Exempt employees

Generally, an apprentice is a person who is trained in a skilled trade and will, on completing training, become a qualified tradesperson (e.g. electrician, plumber, cabinet-maker, auto mechanic).

Exempt wages

Wages paid to apprentices are exempt if:

• the apprentice is registered under the VET Act
  
  and
  
  
• they are paid in the course of the apprenticeship.

Non-exempt wages

Wages paid to apprentices are not exempt if:

• they are for periods before or after the apprenticeship
• they are for roles or duties other than those specified in the apprentice contract (where the apprentice has multiple roles or duties)
• the training contract is rejected by the council at any time after it is signed.

Example

Peter is employed by Goodbake Pty Ltd as an apprentice pastrychef. To make some extra money, he works in the Goodbake store as a retail assistant every second weekend. As working in the shopfront does not form part of his normal apprenticeship duties, any wages paid to Peter while working in this role are not exempt.

Generally, a trainee is a person who:

• is trained in a vocational area (e.g. office administration, information technology, hospitality)
  
  and
  
  
• on completing their traineeship, will receive a Certificate II or above in their chosen vocational area.

Exempt wages

Wages paid to trainees are exempt if all of the following apply:

• the trainee is registered under the VET Act
• the wages are paid in the employee’s capacity as a trainee
• before the traineeship started, the trainee had not been employed by the employer for
  • 3 months or more (full time)
  • 12 months or more (part time or casual).

Note: The 3- and 12-month time limits only apply if the pre-traineeship employment is for a continuous period. Weekends are not considered to be a break in the continuous period of employment.

Wages paid to trainees doing subsequent training are not exempt. The only exception is if a trainee starts a Certificate III traineeship within 12 months after completing a Certificate II qualification within the same training package or occupational stream.

Non-exempt wages

Wages paid to trainees are not exempt if:

• they are for periods before or after the traineeship
• they are for roles or duties other than those specified in the trainee contract (where the trainee has multiple roles or duties)
• the training contract is rejected by the council at any time after it is signed.

Anti-avoidance provisions apply.

Example

Donna is employed by InfoTech Pty Ltd as a trainee Technical Support Officer. During peak periods, Donna works overtime in InfoTech's office, handing general reception and filing duties. As these duties do not form part of her IT traineeship, any wages paid to Donna while working in this role are not exempt.

Wages paid by the following employers may be exempt in certain circumstances:

• Governor of a State
• public hospital
• charitable institution 
• teacher's training college
• local government
• Commonwealth War Graves Commission
• Australian-American Educational Foundation
• a consular or other non-Australian government representative.

Wages paid to the following employees may also be exempt:

• member of the Commonwealth defence force
• volunteer member of a rural fire brigade
• volunteer member of the State Emergency Service
• honorary ambulance officer
• Aboriginal or Torres Strait Islander employed under the Community Development Employment Project.

See section 14 of the Payroll Tax Act 1971 for more information.