Training Guarantee (Administration)
Amendment Act 1992
No. 79 of 1992
An Act to amend the Training Guarantee (Administration) Act 1990, and for related purposes
[Assented to 26 June 1992]
The Parliament of Australia enacts:
Short title etc.
1.(1) This Act may be cited as the Training Guarantee (Administration) Amendment Act 1992.
(2) In this Act, “Principal Act” means the Training Guarantee (Administration) Act 19901.
Commencement
2. This Act commences on the day on which it receives the Royal Assent.
Interpretation
3. Section 4 of the Principal Act is amended:
(a) by omitting “and” from paragraph (d) of the definition of “person”;
(b) by omitting paragraph (e) from the definition of “person”.
4. After section 11B of the Principal Act the following section is inserted:
Treatment of trustees
“11C.(1) If a person is a trustee under one or more trusts, then, for the purposes of the application of this Act to the trustee, the trustee is to be taken to be a separate person in relation to each trust.
“(2) A reference in this section to this Act includes a reference to Part III of the Taxation Administration Act 1953, in so far as that Part relates to this Act.”.
Meaning of eligible training expenditure
5. Section 25 of the Principal Act is amended by inserting after subsection (1) the following subsection:
“(1A) For the purposes of subsection (1), expenditure is incurred only if the goods or services to which the expenditure relates are provided within the period that:
(a) begins on the day on which an agreement relating to the provision of the goods or services is made; and
(b) ends:
(i) 13 months after the beginning of the period; or
(ii) on such later day as the Commissioner allows in writing.”.
Examples of eligible training expenditure
6. Section 26 of the Principal Act is amended by inserting after subsection (2) the following subsection:
“(2A) For the purposes of paragraph (1)(c), the amount of expenditure incurred by an employer for travel for an employee or other person where the travel is by means of a prescribed motor vehicle is the amount worked out by multiplying the number of kilometres so travelled by the prescribed rate.”.
Meaning of eligible training program
7. Section 27 of the Principal Act is amended by omitting “A training program” from subsection (1) and substituting “Subject to section 27A, a training program”.
8. After section 27 of the Principal Act the following section is inserted:
Meaning of eligible training program—work experience etc. for students and teachers
“27A.(1) A period of work experience, generally supervised practice or closely supervised practice for a student as part of the student’s course at:
(a) a higher education institution, a technical and further education institution or a school; or
(b) any other training institution which is registered under a law of a State or Territory relating to the provision of training;
is an eligible training program if the student is:
(c) undertaking the course on a full-time basis; and
(d) the course, whether in New South Wales or another State or Territory, is a course at or above the level of a Year 10 course in New South Wales or an equivalent course in another State or Territory; and
(e) under 21 when the work experience or practice is undertaken.
“(2) A period of work experience, generally supervised practice or closely supervised practice for a teacher at:
(a) a higher education institution, a technical and further education institution or a school; or
(b) any other training institution which is registered under a law of a State or Territory relating to the provision of training;
is an eligible training program if:
(c) there is an agreement between the teacher and the training institution referred to in paragraph (a) or (b) at which the teacher was employed immediately before undertaking work experience or practice that specifies the terms and conditions under which the teacher may undertake work experience practice; and
(d) there is an agreement between the training institution referred to in paragraph (a) or (b) and the provider of work experience or practice (‘work experience agreement’) that specifies:
(i) the nature of the work experience or practice; and
(ii) the expected outcomes from the work experience or practice; and
(e) the teacher is a full-time employee of the training institution referred to in paragraph (a) or (b) at the time the work experience agreement was made.”.
Application
9. The amendments made by this Act apply to assessments of, and other matters relating to, training guarantee charge for the year commencing on 1 July 1992 and for each subsequent year.
NOTE
1. No. 60, 1990, as amended. For previous amendments, see Nos. 111 and 216, 1991.
[Minister’s second reading speech made in—
House of Representatives on 30 April 1992
Senate on 7 May 1992]
Overview
The Training Guarantee (Administration) Amendment Act 1992, enacted by the Parliament of Australia and assented to on 26 June 1992, was introduced to amend the Training Guarantee (Administration) Act 1990. The primary objective of this amendment was to refine and clarify certain definitions and provisions within the original Act, ensuring a more precise application of the training guarantee charge. The Act specifically addresses the treatment of trustees, the meaning of eligible training expenditure, and the criteria for eligible training programs, particularly for students and teachers. By making these amendments, the Act aims to better align the administration of training guarantees with the evolving needs of educational and training institutions, thereby supporting the overarching policy goal of enhancing vocational training and education outcomes.
Scope and Application
The Training Guarantee (Administration) Amendment Act 1992 amends the Training Guarantee (Administration) Act 1990 to alter the scope and application of the training guarantee charge for employers. The Act applies to employers who are liable for the training guarantee charge, which includes any entity or individual who employs staff and is subject to the provisions of the Principal Act. The amendments, particularly concerning the definition of “person” and the treatment of trustees, ensure that trustees are treated as separate entities for the purposes of the Act, which broadens its application to more nuanced employer structures. Geographically, the Act applies nationally, with its provisions extending across all states and territories of Australia. However, the Act does not explicitly exclude any specific entities or types of expenditure from its application. Instead, it provides detailed criteria for what constitutes eligible training expenditure and programs, thereby indirectly excluding certain types of activities that do not meet these criteria. The Act also incorporates amendments to subordinate instruments, ensuring that the changes are reflected in related administrative procedures and obligations.
Key Provisions
The Training Guarantee (Administration) Amendment Act 1992 amends the Training Guarantee (Administration) Act 1990, introducing several significant changes. Firstly, Section 4 of the Principal Act is amended to adjust the definition of "person," removing specific references to trustees and ensuring clarity in application. Section 11C introduces a new provision that treats trustees as separate persons for each trust they administer under this Act, including its application to Part III of the Taxation Administration Act 1953. Section 25 is further amended in subsection (1A) to clarify that expenditure is incurred only if goods or services are provided within a specified period starting from the agreement date and ending 13 months later or later if the Commissioner permits. Eligible training expenditure is further detailed in Section 26, with subsection (2A) specifying the method of calculating expenditure for travel using prescribed motor vehicles.
The Act also expands the definition of eligible training programs. Section 27 modifies the definition to include subject clauses, while Section 27A introduces new criteria for eligible training programs involving work experience or practice for students and teachers. This includes full-time students under 21 years old participating in courses at or above Year 10 level and teachers with specified agreements for work experience or practice. The application of these amendments, as outlined in Section 9, pertains to assessments and other matters relating to the training guarantee charge starting from the year commencing 1 July 1992.
The obligations imposed by the Act require trustees to be treated as separate entities for each trust they manage, ensuring distinct application of the Act to each trust. Employers must ensure that expenditure on eligible training activities occurs within the stipulated timeframe. Training institutions must enter into specific agreements for students and teachers participating in work experience or practice, detailing terms and conditions and expected outcomes. These obligations ensure that the provisions of the Act are properly adhered to, maintaining the integrity of the training guarantee charge system.
Breaches of the obligations and requirements imposed by the Act could lead to civil or criminal consequences. While specific offences and penalties are not detailed in the provided excerpt, breaches of legislative requirements typically result in penalties that could include fines and other administrative actions. The maximum penalties for such breaches would be determined by the relevant provisions of the Training Guarantee (Administration) Act 1990 and other related laws. Compliance with the Act is essential to avoid these consequences and to maintain the effectiveness of the training guarantee charge system.