Government Stimulus Package
Government Incentives for Apprentices
Apprentice Wage Subsidy
50% Wage Subsidy Incentives
As part of the Australian Government’s response to Covid-19, the government incentives for Apprentices stimulus package offered a 50% wage subsidy assistance for apprentices and trainees. This initiative ended on 30th June, 2022.
The Australian Government also announced the Completing Apprenticeship Commencements scheme which provides a 10% wage subsidy in the second year and a 5% subsidy in the third year for those who were previously eligible and receiving the Boosting Apprenticeship Commencement subsidy. More information is provided below.
Apprenticeships Incentives Program
Boosting Apprenticeship Commencements
The Boosting Apprenticeship Commencements (BAC) scheme is designed to support employers to engage more apprentices and trainees and was an integral part of the COVID-19 economic recovery plan.
Under the BAC scheme, employers of any size, location or industry were eligible for a Federal Government subsidy of 50% of the wages for a new apprentice or trainee employed from October 5th 2020, up to 30th June, 2022. The subsidy applies for a 12 month period from commencement of your apprentice or trainee and is up to a maximum of $7,000 per quarter.
For example, if your business put on an apprentice or trainee on any date between 5 October 2020 up until 30 June, 2022, you will be eligible to place claims for 12 months following the sign-up date.
Important Changes to Claims Process
From the 9th of April 2022, you will be required to submit your claims through an online portal with the Australian Government’s ‘Apprenticeship Data Management System’ (ADMS), which will require you to set up and link to your MyGovID account. More information can be found at AustralianApprenticeships.gov.au/About-ADMS
Or you can find more information here:
Government Stimulus Package
Completing Apprenticeship Commencements
For businesses registered for the apprentice wage subsidy:
The Completing Apprenticeship Commencements (CAC) scheme is an extension to subsidies for employers of apprentices or trainees who have previously registered for the Boosting Apprenticeship Commencements (BAC) 50% wage subsidy.
After 12 months of this support, employers are eligible to transition to the time-limited CAC subsidy for the second and third years of an apprenticeship.
Under the CAC, eligible businesses will receive a 10 per cent wage subsidy in the second year of an eligible apprenticeship, up to a maximum of $1,500 per quarter per person, and a 5 per cent subsidy in the third year of their training, to a maximum of $750 per quarter per person.
The BAC and CAC are available to businesses of any size, industry or geographic location.
Final claims for payment must be lodged by 30 June 2025.
As per the BAC claims, wage payment evidence must be provided.
Payment Summaries & Wage Evidence Requirements
Provision must be made for accurate and regular wage reporting through Single Touch Payroll, unless an exemption from the ATO has been granted.
Please visit the Australian Taxation Office website for further information about Single Touch Payroll.
More information can be found here Single Touch Payroll
Further Information on the Wage Subsidy
If your business is looking to or is currently employing apprentices or trainees, you can find more details on employment incentives available to you on the Australian Government Department of Employment, Skills and Education website.