If you’re a business owner and are considering taking on a new apprentice or trainee, the Boosting Apprenticeship Commencement wage subsidy announced by the Australian Government as part of the Federal Budget will come as welcome news.
With so many businesses across Australia struggling due to the negative impacts of COVID-19, the subsidy aims to boost economic recovery by supporting employers to hire new trainees and apprentices. The Australian Government have committed $1.2 billion with the hope of creating more job opportunities in the short term, while also increasing the number of skilled workers in the workforce in the longer term.
For electricians and other business owners who are needing to take on more staff, the new apprentice and traineeship wage subsidy will make a hugely positive difference in what has been an otherwise really challenging year. So if you’re one of the many business owners that this subsidy may help, read on to find out the key details, including who is eligible, how much is paid and importantly, how you can apply.
Is your business eligible?
If your business hires an Australian apprentice or trainee between 5 October 2020 and 30 September 2021, who is completing a Certificate II qualification or higher and has a training contract that is formally approved by the state training authority, you may be eligible. Importantly, this subsidy is available to employers of all sizes (from sole traders to large organisations) across all industries, and is applicable for any new apprentices and trainees that the business puts on. This is a key point of difference to the existing Supporting Apprentices and Trainees wage subsidy which applies to apprentices and trainees who are already employed and is limited to small and medium-sized businesses only.
How much will you receive?
The wage subsidy is available for up to 50 per cent of your apprentice or trainee’s gross payable wage, up to a maximum of $7,000 per quarter (per employee), between 5 October 2020 and 30 September 2021. All payments will be made quarterly in arrears, which means the first claims for the subsidy will be available from 1 January 2021.
It’s important to note that the subsidy will support up to 100,000 new apprentices and trainees across Australia, and is not available to apprentices or trainees who are currently receiving an Australian Government wage subsidy such as JobKeeper or Supporting Apprentices and Trainees.
How do you apply?
If your business is eligible, and you wish to hire an apprentice or trainee and apply for the subsidy, you can choose to apply directly yourself, or engage a Group Training Organisation (GTO) such as NECA Education and Careers to handle the entire process for you. If you choose to partner with us, we’ll make it easy and stress-free, by taking care of all the HR matters, payroll and paperwork, in the same way we do when you opt to lease an apprentice with us.
We will apply for the subsidy on your behalf and pass the incentives directly on to you, saving you the time and effort involved in managing the process, so you can instead focus on your business and training up your new employee.
Make the most of the wage subsidy while you can
With the gradual easing of restrictions and the apprenticeship commencement wage subsidy that is currently on offer, now could be the ideal time to hire a new apprentice or trainee for your electrical or trade business. Remember, the subsidy is only available for 12 months and is limited to 100,000 apprentices – so if you’re interested be sure to act fast.
If you’d like to discuss your unique needs or find out how we can help you to hire an apprentice or trainee and receive the wage subsidy hassle-free, get in touch with our team now!