Training Guarantee (Outstanding Trainer) Regulations (Amendment) 1992 No.
322
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 322
Issued by the authority of the Minister for Employment, Education and Training
Training Guarantee (Administration) Act 1990
Training Guarantee (Outstanding Trainer) 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, under which, from 1 July 1990, employers with an annual payroll at or above the threshold (currently $222,000) are required to spend a minimum amount on eligible training activities. This amount rose to 1.5% of payroll from 1 July 1992. Employers who do not incur this expenditure are liable to a Training Guarantee charge.
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.
Outstanding Trainer Regulations
4. Section 18A of the Act provides that the training guarantee charge is not payable by an employer if, under regulations, the employer is taken to be an eligible outstanding trainer. The administering agent for this provision is the Department of Employment, Education and Training.
Regulations
5. Proposed regulations 4 and 5 ensure that the expenditure compliance certificate signed by a registered company auditor must refer to the eligible training programs identified in the training compliance certificate. This clarifies the requirement that the training compliance certificate must be completed before the expenditure compliance certificate and the expenditure referred to thereon must be on those eligible training programs.
6. New sub-regulation 9(4) requires that the allowable expenditure is net of any training subsidies or reimbursements and that, in the case of an employer of apprentices or trainees, the actual net costs of training the apprentices or trainees are included. The deemed costs of training apprentices which are accepted for normal Training Guarantee purposes are not accepted for Outstanding Trainer Status purposes.
7. Proposed regulations 6 to 8 provide that the chief officer of an employer with outstanding trainer status may have a reasonable excuse for not advising the Secretary of the Department of a change in the employer's circumstances within 30 days or for not complying with a request to show cause within 30 days why outstanding trainer status should not be revoked.
8. Proposed regulation 7 also inserts a new Regulation 15A which provides that if the chief officer does give notice, the employer must be given the chance to show cause why the outstanding trainer status should not be revoked. Previously the decision maker could revoke the status without referring to the employer.
Notes on Regulations
9. Proposed regulation 1 allows for the existing Training Guarantee (Outstanding Trainer) Regulations to be amended by the proposed Training Guarantee (Outstanding Trainer) Regulations (Amendment).
10. Proposed regulation 2 inserts into the old Regulation 3 definitions of expenditure compliance certificates and training compliance certificates Expenditure compliance certificates are those to be completed by a registered company auditor in accordance with the amended Regulation 9. Training compliance certificates are those to be completed by an industry training agent or a training consultative committee in accordance with the amended Regulation 8.
11. Proposed regulation 3 requires that an expenditure compliance certificate and a training compliance certificate accompany an application for outstanding trainer status.
12. Proposed regulation 4 amends Regulation 8 by deleting it and replacing it with a new one. This continues the use of the terms "expenditure compliance certificates" and "training compliance certificates".
13. Proposed regulation 5 amends the old Regulation 9. This has the effect of requiring that the expenditure referred to on the expenditure compliance certificate relates to the eligible training programs referred to on the training compliance certificate.
14. A further effect of the amendment to Regulation 9 is that training subsidies and reimbursements must now be deducted from the expenditure on the eligible training programs.
15. For employers of apprentices or trainees, the amendment to Regulation 9 will mean that, for outstanding trainer status purposes, they do not have the option of claiming the deemed apprentice or trainee amount. This means that only actual net expenditure on the training of apprentices or trainees can be counted for outstanding trainer status.
Commencement
16. The proposed regulations commence on gazettal.
Overview
The Training Guarantee (Outstanding Trainer) Regulations (Amendment) 1992 No. 322 was introduced to amend the existing Training Guarantee (Outstanding Trainer) Regulations under the Training Guarantee (Administration) Act 1990. Enacted by the Parliament of Australia, this amendment was issued by the authority of the Minister for Employment, Education and Training, with the Commissioner of Taxation having the general administration of the Act. The primary objective of this amendment is to refine the eligibility criteria for employers to be classified as outstanding trainers, ensuring that the expenditure compliance certificate accurately reflects the eligible training programs and to provide more clarity and fairness in the application process for outstanding trainer status. The regulation seeks to ensure that employers who genuinely invest in training are appropriately recognised while maintaining the integrity and purpose of the Training Guarantee Scheme.
Scope and Application
The Training Guarantee (Outstanding Trainer) Regulations (Amendment) 1992 No. 322 amends the existing regulations under the Training Guarantee (Administration) Act 1990 to refine the criteria and procedures for determining eligibility for outstanding trainer status. This status exempts certain employers from the Training Guarantee charge, which applies to employers with an annual payroll of $222,000 or more who must spend a minimum on eligible training activities. The regulations apply to employers seeking to be recognised as outstanding trainers and are administered by the Department of Employment, Education and Training. The amendments introduce clarity in the relationship between expenditure compliance certificates and training compliance certificates, ensuring that any expenditure claimed must pertain to the eligible training programs identified. Additionally, the allowable expenditure must now be net of any training subsidies or reimbursements, and for employers of apprentices or trainees, the actual net costs of training are to be included. The regulations also provide a mechanism for employers to challenge a decision to revoke their outstanding trainer status, ensuring procedural fairness. These changes are intended to align the administration of outstanding trainer status with the overarching objectives of the Training Guarantee Scheme, facilitating compliance and accurate reporting of training expenditures.
Key Provisions
The Training Guarantee (Outstanding Trainer) Regulations (Amendment) 1992 No. 322 amends the existing regulations under the Training Guarantee (Administration) Act 1990. Key provisions include the clarification of the relationship between expenditure compliance certificates and training compliance certificates (Regulations 4 and 5). Regulation 4 mandates that the expenditure compliance certificate signed by a registered company auditor must pertain to the eligible training programs identified in the training compliance certificate. Regulation 5 further clarifies that the training compliance certificate must be completed before the expenditure compliance certificate, and the expenditure referred to must be on those eligible training programs. Additionally, Regulation 9(4) specifies that allowable expenditure must be net of any training subsidies or reimbursements, and for employers of apprentices or trainees, the actual net costs of training must be included.
Under these regulations, employers with outstanding trainer status must adhere to several obligations. They must ensure that expenditure compliance certificates and training compliance certificates are completed and submitted with their application for outstanding trainer status (Regulation 3). Furthermore, the chief officer of an employer with outstanding trainer status may have a reasonable excuse for not advising the Secretary of the Department of a change in the employer's circumstances within 30 days or for not complying with a request to show cause within 30 days why outstanding trainer status should not be revoked (Regulations 6 to 8). If the chief officer does give notice, the employer must be given the opportunity to show cause why the outstanding trainer status should not be revoked (Regulation 15A).
Failure to comply with these regulations may result in civil or criminal consequences. Although specific offences, penalties, or consequences are not detailed in the explanatory statement, non-compliance with the Training Guarantee charge provisions under the Training Guarantee (Administration) Act 1990 could lead to financial penalties or other administrative actions. The regulations ensure that employers who do not incur the required expenditure on eligible training activities are liable to a Training Guarantee charge. The explanatory statement does not provide details on the maximum penalties for breach, but it is clear that adherence to the regulations is essential to avoid potential liabilities.