Apprenticeship wage subsidies for businesses
Australian businesses who take on a new apprentice or trainee are now eligible for a 50 per cent wage subsidy thanks to the Federal Government's Boosting Apprenticeship Commencements program.
The Boosting Apprenticeship Commencements program recognises the important pathway apprenticeships play in getting young people into jobs. Designed to assist in the nation's economic recovery from COVID-19, the program will ensure a skills pipeline is in place to meet the future needs of Australian employers.
How you can benefit
From 5 October 2020 until 31 March 2022, eligible employers and Group Training Organisations (GTOs) can apply for a wage subsidy of 50 per cent of the commencing or recommencing apprentice or trainee’s gross wages. A subsidy of up to $7,000 per quarter is available and employers can receive the subsidy for any number of apprentices or trainees.
As of 9 March 2021, to support a sustained economic recovery the Federal Government announced an additional $1.2 billion for the program and removed the cap limit of 100,000 places. This means more eligible employers and GTOs, or those that missed out before the cap was removed, can take on additional apprentices and trainees.
On 11 May 2021, an additional $2.7 billion was committed to the program as part of the Federal Government's 2021-22 budget. This further extension will deliver on the Government’s commitment to building a pipeline of skilled workers by further supporting growing businesses to take on new apprentices and trainees. The Australian Government is also delivering pathway services for 5,000 women to commence in a non-traditional apprenticeship.
Eligibility criteria
Any employer, including Group Training Organisations, who takes on a new Australian apprentice will be eligible for the wage subsidy regardless of geographic location, occupation, industry or business size.
The subsidy is available from 5 October 2020, and final claims for payment must be lodged by 30 June 2023.
Specific eligibility criteria include:
- you must engage an Australian apprentice between 5 October 2020 and 31 March 2022
- your apprentice or trainee must be undertaking a certificate II or higher qualification, and have a training contract that is formally approved by the state training authority
- existing worker sign-ups will be capped at 30 sign ups per business per ABN
- for existing workers to be eligible for Boosting Apprenticeship Commencements funding they must be moving from casual to part-time or full-time employment, or from part-time to full-time employment
- no limit will apply where the existing worker commences a trades-based Australian apprenticeship.
Impacts on other available funding
The subsidy is not available for any apprentice receiving any other form of Australian Government wage subsidy such as Supporting Apprentices and Trainees or JobKeeper. Where an employer is eligible for multiple funding arrangements, you'll need to choose which payment best supports your circumstances.
For more information about the program, including a range of frequently asked questions, visit the Australian Government's Department of Education, Skills and Employment website.
Whether you already have an apprentice on the books or need help finding one, we can help. Our free Find Your Apprentice service can help connect you with job-ready candidates in your industry*.
TAFE Queensland can also provide your apprentice with quality, hands-on trade training and help get them ready for your business. Find out more and get your apprentice ready for business.
*Available for select courses/locations only