Apprentices & Trainees wage subsidy $1.5 billion boost

A further $1.5 billion has been committed to expand and extend the federal government’s Supporting Apprentices & Trainees Wage Subsidy Scheme as a powerful incentive to help keep apprentices and trainees in work.

The initial $1.3 billion package announced in March 2020 has been instrumental in enabling many small businesses within the City of Melton to hold onto apprentices and trainees and continue their skill development.

The initiative covers 50% of the wages paid to apprentices and trainees, up to $7,000 per quarter.

The expansion

In addition to the small businesses already covered, the wage subsidy will now be available to medium sized businesses with less than 200 employees for any apprentices employed by them as at 1 July 2020.

Around 180,000 apprentices and 90,000 small and medium businesses in Australia that employ them will now be supported.

The extension

The original $1.3 billion package was scheduled to cease at the end of September.

The injection of the additional $1.5 billion into the program means all eligible City of Melton businesses currently receiving the subsidy can plan to have access to this funding all the way through to the end of March 2021.

The Eligibility Criteria

Subsidies will also be available to any new employer who re-engages an eligible apprentice displaced by an eligible small or medium sized business.

Your small business may be eligible if:

• you employ fewer than 20 people; or

• you are a small business with fewer than 20 people, using a Group Training Organisation; and

• the apprentice or trainee was undertaking an Australian Apprenticeship with you on 1 July 2020 for claims after this date.

• Claims prior to 1 July 2020, will continue to be based on the 1 March 2020 eligibility date.

Your medium-sized business may be eligible if:

• you employ fewer than 200 people; or

• you are a medium business with fewer than 200 people, using a Group Training Organisation; and

• the apprentice or trainee was undertaking an Australian Apprenticeship with you on 1 July 2020.

Any employer (including all small, medium or large businesses and Group Training Organisations) who re-engages an apprentice or trainee displaced from an eligible small or medium business may also be eligible for the subsidy.

Claims from small businesses are now open. Claims from medium-sized businesses will open on 1 October 2020.

For further information on how to apply for the subsidy, including information on eligibility, contact an Australian Apprenticeship Support Network provider. Alternatively, download this fact sheet from the Department of Education, Skills and Employment.

Peter Forbes
Industry & Development Officer