Commonwealth Numbered Regulations - Explanatory Statements

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TRAINING GUARANTEE (ADMINISTRATION) REGULATION (AMENDMENT) 1993 NO. 366

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.