Ahead of the formal budget being handed down on 6 October, the Federal Government have announced a key $1.2 billion measure to boost apprenticeship and traineeship commencements across Australia.
- Employers of all sizes, in all industries that take on an apprentice on or after 5 October 2020 will be eligible to access the Boosting Apprenticeship Commencements Wage Subsidy.
- Employers will be able to access a 50 per cent wage subsidy for their apprentice/trainee’s gross wage paid between 5 October 2020 and 30 September 2021.
- A maximum of $7,000 per quarter can be received per eligible apprentice or trainee.
- There is no limit on the number of apprentices or trainees an employer can take on, however, the program is capped at 100,000 places.
Any business or Group Training Organisation that takes on an apprentice or trainee on or after 5 October may be eligible to attain the Boosting Apprenticeship Commencements Wage Subsidy to help them offset the costs of taking on a first-year apprentice or trainee.
Apprentices and trainees need to be undertaking a Cert II or higher qualification and be engaged in a formally approved training contract.
The apprentice or trainee needs to be commencing or re-commencing from 5 October 2020. The wage subsidy will be paid for the apprentice/trainee’s gross wages paid between 5 October 2020 and 30 September 2021.
There is no limit on the number of apprentices or trainees an individual business or group training organisation can take on. However, the program is capped at 100,000 places across the nation.
An apprentice cannot attract the Boosting Apprenticeship Commencements Wage Subsidy if the employer is receiving Job Keeper payments for the individual.
This should make putting on an apprentice or trainee in a business much more appealing in these tough economic times.
Data from Fair Work shows that the average weekly wage of an apprentice is approximately $500 per week for someone under 21 and $730 per week for someone aged 21 and over. This new subsidy alone could cover on average at least 75 per cent of a first year’s apprentice wage.
Apprenticeship Support Australia, which is powered by CCIWA, is calling for employers to stand together to secure our State’s skills pipeline, by increasing their uptake of apprentices and trainees.
Commencement numbers have been in decline since 2012 and it was last reported that only 16,000 commencements had occurred in WA in the 12 months to March 2020. This is too low to meet WA’s skill needs.
This new incentive, combined with the Support for Apprentices and Trainees wage subsidy, should go some way to achieving this goal.
The State Government also offers an Employer Incentive Scheme of up to $8500; a payroll tax exemption for apprentices; and employers in the construction and defence sectors can also attain generous additional incentives for some apprentices.
To help you make sense of the eligibility criteria, how to claim the subsidy and other incentives available to support employers to skill their workforce, join Apprenticeship Support Australia's Free Webinar.
Date: Monday, October 19, 2020
Time: 10.00am - 11.00am