Hair and Beauty Australia explains the changes to the Tools for Trade tax exempt incentive.
Tools for Trade are a tax exempt allowance paid to apprentices to assist with the cost of tools, training and other associated apprenticeship costs.
From 1 July 2014 the tools for trade incentive will cease for all apprentices. This means that any apprentices who commenced their apprenticeship after 1 July 2014 or any existing apprentices where tool for trade payments were due on/after 1 July 2014 will not receive payment.
For any apprentices who are due to receive their tools for trade incentive prior to this date or are eligible for this payment will continue to receive their applicable tools for trade allowance.
Subject to legislation, apprentices will have access to student loans where the apprentice can access up to $20,000 over a four year period which is paid monthly.
Hair and Beauty Australia assists members from hair and beauty salons, day spas and training colleges, offering individual tailored advice to ensure salons are compliant and meeting the legal obligations.
For more information and clarification call Hair and Beauty Australia on 1800 997 795 or visit www.hairandbeautyaustralia.com.au