More apprentices and trainees have the potential to gain meaningful employment following the wage subsidy extension of the Boosting Apprenticeship Commencements program.
Recently the Federal Government announced the expansion of its targeted wage subsidy program for apprentices and trainees, as a part of the National Economic Recovery Plan. The news was welcomed by many industries that rely heavily upon apprentices.
As JobKeeper has now ended, the scheme will provide some relief to employers who may not have bounced back to pre-covid operating yet.
The original scheme that was introduced in October 2020, will now become demand-driven with placements for the program uncapped and expanded for a full 12 months for new apprentices and trainees signed up prior to 30 September 2021.
It is estimated that this expansion will generate around 70,000 new apprentice and trainee places on top of the 50,000 the scheme helped create since launching in October last year, with the Government investing around $1.2 billion.
Carpenters, electricians, child carers and mechanics are some of the top jobs that have benefited from the scheme already.
Employers may be eligible for a subsidy of 50 per cent of wages paid to a new apprentice or trainee, up to a maximum of $7,000 per quarter. Although the subsidy is not available to apprentices already receiving any other form of Australian Government wage subsidy.
The Prime Minister has detailed how 40 per cent of the new apprentices and trainees have gone to small businesses, and about one-fifth of new apprentices since the scheme began were 35 or older.
Is my business eligible?
Your business or Group Training Organisation may be eligible if:
- you engage an Australian Apprentice between 5 October 2020 and 30 September 2021, and
- your Australian Apprentice or trainee 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 employers and Group Training Organisations will receive a wage subsidy of up to 50 per cent of the Australian Apprentice’s gross wage paid.
- The subsidy is available for Australian Apprentices commencing or recommencing between 5 October 2020 and 30 September 2021.
- The wage subsidy is available for a maximum of $7,000 per quarter, per eligible Australian Apprentice, for wages paid in the 12-month period from the date of commencement or recommencement.
So far, the scheme has been an outstanding success. The additional funding ensures access to apprenticeships and traineeships for many Australians and a chance for more businesses to invest and nurture Australia's workforce of the future.
For further information on how to apply for the subsidy, including information on eligibility, contact an Australian Apprenticeship Support Network provider.
For all of your business finance assistance, contact Morris Finance on (03) 5223 3453 today.