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Thursday, 24 March 1994
Page: 2188

  Consideration resumed from 23 March.

  Schedule of the amendments made by the Senate disagreed to by the House of Representatives, but bill amended in place thereof

No. 1—Clause 6, page 4, paragraph (d), lines 15 to 18, omit the paragraph.

No. 2—Clause 8, page 5, proposed subsection 15B(1), line 7, omit "until the next year', substitute "for a designated period of years not exceeding a further two years'.

No. 3—Clause 8, page 5, at end of proposed section 15B(4), add "following the period designated in subsection (1)'.

No. 4—Clause 8, page 5, proposed section 15C(2), line 21, omit "the next year', substitute "a year in a period of years designated in subsection 15B(1)'.

No. 5—Clause 8, page 5, proposed section 15C(3), line 27, omit "the next year', substitute "a year in a period of years designated in subsection 15B(1)'.

No. 6—Clause 8, page 5, proposed section 15C(4), lines 37 and 38, omit "the next year', substitute "a year in a period of years designated in subsection 15B(1)'.

No. 7—Clause 8, page 6, proposed subsections 15C(6) and (7), lines 5 to 14, omit the subsections.

No. 8—Clause 16, page 8, proposed subsection 42A(1), line 31, omit "or (6)'.

No. 9—Clause 16, page 9, proposed subparagraph 42A(2)(d)(ii), lines 6 and 7, omit "the next year', substitute "a year in a period of years designated in subsection 15B(1)'.

  Amendments disagreed to, but, in place thereof, the following amendments made—

1.Clause 3, page 2, lines 7 to 10, omit paragraph 3(c), substitute the following paragraph:

    "(c)by omitting the definition of `training guarantee shortfall' and substituting the following definition:

    `"training guarantee shortfall" has the meaning given by sections 14 and 15BA;

    Note:Sections 15A and 15C provide for a training guarantee shortfall to be reduced in certain cases.';".

2.Clause 3, page 2, paragraph 3(d), after the definition of "business group" insert the following definition:

"`employer group', in relation to a year, means 2 or more entities in relation to which this Act applies, because of paragraph 12(3)(a), as if the entities were a single employer during that year;".

3.Clause 6, page 4, lines 15 to 18, omit paragraph 6(d).

4.Clause 7, page 4, at the end of proposed section 14A add the following subsection:

  "`(2) If, because of subsection (1), an employer group has a training guarantee excess ("the group excess") in a year, then, despite section

12 and that subsection, each member of the group has a training guarantee excess in that year that is worked out using the formula:

Member's annual national payroll

———————————————————— x Group excess

Employer group's annual national payroll

"Employer group's annual national payroll" means the total of the respective annual national payrolls for that year of the members of the group;

"Group excess" means the group excess;

"Member's annual national payroll" means that member's annual national payroll for that year.'.".

5.Clause 8, page 4, lines 23 to 36, page 5, lines 1 to 40, and page 6, lines 1 to 16, omit the clause, substitute the following clause:

"8. After section 15 of the Principal Act the following sections are inserted:

  Carry forward of training guarantee excess

    `15A.(1) This section applies if:

    (a)an employer (other than an employer group) has a training guarantee excess in a year ("year 1"), whether or not it has been reduced by section 15C; and

    (b)the employer has a training guarantee shortfall in the next year ("year 2"), whether or not it has been reduced by an earlier application of this section.

    `(2) This section also applies if:

    (a)an employer (other than an employer group) has a training guarantee excess in a year ("year 1"), whether or not it has been reduced by section 15C, an earlier application of this section, or both; and

    (b)the employer has a training guarantee shortfall in year 3 (the second year after year 1).

  `(3) If the training guarantee excess is equal to or greater than the training guarantee shortfall:

    (a)the shortfall is reduced, or further reduced, as the case requires, to 0; and

    (b)the excess is reduced, or further reduced, by the amount of the shortfall.

  `(4) If the training guarantee excess is less than the training guarantee shortfall:

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

    (b)the excess is reduced, or further reduced, to 0.

Employer may elect to postpone training guarantee shortfall

  `15B.(1) An employer who has a training guarantee shortfall in a year may elect to postpone the shortfall, whether or not it has been reduced by section 15A.

  `(2) The election must be made by giving written notice in the prescribed form to the Commissioner on or before 30 September in the next year or such later day as the Commissioner allows.

  `(3) An election cannot be revoked after 30 September in the next year unless the Commissioner otherwise allows.

Effect of election by employer group to postpone training guarantee shortfall

  `15BA.(1) If an employer group elects to postpone a training guarantee shortfall ("the group shortfall") in a year, this section applies despite sections 12 and 14.

  `(2) Each member of the group has a training guarantee shortfall in that year that is worked out using the formula:

Member's annual national payroll

———————————————————— x Group shortfall

Employer group's annual national payroll

"Employer group's annual national payroll" means the total of the respective annual national payrolls for that year of the members of the group;

"Group shortfall" means the group shortfall;

"Member's annual national payroll" means that member's annual national payroll for that year.

  `(3) Each member of the group is taken to have elected under section 15B to postpone the training guarantee shortfall that the member has because of subsection (2) of this section.

Effect of election by employer other than employer group

  `15C.(1) If an employer (other than an employer group) elects to postpone a training guarantee shortfall ("the postponed shortfall") in a year ("year 1"), training guarantee charge is not payable on the postponed shortfall except as provided in this section.

  This section applies to training guarantee shortfalls of the employer in the order in which they arise.

    `(2) If:

    (a)the employer has a training guarantee excess in the next year ("year 2"), whether or not the excess has been reduced by an earlier application of this section; and

    (b)the excess is equal to or greater than the postponed shortfall;

  then:

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

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

    `(3) If:

    (a)the employer has a training guarantee excess in year 2, whether or not the excess has been reduced by an earlier application of this section; and

    (b)the excess is less than the postponed shortfall;

  then:

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

    (d)the excess is reduced, or further reduced, to 0; and

    (e)if the employer has a training guarantee excess in year 3 (the year after year 2):

        (i)subsections (5) and (6) apply; and

        (ii)a reference in those subsections to the postponed shortfall is a reference to the postponed shortfall as so reduced or further reduced; and

    (f)otherwise—training guarantee charge is payable on the postponed shortfall as so reduced or further reduced.

  `(4) If the employer does not have a training guarantee excess in year 2, then:

    (a)if the employer has a training guarantee excess in year 3 (the year after year 2)—subsections (5) and (6) apply; and

    (b)otherwise—training guarantee charge is payable on the postponed shortfall.

  `(5) If the training guarantee excess in year 3 is equal to or greater than the postponed shortfall:

    (a)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.'.".

6.After clause 14, page 8, insert the following new clause:

  Annual training guarantee statements

  "14A. Section 40 of the Principal Act is amended by inserting in subsection (1) `, or would be liable apart from section 15A,' after `liable'.

7.Clause 15, page 8, lines 19 to 24, omit the clause, substitute the following clause:

  Requirements for training guarantee statement

  "15. Section 42 of the Principal Act is amended by omitting subparagraphs (d)(iv) and (v) and substituting the following subparagraphs:

    `(iv)the employer's training guarantee shortfall in the year, disregarding sections 15A to 15C; and

    (iva)if the employer has a training guarantee excess in the second year before the year concerned—that excess, or that excess as reduced because of subsection 15A(1) or by section 15C, or both, as the case requires; and

    (ivb)if the employer has a training guarantee excess in the year before the year concerned—that excess, or that excess as reduced by section 15C, as the case requires; and

    (v)the training guarantee charge (if any) payable for the year concerned; and'.".

8.Clause 16, page 8, proposed subsection 42A(1), lines 30 and 31, omit "paragraph 15C(3)(b) or subsection 15C(4) or (6),", substitute "paragraph 15C(3)(f), (4)(b) or (6)(b),".

9.Clause 16, page 8, proposed paragraph 42A(1)(a), line 33, omit "second", substitute "third".

10.Clause 16, page 9, lines 6 to 11, omit proposed subparagraphs 42A(2)(d)(ii) and (iii), substitute the following subparagraphs:

    "(ii)whether the employer has a training guarantee excess in the first year after the shortfall year and, if so:

        (A)the amount of that excess; and

        (B)the shortfall as reduced by subsection 15C(2) or (3); and

    (iii)whether the employer has a training guarantee excess in the second year after the shortfall year and, if so:

        (A)the amount of that excess; and

        (B)the shortfall as reduced by subsection 15C(5) or (6); and".

11.Clause 18, page 9, lines 24 to 30, omit paragraph 18(a), substitute the following paragraph:

    "(a)by omitting subparagraph (2)(a)(iv) and substituting the following subparagraphs:

        `(iv)the employer's training guarantee shortfall in the year, disregarding sections 15A to 15C;

        `(iva)if the employer has a training guarantee excess in the second year before the first-mentioned year—that excess, or that excess as reduced because of subsection 15A(1) or by section 15C, or both, as the case requires;

        `(ivb)if the employer has a training guarantee excess in the year before the first-mentioned year—that excess, or that excess as reduced by section 15C, as the case requires;

        `(v)  if the employer has a training guarantee excess in the first year after the first-mentioned year—that excess, or that excess as reduced by subsection 15C(5) or (6), as the case requires;

        `(vi)if the employer has a training guarantee excess in the second year after the first-mentioned year—that excess;'.".