Div 1Liability of employers other than the Commonwealth

Division 1—Liability of employers other than the Commonwealth Application of Division 10. This Division does not apply to: (a) the Commonwealth; or (b) a Commonwealth authority that cannot, by a Commonwealth law, be made liable to taxation by the Commonwealth. Charge payable by employer 11. Subject to this Act, training guarantee charge imposed on an employer’s training guarantee shortfall in a year is payable by the employer. Election by members of business groups 12. (1) Two or more corporations who are members of a business group may elect to have themselves treated as a single employer in relation to a year for the purposes of this Act. (2) An election may be made in relation to a year by giving written notice in the prescribed form to the Commissioner on or before 30 September in the following year. (3) If members of a business group make an election: (a) this Act applies, with any necessary modifications, to the members as if they were a single person during the year; and (b) the members are jointly and severally liable for the payment of any training guarantee charge payable by them for the year. (4) Two or more corporations are members of a business group for the purposes of this section if they are related corporations within the meaning of the Companies Act 1981. Charge not payable unless employer has training guarantee shortfall etc. 13. (1) Training guarantee charge is not payable by an employer for a year unless the employer has a training guarantee shortfall in the year. (2) Training guarantee charge may also not be payable by the employer under any of the following provisions: (a) section 16 (Exemption for employers with small annual national payrolls); (b) section 17 (Exemption for particular employers); (c) section 18 (Exemption for non-resident employers). Determination of training guarantee shortfall 14. The training guarantee shortfall of an employer in a year is the amount (being an amount not below 0) calculated, in relation to the employer and the year, using the formula: minimum training requirement — net eligible training expenditure. Minimum training requirement 15. (1) The minimum training requirement of an employer in a year is the amount calculated, in relation to the employer and the year, using the formula: minimum training rate × annual national payroll. (2) The minimum training rate is: (a) for the year commencing on 1 July 1990 and the year commencing on 1 July 1991—1%; and (b) for a later year—1.5%. Exemption for employers with small annual national payrolls 16. Training guarantee charge is not payable by an employer for a year if the annual national payroll of the employer for the year is less than the threshold amount for the year. Exemption for particular employers 17. Training guarantee charge is not payable by an employer that is: (a) a public benevolent institution (other than a public hospital); or (b) a religious institution in relation to those of its employees whose duties are solely or principally: (i) pastoral duties; or (ii) duties directly related to the practice, study, teaching or propagation of religious beliefs. Exemption for non-resident employers 18. Training guarantee charge is not payable by an employer for a year unless the employer is a resident of Australia during the whole or a part of the year. Arrangements to avoid or reduce training guarantee charge 19. If: (a) an employer makes an arrangement with another person; and (b) as a result of the arrangement the employer’s training guarantee shortfall in a year is reduced; and (c) in the Commissioner’s opinion the arrangement was made solely or principally for the purpose of reducing the amount of training guarantee charge payable by the employer for the year; the employer is liable to pay for the year an amount of training guarantee charge equal to the amount that, in the Commissioner’s opinion, the employer would have been liable to pay if the arrangement had not been made.