Exempt employees

Apprentices

Wages you pay to an apprentice under the Vocational Education, Training and Employment Act 2000 are exempt if they are paid in the course of the apprenticeship.

Trainees

Trainee wages are exempt if they are paid in the employee’s capacity as a trainee under the Vocational Education, Training and Employment Act 2000.

However, if the employee has been working for you for 3 months or more full time, 12 months or more part time or casually before their traineeship with you started, their wages under the traineeship are taxable.

However their wages will still be exempt if they are completing a certificate III qualification within a year of their certificate II qualification, as part of the same training package.

Anti-avoidance provisions apply.

Community Development Employment Project employees

This program provides unemployed Indigenous people outside major urban and regional centres with activities to develop skills that will help them to gain employment outside the Community Development and Employment Project.

Wages you pay an employee under this program on or after 1 July 2008 are exempt.

For further information, contact the Department of Families, Housing, Community Services and Indigenous Affairs.

Related exemptions

See s.14 of the Payroll Tax Act 1971 for other exemptions, or visit:

• relevant contracts 
• employment agents.