Apprentice and trainee rebate for payroll tax
Find out how the rebate works and how it is calculated.
If your apprentice and trainee wages are exempt from payroll tax, you can also claim a payroll tax rebate that reduces your payroll tax amount for the particular liability (periodic, annual or final return).
A 50% rebate is available for each financial year from 1 July 2016 to 30 June 2026.
The rebate is automatically calculated when you enter your apprentice and trainee wages and lodge a return in QRO Online.
You can work out the rebate by multiplying 50% of the apprentice and trainee wages by the applicable payroll tax rate for each return period.
A Brisbane-based company’s payroll tax liability for January 2025 was $10,000. That month, it paid $50,000 in exempt apprentice/trainee wages.
- The initial payroll tax periodic liability (on all taxable wages) is $10,000.
- The incentive rebate is $1,187.50 (($50,000 × 50%) × 4.75%).
- The payroll tax periodic liability is $8,812.50 ($10,000 − $1,187.50).
The rebate reduces the employer’s monthly periodic liability by $1,187.50.
The maximum rebate you can claim in a return period is equal to your payroll tax amount for that liability.
All rebate records must be kept for 5 years.
Also consider…
- Find out about previous rebate amounts.
- Read about exemptions for contractors and employment agents.
- Learn about apprenticeships and traineeships.