The South Australian Government has announced it will abolish the payroll tax exception for apprentices and trainees, while re-targeting support directly to registered group training organisations.


The abolition of the exemptions will save the Government an estimated $120.4 million over four years, while the direct funding to support training in critical areas will cost $48.1 over the same period.


“Payroll tax does not appear to be a critical factor in the decision to employ apprentices and trainees for the majority of employers,” Treasurer Jack Snelling said.


“Instead funding will be targeted to encourage organisations to employ apprentices and trainees undertaking qualifications which are of strategic importance to the State.”


Mr Snelling said the direct funding in the form of Government grants allow for a more targeting support of training organisations.


The Department of Further Education, Employment, Science and Technology will administer the grants.