BUDGET & TAX UPDATE 2006 March to April 2006

SDL STRUCTURE 20% NSF 70% Employer Grants 10% Admin Fasset 2005/06: 1 April - 31 March2006/07: 1 April - 31 March 100% SDL Paid to SARS = 1% Payroll for Employers 500K+ WSP 50% - 30 September 2005 SCG 20% - 31 March 2006 No ATR in this year No extensions on mandatory - new employers only, extensions on discretionary only PDI R (x 5 learners max on sliding scale) - 31 March 2006 WSP 2006/07 & ATR 2005/06 50% - 30 June 2006 SCG: 20 % – 31 March 2007 No extensions on mandatory - new employers only, extensions on discretionary only LCG – see slide below

EXEMPT & SDL PAYING BENEFITS EXEMPTSDL ATR & WSP No SDL SCG No SDL CPE Learners CPE Technical CPE Legislative ABET Learnership Grants Social Project Beneficiaries SDF Training

PROJECT STATISTICS Total Rand AllocationR Total Rand Spend to DateR Number of Projects Funded Since 04/ Number of Participants Number of Completed Participants6 921 Race (completed): African6 596 Indian78 White10 Coloured237 Gender (completed): Male1 968 Female2 328 Disabled (completed):112

SDF UPDATE  FSA intervention begins: Calls 01 March 2006 Visits 01 April 2006  SDF 1 day training: Introductory Course for SDFs 19 July 2006  Employers who are now SDL exempt to register with Fasset as Non-SDL Payer – forms available on www from mid-March 2006.

LEARNERSHIP GRANT 2006/07 Previously Disadvantaged Individuals (PDI) Black (African, Coloured, Indian) and/or Disabled Must be registered with Fasset Must commence the learnership in period 1 April March 2007 Levy Payer & Non-Levy Payer (different forms) Not only Fasset learnerships. See website for list Duration and amount of grant has changed 1 year learnership – R year learnership – R year learnership – R Note: Incomplete learnership agreements will be returned immediately

UPCOMING EVENTS SDF CPEMay 2006Toxic Management and Leadership CPE LearnerMay to July 2006Survival Skills for the World of Work CPE LegalAugust to September 2006Labour Law CPE TechnicalMarch to April 2007Budget & Tax Update 2007

BUDGET UPDATE SKILLS DEVELOPMENT 2006 Type of LearnerAmount ChangeDisabled 18.1 Previously Employed CommenceR to R % Annual Salary to R Max 18.2 Previously Unemployed CommenceR to R % Annual Salary to R Max 18.1 & 18.2CompleteR to R % Annual Salary to R Max Scholarships and Bursaries Tax exemptTuition and related expenses Learner contract obligation to payback

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