Training Guarantee Determination

TGD 93/3

Training guarantee: when a company acquires a subsidiary during the year and elects to include that subsidiary as part of the company group, is the subsidiary's total payroll for the year included in the calculation of the group's annual national payroll?

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FOI status:

1. Yes. Section 12 of the Training Guarantee (Administration) Act, 1990 allows two or more employers, who are members of a business group, to elect to have themselves treated as a single employer. The election applies for the whole financial year.

2. Corporations will be members of a business group if they are related to each other at 30 June in a year.

3. If a related corporation elects to be included as a member of a business group, it will be considered part of the business group for the full year. Therefore the total salary or wages paid by the subsidiary during the year will form part of the group's total annual national payroll.

4. Similarly total net eligible training expenditure incurred by the subsidiary during the year can be offset against the group's training guarantee obligation for the year.

Commissioner of Taxation
25/2/93

References

ATO references:
NO ALB/TG/TGR2

Subject References:
annual national payroll,
business group,
corporations,
election to group,
related compamies,
subsidiary

Legislative References:
TGAA Section 4 &
12