Training Guarantee (Wool Industry) Regulations (Amendment) 1992 No.
426
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 426
Issued by the authority of the Minister for Employment, Education and Training
Training Guarantee (Administration) Act 1990
Training Guarantee (Wool Industry) Regulations (Amendment)
Legislative Authority
2. 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.
Wool Industry Regulations
4. Section 4A of the Act provides that an employee who is taken to be covered by a recognised alternative training levy scheme (RATLS) is not an employee for the purposes of the Act. Salaries or wages paid to such persons are, therefore, not included in their employer's annual national payroll for the purposes of determining their training guarantee obligation.
5. Decisions as to whether a training levy scheme should be recognised are made by the Minister or his delegate in accordance with regulations detailing requirements for schemes in a particular industry.
6. The Wool Industry Regulations detail the requirements for the Australian Wool Corporation (AWC) Training Scheme to be a RATLS in a year. The main requirement is that, in the previous year, industry expenditure on training of wool industry workers (as defined) as a percentage of industry payroll is equal to or greater than the minimum training rate (1.5% for the 1992-93 financial year).
7. To gain recognition for a year, the AWC must provide estimates of three factors, the Contractor, Employer and Levy factors for the previous year.
8. Proposed Regulation 3 extends the meaning of Employer factor to include salaries, wages, course fees and other expenditure incurred by employers of wool industry employers which is directly attributable to those employees, attendance at courses run by technical and further education institutions. Figures to support this expenditure were not previously available and only expenditure relating to courses run by the AWC were previously included.
9. Proposed regulation 4 provides for the Minister to delegate his power to make (under regulation 9) or revoke (under regulation 14) a decision as to whether the AWC scheme is a RATLS in a year or to make decisions pertaining to the various circumstances which may affect the making of such a scheme decision. Previously only the decisions to grant or revoke RATLS status were delegated.
Notes on Regulations
10. Proposed regulation 1 allows for these regulations to take effect from 1 July 1991.
11. Proposed regulation 2 allows for the existing Training Guarantee (Wool Industry) Regulations to be amended by the proposed Training Guarantee (Wool Industry) Regulations (Amendment).
12. Proposed regulation 3 amends the old regulation 4 by deleting the definition of Employer factor and replacing it with a new one which has three parts (a),(b) and (c).
13. Part (a) has the effect of including in the Employer factor salaries or wages paid by an employer to wool industry workers participating in courses run by the AWC or by a technical and further education institution. Previously, only courses run by the AWC were included.
14. Part (b) has the effect of including in the Employer factor fees paid to a technical and further education institution for courses for wool industry workers. This can include fees for development of those courses. Previously, these fees were not included.
15. Part (c) has the effect of including in the Employer factor all other costs incurred by employers of wool industry workers which are directly attributable to attendance by wool industry workers at courses run by the AWC or by technical and further education institutions for wool industry workers. Previously, these costs were not included.
16. Proposed regulation 4 amends the old regulation 6 by deleting it and replacing it with a new one. This has the effect of allowing the Minister to delegate his authority to make decisions concerning situations which may arise during the gathering of the data by the AWC or their lodgement of the relevant documentation, or after granting of RATLS status for a year. Previously, only the power to grant or revoke RATLS status could be delegated.
17. New paragraph 6(1)(a) has the same effect as the old regulation 6 without identifying the persons to whom the power may be delegated.
18. New paragraph 6(1)(b) is in general terms to allow delegation of the power to make decisions in any situation which may arise but is drafted with the following decisions in mind
• a decision under sub-regulation 7(3) to extend the time for lodgement by the AWC of the documents showing estimates of the various factors;
• a decision under sub-regulation 8(3) to ask in writing for either a statement from the bodies representing the shearing contractors or an audit certificate certifying that the estimate of the Contractors' factor is reasonable;
• a decision under regulation 13 to request the AWC to show cause why RATLS status should not be revoked.
19. This new paragraph also requires the delegate, in the Minister's stead, to satisfy the requirement of subregulation 15(2) to include in a written request issued under sub-regulation 8(3) or written notice issued under regulation 9 or 14, a statement that the person is entitled to apply to the Administrative Appeals Tribunal for a review of the decision on which the request or notice is based.
20. New sub-regulation 6(2) identifies, by reference to the positions they fill, the persons to whom the power may be delegated.