Document ID: chunk:federal_register_of_legislation:C2004A04733:body:0:p6
Version: federal_register_of_legislation:C2004A04733
Segment Type: other
Provision Reference: 
Character Range: 12872–15614

the postponed shortfall is reduced, or further reduced, as the case requires, to 0; and

  (b) the excess is reduced by the amount of the postponed shortfall.

"(6) If the training guarantee excess in year 3 is less than the postponed shortfall:

    (a) the postponed shortfall is reduced, or further reduced, by the amount of the excess; and

    (b) training guarantee charge is payable on the postponed shortfall as so reduced or further reduced; and

  (c) the excess is reduced to 0.

"(7) Subject to section 74, training guarantee charge that is payable under this section is taken to have become due and payable on the day ('the original due date') when training guarantee charge on the postponed shortfall would have become due and payable apart from this section.

   Note: Because of this subsection, an employer will be liable to penalties, calculated from the original due date, in so far as the postponed shortfall is not eliminated by a training guarantee excess in either or both of year 2 and year 3.

"(8) For the purposes of this section, if training guarantee charge is not payable by the employer for year 2 or year 3 because of section 16, 17, 18 or 18A, the employer is taken to have a training guarantee excess in that year equal to the employer's net eligible training expenditure in that year.

"(9) This section does not affect the employer's obligation to lodge a training guarantee statement.".

Exemption for outstanding trainers

9. Section 18A of the Principal Act is amended by omitting subsection (4) and substituting the following subsection:

  "(4) The regulations may provide:

     (a) for 2 or more entities to elect to have themselves treated as a single employer, in relation to a year or a 3-year period, for the purposes of this section and the regulations in force for the purposes of this section; and

  (b) for the effects of such an election.".

Meaning of net eligible training expenditure

  10. Section 24 of the Principal Act is amended:

  (a) by omitting from subsection (1) "subsidies and"; and

     (b) by omitting from subsection (3) "subsidies and" (wherever occurring).

Examples of eligible training expenditure

  11. Section 26 of the Principal Act is amended:

     (a) by omitting paragraphs (1)(j) and (k) and substituting the following paragraphs:

        "(j) expenditure incurred by the employer by way of rent that was paid for a building and is directly attributable to a period during which the building was used solely or principally for the purpose of engaging in an activity referred to in paragraph 25(2)(a), (b), (c) or (d); and

        (k) expenditure that was incurred by the employer in relation to hiring or leasing equipment and is directly attributable to