Wage subsidy to support businesses to take on new apprentices and trainees 

The Federal Government has announced a $1.2 billion apprentice and trainee commencement incentive program to support employers to take on a new apprentice or trainee. 

The scheme aims to create 100,000 new apprenticeships or traineeships to assist with the recovery from the impact of Covid-19.

Effective from 5 October 2020, businesses that take on a new Australian apprentice or trainee will be eligible for a 50 per cent wage subsidy, regardless of geographic location, occupation, industry or business size.

The scheme will be open to employers for new or recommencing apprentices and trainees for the period up to 30 September 2021, and will be worth up to $7,000 per quarter. It will be capped at 100,000 apprentices and trainees.

HVTC CEO Sharon Smith welcomed the announcement of the 50% wage subsidy to boost apprenticeship commencements.

"Through initiatives like the Supporting Apprentices and Trainees Wage Subsidy and JobKeeper, we have been able to support our Host Employers to keep our existing apprentices and trainees in skills training and employment," she said.

"The 50% wage subsidy being extended to new and recommencing apprentices and trainees will be really helpful for all businesses to be able to afford to employ young people and school leavers as apprentices and trainees.

"With a growth in unemployment rates as a result of Covid-19, this is a welcome incentive for businesses to offer jobs to young people while supporting the economic recovery of the country. 

"We look forward to working with businesses to meet their skills and employment needs while creating new apprenticeship and traineeship opportunities for job seekers and school leavers within our regions."

Is my business eligible?

Your business 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 wage subsidy is available for a maximum of $7,000 per quarter per eligible Australian Apprentice.
  • The subsidy is available for wages paid from 5 October 2020 to 30 September 2021.

Anything else I should know?

  • The subsidy is available to employers of any size, industry or geographic location.
  • The subsidy is capped at 100,000 places.
  • 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.
  • Payments will be made quarterly in arrears, with first claims for the subsidy available from 1 January 2021. Final claims for payment must be lodged by 31 December 2021.

Contact us on 1800 247 864 to find out more. Or if you are one of our existing Host Employers, please contact your HVTC Field Officer.

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