1. BUDGET & TAX UPDATE 2006 March to April 2006

2. 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 R25 000 (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

3. 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

4. PROJECT STATISTICS 2002-2006 Total Rand AllocationR111 100 323 Total Rand Spend to DateR42 006 723 Number of Projects Funded Since 04/200245 Number of Participants10 361 Number of Completed Participants6 921 Race (completed): African6 596 Indian78 White10 Coloured237 Gender (completed): Male1 968 Female2 328 Disabled (completed):112

5. 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.

6. 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 2006 - 31 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 10 000 2 year learnership – R 15 000 3 year learnership – R 25 000 Note: Incomplete learnership agreements will be returned immediately

7. 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

8. BUDGET UPDATE SKILLS DEVELOPMENT 2006 Type of LearnerAmount ChangeDisabled 18.1 Previously Employed CommenceR 17 500 to R 20 000 150% Annual Salary to R 40 000 Max 18.2 Previously Unemployed CommenceR 25 000 to R 30 000 175% Annual Salary to R 50 000 Max 18.1 & 18.2CompleteR 25 000 to R 30 000 175% Annual Salary to R 50 000 Max Scholarships and Bursaries Tax exemptTuition and related expenses Learner contract obligation to payback

9. THANK YOU Call Centre: 086 101 0001 Website: www.fasset.org.za Any Questions ?