What is the Boosting Apprenticeships Commencements Wage Subsidy?
The Boosting Apprenticeships Commencements is a new government wage subsidy to encourage employers of any size or industry, Australia-wide, to take on apprentices and trainees.
This wage subsidy is in addition to the existing $2.8 billion Supporting Apprentices and Trainees wage subsidy.
To assist with the recovery from the impact of COVID-19, the Australian Government is providing support to all employers who engage a new Australian Apprentice.
The $1.2 billion Boosting Apprenticeship Commencements wage subsidy will support businesses and Group Training Organisations to take on new apprentices and trainees, to build a pipeline of skilled workers to support sustained economic recovery.
Any businesses or Group Training Organisation that engages an Australian Apprentice on or after 5 October 2020 may be eligible for a subsidy of 50 per cent of wages paid to an apprentice between 5 October 2020 and 30 September 2021, to a maximum of $7,000 per quarter.
This assistance will support 100,000 new apprentices across Australia, and is in addition to the Supporting Apprentices and Trainees wage subsidy which is helping small and medium businesses to keep their apprentices and trainees in work and training.
Eligible employers and Group Training Organisations will receive a wage subsidy of up to 50 per cent of the Australian Apprentice’s or trainee’s gross wage paid.
The wage subsidy is available for a maximum of $7,000 per quarter per eligible Australian Apprentice.
Payments will be made quarterly in arrears, with first claims for the subsidy available from 1 January 2021. The subsidy is available for wages paid from 5 October 2020 to 30 September 2021.
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.
The Boosting Apprenticeship Commencements wage subsidy is available to employers of any size, industry or location. It is capped at 100,000 places.
The subsidy is not available for apprentices receiving other forms of Australian Government wage subsidy (e.g. Supporting Apprentices and Trainees, JobKeeper or the JobMaker Hiring Credit.)
Conditions for any existing workers that commenced in an Australian Apprenticeship between 5 October 2020 and 27 October 2020 will remain unchanged.
From 28 October 2020, your business or Group Training Organisation may be eligible to attract a subsidy for up to 30 existing workers who commence a non-trade Australian Apprenticeship on or after 28 October 2020 if they:
- move from casual employment to a part-time or full-time Australian Apprenticeship; or
- move from part-time employment to a full-time Australian Apprenticeship.
Final claims for payment must be lodged by 31 December 2021.