New Government Wage Subsidy for Apprenticeships

The $1.2 billion Boosting Apprenticeship Commencements wage subsidy for apprenticeships supports employers and Group Training Organisations to take on new apprentices and trainees. This incentive aims to build a pipeline of skilled workers to support sustained economic recovery.

Businesses or Group Training Organisation who take on an Australian apprentice from 5 October 2020 to 31 March 2022 may be eligible for a subsidy of 50 per cent of wages paid to an apprentice, up to a maximum of $7,000 per quarter.

Is my business eligible for the Boosting Apprenticeships Commencements incentive?

Your business may be eligible if:

• you engage an Australian apprentice between 5 October 2020 and 31 March 2022, 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 relevant state training authority

How much is the wage subsidy for apprenticeships?

Eligible employers and Group Training Organisations receive a wage subsidy of up to 50 per cent of your Australian apprentice’s gross wage paid;

• the wage subsidy is available at a maximum of $7,000 per quarter per eligible Australian apprentice
• the subsidy is available for wages paid from 5 October 2020 to 31 March 2022

For example, based on one apprentice who earns $550 a week – a host employer could SAVE $275 a week per apprentice, as this is covered in the wage subsidy.

Anything else I should know about the wage subsidy?

• the wage subsidy is available to employers of any size, industry or geographic location
• the cap limit has been removed to provide additional support
• this 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 are made quarterly in arrears, with first claims for the subsidy available from 1 January 2021
• final claims for payment must be lodged by 30 June 2023.

Hiring an apprentice is an effective way to manage your business and workload over the coming months. Get in contact today to find out more.