Tasmania to introduce payroll tax relief to boost youth employment


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The measure will come into force from 1 July and is expected to lead to the creation of 6,500 jobs.

Tasmania is introducing payroll tax relief for employers that take on young people in a bid to cut underemployment.

The Australian island state’s government has announced that from 1 July, organisations employing a new apprentice or trainee will receive tax relief on the position for the next two years. If they hire workers between 15 and 24 years of age who are not apprentices or trainees, they will be eligible for the incentive for up to 12 months.

Michael Bailey, chief executive of Tasmania’s Chamber of Commerce, said it was exciting to try out the idea while the economy was growing rather than contracting.

“It makes it easier for business to invest in apprentices and trainees to grow their capacity and the capacity of the Tasmanian economy,” he said. “We know that underemployment has been a growing concern and this is a way to secure full-time employment for people and also give them the skills to have ongoing careers.”

Treasurer Peter Gutwein said he hoped the initiative, which is expected to cost about A$17 million (US$12.7 million) to operate, would help support the creation of about 6,500 jobs.

“This is available to any business that is in the payroll tax net – that’s around 2,500 businesses that in Tasmania employ slightly more than half of all Tasmanians and who will be benefitted by this initiative,” he said. “We need to leverage the economic recovery that we are seeing to benefit more Tasmanians and especially young Tasmanians.”