Cost-effective recruitment solutions
Financial Assistance
Employing an apprentice or trainee can be a cost-effective way for your business to increase skills and productivity.
A range of State and Federal Government financial assistance and other incentives are available to eligible employers when hiring an apprentice or trainee. They can help your business to cover some of the wages or other costs.
The Apprenticeship Community can help to assess your eligibility for any financial or other assistance available to employers when employing an apprentice or trainee.
Australian Government Financial Incentives
The Australian Apprentices Incentives System aims to contribute to the development of a highly skilled and relevant Australian workforce. It aims to support ongoing economic sustainability and competitiveness.
The Australian Apprenticeships Incentive System (AAIS) offers incentives to employers, particularly those industries experiencing skills shortages. In its first phase, from 1 July 2022 to 30 June 2024, the Australian Apprenticeships Incentive System will provide wage subsidies for eligible employers in priority occupations. Priority occupations are those listed on the Australian Apprenticeship Priority List.
In exciting news for employers, from January 1, 2024, further high-priority occupations have been added to the Australian Apprenticeship Priority List. For high-priority apprenticeships, employers can earn up to $6,000 for first and second-year apprentices and up to $3,000 for third-year apprentices. This means ongoing incentives as your apprentices gain more experience and skills.
- For employers of new or recommencing Australian Apprentices undertaking a Certificate III or higher qualification in a Priority Occupation, 10 per cent of wages for first and second year apprentices (up to $1,500 per quarter) and 5 per cent of wages for third year apprentices (up to $750 per quarter).
- For employers of Australian Apprentices not in a Priority Occupation, a hiring incentive of (max) $3,500 paid in two equal six-monthly instalments (max $1,750 each) after commencement is available. This is for new or recommencing Australian Apprentices undertaking a Certificate II or higher qualification in an occupation that is not on the Australian Apprenticeship Priority List OR in a Certificate II qualification in an occupation on the Australian Apprenticeships Priority List.
For more information on incentives available to employers and apprentices in the new Australian Apprenticeships Incentive System (AAIS), refer to the AAIS factsheet, AAIS Frequently Asked Questions,
Employers claiming incentives for an apprentice or trainee who commenced before 1 July 2022 will continue to be supported under the current Australian Apprenticeships Incentives Program.
Assistance for Australian Apprentices with Disability
Disabled Australian Apprentice Wage Support (DAAWS) of up to $104.30 p/w (part-time pro-rata according to the hours worked) are available to employers. In addition, the Australian Government – Job Access Employment Assistance Fund can provide financial assistance for any workplace modifications required. For further information call 1800 464 800 or visit jobaccess.gov.au
Claiming change for RTO’s
From the 4th of March 2024, RTO’s will need to log in to the Department of Employment & Workplace Relations (DEWR) Apprenticeship Data Management System (ADMS) to claim any funds pertaining to the delivery of Mentoring & Tutorial Support under the DAAWS system.
If you are yet to access ADMS the below link will provide instructions on how to access ADMS, as an RTO you will be accessing ADMS the same way an employer does.
https://adms.australianapprenticeships.gov.au/adms/how-to-access
Once you have linked your myGovID using RAM (Relationship Authorisation Manager), you will be able to register for an account in ADMS using the below link.
https://adms.australianapprenticeships.gov.au/adms/sign-in
Further Incentives for your Apprentice or Trainee
Australian Apprenticeship Training Support Payment
In addition to employer incentives, apprentices working in a priority occupation (Certificate III or above) can be eligible for The Australian Apprenticeship Training Support Payment to assist them with living and work expenses. This is paid in arrears in six monthly instalments for a maximum of two years, at the rate of $1,250 per payment ($5,000 in total) or $625 per payment ($2,500 in total) for part-time Australian Apprentices. Further eligibility may apply.
Further non-financial incentives may be available to support your apprentice or trainee, including a Living Away from Home Allowance and, for certain apprenticeships, Australian Apprenticeship Support Loans to assist them to purchase work-related tools or equipment, or a car for work travel. Learn More
Australian Apprenticeship Support Loans (AASL)
If you are about to undertake or are undertaking an apprenticeship or traineeship, an Australian Apprenticeship Support Loan (AASL), formerly known as the Trade Support Loan, can help you pay for your everyday living expenses. For instance, you may need extra help to pay rent or bills. You may need tools for your trade or need a car or ute to help you get to work.
An Australian Apprenticeship Support Loan is an interest-free government funded loan that is paid in monthly instalments for up to six months at a time. Your debt is indexed annually and you will get a 20 per cent discount on your debt when you have successfully completed your apprenticeship. Learn More
New Energy Apprentice Support Payment
From 1st January 2023: New Energy Apprentice Support payment
The New Energy Apprentice Support Payment is designed to encourage apprentices to choose clean energy careers, improve retention rates and deliver more successful completions by providing direct financial support to Australian Apprentices commencing an Australian Apprenticeship in a clean energy occupation. Learn More
Living Away from Home Allowance
Apprentices/Trainees undertaking a Certificate II or higher level qualification may be eligible for Living Away From Home Allowance if they have to move away from their parental/guardian home for the first time to commence or remain in an Australian Apprenticeship, or are homeless. Learn More
State Government Financial Incentives
Western Australia:
Jobs and Skills WA Employer Incentive of up to $8,500 is available to employers who employ an
apprentice or new entrant trainee and who have lodged the training contract for registration on or after July 2019.
There is also a Travel and Accommodation Allowance available for apprentices to assist them complete their off-the-job training (have to travel more than 70kms round trip from their residential address).
More information regarding incentives can be found at Jobs and Skills WA Department of Training and Workforce Development
We can advise your eligibility for assistance
The Apprenticeship Community can assist you in regards to any incentives available when commencing your apprentice or trainee.
For more information, contact us today via our online form below.
