Employer tax obligations - student work experience

(Initiate)Initiate

21 May 2021

Hello,

Would an employer who pays a student coming in for work experience ($300 a week for two weeks), be required to be put on to the payroll?

Under the Work Experience manual issued by the Dept of Education (VIC), this specifically states that where the student is under the age of 18, if the payment made to the student is $356 or less per week, the employer will not be obliged to:

make any withholding
collect tax file number declarations
issue payment summaries
report payment details to the ATO

Would like to clarify the above.

Thanks!

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RichATO

(Community Support)Community Support

24 May 2021

Hi @anjali_r

I have reviewed The Work Experience manual you refer to and it is clear that the intent of the 2 week student placements with employers is for work experience and on-the-job training rather than employment.

Under Fair Work Australia rules, work experience & internships of this type do not require to be paid at all. That's perfectly above board.

The fact that the Victorian Department of Education does stipulate a minimum payment amount to a student of $5 per day for their work experience time shows that it is simply a token payment to make their efforts feel valued and possibly cover some of their costs in attending the employer's location.

You can find more information about Fair Work Australia's views on work experience & internships online here.

ATO