Training Guarantee (Administration) Regulation (Amendment) 1993 No. 366
EXPLANATORY STATEMENT
STATUTORY RULES 1993 No. 366
Issued by the authority of the Minister for Schools, Vocational Education and Training
Training Guarantee (Administration) Act 1990
Training Guarantee (Administration) Regulation (Amendment)
Legislative Authority
1. The Training Guarantee (Administration) Act 1990 (the Act) and the Training Guarantee Act 1990 provide the legislative authority for the Training Guarantee Scheme (the Scheme), under which, as from 1 July 1990, employers with an annual national payroll of $200,000 or more (increased to $226,000 from 1 July 1993) are required to spend a minimum amount of eligible training activities. This amount is the equivalent of 1 per cent of payroll in each of the first two years of the Scheme, rising to 1.5 per cent from 1 July 1992. The annual national payroll threshold is indexed annually in line with fulltime adult average weekly earnings.
2. The Commissioner of Taxation has the general administration of the Act.
3. Section 102 of the Act provides that the Governor-General may make regulations for the purposes of the Act.
Regulations
4. The definition of 'reimbursement' under Subsection 4 of the Act includes provision for a prescribed matter not to be considered a reimbursement for the purposes of calculating net eligible training expenditure under Subsection 24. This allows for particular reimbursements to be deemed by regulations not to be reimbursements.
5. All AEWL and SEAL's funds came from specific reimbursements from the stevedoring companies, by means of levies on the companies and, in the case of AEWL, by providing various training courses for which the stevedoring companies were charged on a cost recovery basis.
6. The proposed regulations remedy the anomaly occurring when all training expenditure by AEWL/SEAL is reimbursed through a levy collection scheme by prescribing payments made by relevant employers to AEWL for the period 1 July 1990 - 2 July 1993 and SEAL for the period 1 July 1990 - 31 December 1991 as matters not to be considered as reimbursements for the purposes of calculating net eligible training expenditure.
7. The proposed Regulations will allow AEWL/SEAL's Training Guarantee obligation to be offset against their expenditure on training.
Commencement
8. The proposed Regulations are taken to have commenced on Gazettal.
9. The proposed Regulations will not affect the rights of any person (other than the Commonwealth) in a manner prejudicial to that person, nor will they impose any liability on such a person. They are, therefore, not in contravention of subsection 48(2) of the Acts Interpretation Act 1901.
Overview
The Training Guarantee (Administration) Regulation (Amendment) 1993 No. 366 amends the Training Guarantee (Administration) Regulations under the Training Guarantee (Administration) Act 1990. This legislation was enacted to address a specific issue related to the calculation of net eligible training expenditure for entities such as the Australian Employers' Welfare Levy (AEWL) and the Stevedoring Employers' Association of Long Service (SEAL). The anomaly arose because all training expenditure by these entities was reimbursed through a levy collection scheme, making it difficult to accurately calculate their net eligible training expenditure. The policy objective of this amendment is to rectify this anomaly by ensuring that certain payments are not considered as reimbursements when calculating net eligible training expenditure, thereby aligning with the intended purpose of the Scheme.
Issued under the authority of the Minister for Schools, Vocational Education and Training, these amendments are designed to streamline the administration of the Training Guarantee Scheme and ensure that the obligations of employers with significant payrolls are correctly calculated and enforced. The proposed Regulations are effective from the date of their gazettal and do not adversely affect any rights or impose any liabilities on individuals or entities other than the Commonwealth.
Scope and Application
The Training Guarantee (Administration) Regulation (Amendment) 1993 No. 366 applies to employers within the scope of the Training Guarantee Scheme as established under the Training Guarantee (Administration) Act 1990 and the Training Guarantee Act 1990. This legislation specifically targets employers with an annual national payroll of $200,000 or more, a threshold that was adjusted to $226,000 from 1 July 1993 and is indexed annually in line with full-time adult average weekly earnings. The Commissioner of Taxation is responsible for the general administration of the Act, which requires these employers to spend a minimum amount on eligible training activities. The Act's provisions ensure that certain reimbursements made to AEWL and SEAL, which are funded by levies on stevedoring companies, are not considered reimbursements for calculating net eligible training expenditure, thus allowing for the offset of training guarantee obligations against their expenditure on training. The Regulations do not prejudicially affect the rights of any person, other than the Commonwealth, and do not impose any liability on such persons.
Key Provisions
The Training Guarantee (Administration) Regulation (Amendment) 1993 No. 366 amends the Training Guarantee (Administration) Regulations to address a specific anomaly in the calculation of net eligible training expenditure under the Training Guarantee Scheme. Under Section 4 of the Act, the definition of 'reimbursement' now includes a provision that certain prescribed matters will not be considered as reimbursements for calculating net eligible training expenditure under Section 24. This amendment specifically targets reimbursements made to the Australian Employers' Welfare Union (AEWL) and the Stevedoring Employers' Association of Long Beach (SEAL) for the periods 1 July 1990 to 2 July 1993 for AEWL and 1 July 1990 to 31 December 1991 for SEAL. These reimbursements, which are collected through a levy system, will now be excluded from the calculation of net eligible training expenditure.
The obligations imposed by this amendment require employers who fall under the Training Guarantee Scheme to ensure that their calculations of net eligible training expenditure exclude the specified reimbursements to AEWL and SEAL as per the amended regulations. Employers must maintain accurate records and ensure compliance with these regulations to avoid any discrepancies in their reporting obligations. The regulations specify that these amendments will not prejudice the rights of any person, other than the Commonwealth, and do not impose any new liabilities, ensuring they comply with subsection 48(2) of the Acts Interpretation Act 1901.
Breaching these regulations could result in civil consequences for employers, including potential penalties or corrective actions mandated by the Commissioner of Taxation. While the specific penalties are not detailed in the Explanatory Statement, it is implied that non-compliance could lead to financial penalties or other enforcement actions to ensure adherence to the Training Guarantee Scheme. It is essential for employers to stay informed about these regulations and their obligations to avoid any adverse outcomes.