The Federal Government announced an extension to the Boosting Apprenticeship Commencements and Completing Apprenticeship Commencements wage subsidies program with a $365.3 million investment that will support an extra 35,000 apprentices and trainees get into a job.
Enrolments for the Boosting Apprenticeship Commencement wage subsidy, which provides employers with 12 months of wage subsidy support, are being extended to the end of the 2021-22 financial year (30 June 2022). This includes those apprentices who have already been signed up under this measure. Employers are eligible for 50 per cent of the wages for a new or recommencing apprentice or trainee, up to $7,000 per quarter.
National Retail Association (NRA) Director of Training Sushila Richardson welcomed the news of the subsidy limits being lifted to further support the Australian job market. As the Registered Training Organisation for the peak retail body, the NRA offers specific and tailored training for retailers.
The extension of the subsidy with the proviso of unlimited uptake on numbers ensures all businesses can now take on apprentices and trainees – knowing that federal funded subsidies will continue to support their business, in particular small businesses who have been hit hard by the pandemic.
Employers are encouraged to take advantage of the federal subsidy to onboard new staff to develop their future workforce capacity. For existing staff who were signed up under this initiative from October last year – the continuation of the funding will also ensure that employers will continue to receive subsidies for those apprentices and trainees.
Any employer who takes on an apprentice or trainee up until 30 June 2022 can gain access to:
- 50 per cent of the eligible Australian Apprentice’s wages in the first year, capped at a maximum payment value of $7,000 per quarter per Australian Apprentice,
- 10 per cent of the eligible Australian Apprentice’s wages in the second year, capped at a maximum payment value of $1,500 per quarter per Australian Apprentice, and
- 5 per cent of the eligible Australian Apprentice’s wages in the third year, capped at a maximum payment value of $750 per quarter per Australian Apprentice.
What is an apprenticeship or traineeship?
An apprenticeship or traineeship combines paid on-the-job training provided by an experienced supervisor in the workplace, with off-the-job learning through a training provider.
Traineeships can be full-time or part-time and are available to anyone of working age and at any education level including school students, school-leavers, people re-entering the workforce, and those seeking to change or advance their career.
Why should you take on an apprentice or trainee?
Employing a trainee can deliver real benefits to your business, including:
- Employers can shape the learning of trainees to suit the needs of your business, developing staff with job-specific skills and experience.
- Traineeships are an effective way of building your team. Trainees are more likely to stay with your business because you gave them the start to their career. Retaining their skills and experience is good for your business.
- Traineeships combine hands-on industry training with off-job study under a training contract between the trainee and their employer.
- Employing apprentices is cost-effective – employers can access subsidised training (subject to eligibility) and Government incentives.