Training Guarantee (Administration) Regulations (Amendment) 1992 No.
295
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 295
Issued by the authority of the Minister for Employment, Education and Training
Training Guarantee (Administration) Act 1920
Training Guarantee (Administration) Regulations (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 $222,000 from 1 July 1992) are required to spend a minimum amount on 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 full-time 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 puwrposes of the Act.
Regulations
4. The Training Guarantee (Administration) Amendment Act 1992 amended the Act by inserting new subsection 26(2A) to make provision for an employer who wishes to claim as eligible expenditure under the scheme the use of a business motor vehicle to enable an employee or other person to attend an eligible training program.
5. The proposed amendments to the Training Guarantee (Administration) Regulations make implementing regulations for these new provisions by prescribing the per kilometre rate at which such travel may be claimed using a prescribed motor vehicle. A prescribed motor vehicle is a motor vehicle owned by the employer or for which the employer otherwise bears all operational and maintenance costs. The regulations are in line with current income tax provisions.
Commencement
6. The proposed Regulations are taken to have commenced on 1 July 1992.
7. 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, in accord with subsection 48(2) of the Acts Interpretation Act 1901.
Overview
The Training Guarantee (Administration) Regulations (Amendment) 1992 No. 295, issued under the authority of the Minister for Employment, Education and Training, was enacted to amend the Training Guarantee (Administration) Regulations 1990. These amendments address a specific gap identified by the Training Guarantee (Administration) Amendment Act 1992, which introduced provisions allowing employers to claim the use of a business motor vehicle for employee training as eligible expenditure under the Scheme. The objective of these regulations is to establish a per kilometre rate for such travel, aligning with existing income tax provisions, and ensuring that the new provisions are practical and consistent with current tax laws. This amendment aims to streamline the process for employers to claim legitimate training-related travel expenses while maintaining the integrity and purpose of the Training Guarantee Scheme.
Scope and Application
The Training Guarantee (Administration) Regulations (Amendment) 1992 No. 295, issued under the authority of the Minister for Employment, Education and Training, provides further regulation for the implementation of the Training Guarantee Scheme as outlined in the Training Guarantee (Administration) Act 1990. This legislation applies to employers with an annual national payroll of $222,000 or more, who are required to contribute a minimum percentage of their payroll towards eligible training activities. The Scheme's financial obligations increase over time, with the threshold for employer contributions being indexed annually in line with full-time adult average weekly earnings. The Act applies to employers across Australia and is administered by the Commissioner of Taxation. These regulations specifically address a new provision allowing employers to claim the use of a business motor vehicle for employee travel to eligible training programs as eligible expenditure. The amendments outline a per kilometre rate for such claims, aligning with current income tax provisions, and apply to vehicles owned by the employer or for which the employer bears all operational and maintenance costs. These regulations came into effect on 1 July 1992 and do not adversely affect the rights or impose any liabilities on individuals other than the Commonwealth.
Key Provisions
The Training Guarantee (Administration) Regulations (Amendment) 1992 No. 295, which amend the Training Guarantee (Administration) Regulations, introduce several key provisions under the Training Guarantee (Administration) Act 1990. The primary change, as outlined in the explanatory statement, is the inclusion of new subsection 26(2A) in the Act, which allows employers to claim as eligible expenditure the use of a business motor vehicle for employees or other persons to attend eligible training programs. This provision is intended to provide a more flexible approach to training by allowing employers to use their vehicles for this purpose. The new regulations specify the per kilometre rate at which such travel may be claimed, aligning with current income tax provisions. This is intended to ensure consistency in the treatment of such expenses under both the training guarantee scheme and income tax law (section 4).
The amendments impose specific obligations on employers who wish to take advantage of this provision. Employers must ensure that the motor vehicle used for the travel is a "prescribed motor vehicle," meaning the vehicle must either be owned by the employer or the employer must bear all operational and maintenance costs for the vehicle. This requirement ensures that the employer has full control and responsibility over the vehicle, thereby maintaining the integrity of the scheme (section 5). Additionally, employers must accurately calculate the allowable expense based on the prescribed per kilometre rate and maintain proper records to substantiate their claims, in line with the requirements of the Training Guarantee (Administration) Act.
Failure to comply with the provisions of the Training Guarantee (Administration) Regulations, including incorrectly claiming expenses or not maintaining the necessary records, may result in penalties. While the specific penalties are not detailed in the explanatory statement, generally, under the Act, non-compliance could lead to financial penalties or other enforcement actions by the Commissioner of Taxation. The precise consequences would depend on the nature and extent of the breach, but they may include fines or the requirement to repay any incorrectly claimed amounts. The regulations are designed to ensure that the training guarantee scheme operates fairly and efficiently, and penalties serve as a deterrent against misuse or non-compliance.