Written by Nicola Brazier of YBM
The government announced apprentice and trainee subsidies as part of its original economic response to COVID-19. This has been extended and expanded in the federal budget announcement, potentially opening the door for the employment of many people across a wide range of industries.
Initially, the apprentice and trainee support was only available for small businesses who had an apprentice in place on 1 July 2020. This has been expanded to include more businesses and include new apprentice or trainee positions. The initiative now includes medium-sized businesses employing fewer than 200 people. Eligible employers will be reimbursed 50% of the apprentice’s gross wages, from 1 July 2020 to 31 March 2021, up to $7,000 per quarter. Expansions to this initiative also cover the re-engagement of an apprentice who was displaced from an eligible small or medium business.
Significantly, the federal budget announcement saw 50% subsidies also introduced for new apprenticeships or traineeships, under the banner of Boosting Apprenticeship Commencements. Businesses (and Group Training Organisations) are eligible if they engage an Australian apprentice or trainee between 5 October 2020 and 30 September 2021, and if the apprentice or trainee is undertaking a Certificate II or higher qualification and has a training contract formally approved by the state training authority. Subsidies are again calculated at 50% of gross wages paid to a maximum of $7,000 per quarter.
Importantly, the Boosting Apprenticeship Commencements scheme is capped at 100,000 places. With it being available to employers of any size, industry or location, places may be snatched up quickly.
Get in touch!
If you would like to take advantage of this subsidy, it may be better to apply sooner rather than later. Please don’t hesitate to contact us if you have any questions.
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Yates Baker McLean. Accountants and Business Advisors situated in the Central West of NSW.
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