequent employer as if the subsequent employer were the previous employer of the person.
(7) For the avoidance of doubt, the fact that –
(a) a person is employed or engaged on a part-time or full-time basis; or
(b) a rebate has been payable under this Act in respect of a trainee or apprentice; or
(c) a rebate has been payable under this Act in respect of a youth employee to a previous employer of the youth employee –
does not affect whether the person is an eligible employee for the purposes of this Act.