About this programme
The apprentice and new entrant trainee payroll tax rebate is a standing feature of NSW payroll tax, administered by Revenue NSW. Wages paid to apprentices and trainees are taxable wages like any other employee wages, but an employer that pays them can claim a rebate against its payroll tax liability for the eligible period the apprentice or trainee is registered in their training.
The rebate exists alongside a separate, narrower relief: non-profit Group Training Organisations (GTOs) approved by Training Services NSW can receive a full payroll tax exemption on all wages they pay, including apprentices, trainees and administrative staff. That exemption is reviewed by Revenue NSW every three years and is only available to the GTO itself, not to the host businesses the GTO places workers with.
This is a self-assessed payroll tax mechanism, not a grant: there is no separate application form or approval process to claim the standard rebate. An employer calculates and claims it directly through its own payroll tax return, using the 'apprentice and trainee wages' field built into the Revenue NSW monthly calculator and annual reconciliation.
How it works
Apprentice wages: the rebate applies to wages paid to a person while they are an apprentice approved and registered by Training Services NSW (TSN), covering wages paid for the full duration of the registered apprenticeship.
Trainee wages: the rebate applies only to wages paid to a "new entrant trainee" as classified by TSN — a trainee who did not already work for the employer, or whose employment with the employer was in a different, unrelated role before starting the traineeship. Wages paid to an "existing worker trainee" do not qualify.
Eligible period: the rebate can be claimed on wages paid from the commencement date of the apprentice or trainee's registered training course through to the date the course is completed or cancelled — wages paid outside that registered period do not qualify, even for the same worker.
Rebate scope: the rebate applies to all remuneration paid to the eligible apprentice or trainee that would otherwise count as taxable wages — base salary and wages, superannuation (both employer contributions and salary sacrifice), fringe benefits, taxable allowances, bonuses, commissions and termination payments — not base salary alone.
Claiming mechanism: employers report the total wages paid to eligible apprentices/trainees during the eligible period in the dedicated apprentice-and-trainee-wages field of the Monthly Payroll Tax Calculator and the annual return; the calculator applies the rebate automatically against gross payroll tax liability once that figure is entered correctly.
Group Training Organisations: where an apprentice or trainee is employed by a GTO and placed with a host employer, only the GTO — as the actual employer paying the wages — can claim the rebate. The host business the apprentice or trainee is placed with is not entitled to claim it.
Interstate wages: if the same apprentice/trainee wages are treated as exempt under another state or territory's payroll tax law, those wages are excluded from NSW interstate wages for threshold purposes; if another state instead offers a rebate (rather than an exemption), those wages are included in NSW interstate wages for calculating the tax-free threshold.
Who can apply
Any employer liable for NSW payroll tax that employs a person as an apprentice registered and approved by Training Services NSW can claim the rebate on that apprentice's wages for the registered duration of the apprenticeship.
Any employer liable for NSW payroll tax that employs a person as a "new entrant trainee" — as classified by Training Services NSW, meaning the trainee is new to the employer or moving into a genuinely different role — can claim the rebate on that trainee's wages during the registered training period. Trainees classified as "existing worker trainees" are not eligible.
Non-profit Group Training Organisations that hold a current approval from Revenue NSW can instead claim a full payroll tax exemption on all wages they pay (not limited to apprentices and trainees); this exemption is reviewed every three years and sits apart from the standard rebate available to other employers.
How to apply
- There is no separate rebate application — the employer's own apprentice/trainee registration with Training Services NSW is the qualifying event, and TSN's classification of a trainee as "new entrant" or "existing worker" determines eligibility.
- When lodging a monthly payroll tax return, enter the total wages paid during the month to eligible apprentices and new entrant trainees in the dedicated apprentice-and-trainee-wages field of the Monthly Payroll Tax Calculator; the calculator applies the rebate against gross liability.
- Repeat the same reporting in the annual reconciliation return, so the full-year rebate is reconciled against the wages actually declared.
- Non-profit GTOs seeking the full wages exemption apply for and maintain approval directly with Revenue NSW, which is reviewed on a three-yearly cycle.
Documents you’ll typically need
- Training Services NSW approval/registration record confirming the apprenticeship, or TSN's classification of the trainee as a "new entrant trainee"
- Payroll records showing how the apprentice/trainee wage figures reported in each return were calculated, covering salary, superannuation, fringe benefits, allowances, bonuses and commissions paid to that worker
- Records must be kept for at least five years, in English or a form that can be readily translated, and available on request for a payroll tax audit
Frequently asked
Is this a tax exemption or a tax rebate?
For most employers it is a rebate, not an exemption: wages paid to eligible apprentices and new entrant trainees are still declared as taxable wages, and the rebate is then calculated and deducted from the employer's gross payroll tax liability. A full exemption on all wages (not just apprentices/trainees) is available separately, but only to non-profit Group Training Organisations approved by Revenue NSW.
Do existing employees who move into a traineeship qualify?
Only if Training Services NSW classifies them as a "new entrant trainee" — broadly, someone new to the employer or moving into a genuinely different role. Workers classified as "existing worker trainees" do not qualify for the rebate.
Does the rebate cover superannuation and bonuses, or just base wages?
It covers the full range of remuneration that counts as taxable wages for the apprentice or trainee, not base salary alone — including superannuation (employer contributions and salary sacrifice), fringe benefits, taxable allowances, bonuses, commissions and termination payments paid during the eligible period.
For how long can we claim the rebate on a given apprentice or trainee?
From the date their registered training course with Training Services NSW commences through to the date it is completed or cancelled. Wages paid to the same person outside that registered period are not eligible, even if their job title is unchanged.
We use a Group Training Organisation — who claims the rebate, us or the GTO?
Only the GTO, because it is the actual employer paying the apprentice or trainee's wages. A host business that the GTO places an apprentice or trainee with is not entitled to claim the rebate on those wages.
Do we need to submit a separate application to Revenue NSW to claim this?
No. There is no separate rebate application process for the standard rebate — you report eligible apprentice/trainee wages in the dedicated field of the Monthly Payroll Tax Calculator and the annual return, and the rebate is calculated automatically. The Training Services NSW registration is what makes the wages eligible in the first place.
What records do we need to keep to support a rebate claim?
Records sufficient for Revenue NSW to properly assess the payroll tax liability, including how the apprentice/trainee wage figures were calculated, kept for at least five years in English or an easily-translated form, and available for audit on request.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.