Payroll Tax Exemptions

WA Traineeship and the Payroll Tax Exemption

Every eligible employee a business supports on a traineeship in Western Australia has the opportunity to benefit from payroll tax exemption.

Potentially for up to two years the employer could save the payroll tax of 5.5% for the duration of the training. As a supporting business you could achieve enough saving to cover the cost of training which means everyone gains; the employee up skills and the company profits from a qualified competent workforce.


For an employee earning $75,000, and based on the Payroll Tax in Western Australia of 5.5%, your business could save $4,125 in Payroll Tax Exemptions for each year that the trainee is undertakes the Traineeship.

Please click on the link below for detailed information about Payroll Tax Exemptions for Trainees in Western Australia:

In order to qualify for exemptions, 3 criteria must now be met:

  • The employee must be an apprentice/Trainee, and
  • There must be a training contract in place, and
  • The contract must be registered.

Claiming Payroll Tax for Apprentices and Trainees

Employers are required to include the wages and salaries paid to apprentices and new entrant trainees in their payroll tax calculation. The Office of State Revenue allows the rebate amount to be calculated and offset against both the monthly payroll tax and annual reconciliation calculation. This offset facility is provided through the Office of State Revenue online service. If you use your own software or a commercial package such as MYOB to calculate your monthly payment you have the option of either determining your own monthly offset or claiming the offset at the end of the financial year.

For further information on eligibility go to;

Previous Changes to Pay Roll Tax

“Apprentice” means a person who is named in a training contract as the person who will be trained under the contract whether the person is termed an apprentice, trainee, cadet, intern or some other term. As a “trainee” falls within the definition of “apprentice”, the exemption for trainees still applies.

As a minimum to qualify you must be;

  • A trainee or apprentice
  • Named in a registered training contract

The Training Contract

The training contract forms a legally binding agreement between an employer and employee for the training of Apprentices and Trainees leading to a nationally recognised qualification. In signing this contract the parties are bound by the obligations and the legislation of the State or Territory in which this training contract is to be registered.

For further information on Australian Apprenticeships Centres in your region you can phone 13 38 73 or visit the Australian Apprenticeships website at


Call us on 1300 159 000 and discuss this opportunity with our L&D Coordinator