Have you been considering taking on an apprentice or trainee but unsure if your business could fund the cost during these difficult economic times?
The Boosting Apprenticeship Commencements wage subsidy may make employing an apprentice a viable option for you [1].
What is it?
The scheme was announced in the recent Federal Budget as part of the Government’s assistance with the recovery from the impact of Covid-19 [2].
The assistance encourages employers to take on new apprentices and trainees and aims to boost the number of skilled Australian workers necessary to support sustained economic recovery.
The support is in addition to the existing Supporting Apprentices and Trainees wage subsidy, comes at a cost of $1.2 billion, and is limited to 100,000 new or recommencing apprentices or trainees.
Who is eligible?
- Any business or Group Training Organisation that hires an Australian Apprentice on or after 5 October 2020 and that apprentice is undertaking a Certificate II (or higher) qualification and has a training contract that is formally approved by the state training authority.
How much is the subsidy?
- Eligible participants will receive a subsidy of up to 50% of gross wages paid to an apprentice between 5 October 2020 and 30 September 2021.
- The subsidy is capped at a maximum of $7,000 per quarter per eligible apprentice.
How many apprentices can you claim for?
- There is no limit on the number of apprentices or trainees you can claim for, provided you meet the eligibility criteria.
- However, your Australian Apprentices must be one of the first 100,000 who commence or recommence on or after 5 October 2020 and registers for the subsidy.
Are you eligible if you also qualify for other training subsidies?
- The subsidy is not available for any apprentice receiving any other form of Australian Government wage subsidy e.g. Supporting Apprentices and Trainees or JobKeeper.
- However, you may still qualify for other assistance under the Australian Apprenticeships Incentives Program for a different apprentice or trainee.
How do you register and apply for the subsidy?
- If you are an eligible employer, you must advise of your intention to claim the Boosting Apprenticeship Commencements using the Boosting Apprenticeship Commencements Registration Form during sign up of a new Australian Apprentice. The form will be available from your Australian Apprenticeship Support Network provider.
Other important facts
- The Boosting Apprenticeship Commencements is not available if your apprentice started before 5 October 2020.
- The subsidy is available to employers of any size, industry or geographic location.
- Payments will be made quarterly in arrears, with first claims for the subsidy available from 1 January 2021.
Where to go for further information
Please contact the team at Integrity Impressions if you need further assistance, or full details of the new subsidy may be found at:
https://docs.employment.gov.au/documents/boosting-apprenticeships-commencements-fact-sheet
[1]Any decision you make in relation to taking on an apprentice or trainee should be made after consideration of all relevant facts, and not based purely on the availability of subsidies.
[2] Many of the measures announced are not yet law.
