Hiring an Australian apprentice could be beneficial in the long run for both the business and the trainee. At first, it may seem that getting an unskilled or mildly skilled employee in your well-sought-out business might be a hindrance. But, it’s not!
For employers looking to hire apprentices, here is something that might light up the financial side of your organisation!
Financial Incentives for Employers
The Australian government supports, promotes, and pushes a range of employers to onboard and retain apprentices in their company. One remarkable incentive offered by the Australian government is:
Australian Apprentices Incentives Program
The program helps employers looking to hire apprentices to maintain and train an apprentice.
The program started in July 2020 and helped streamline and simplify the incentives program for employers seeking to hire trainees and apprentices.
Besides this, there’s another program for employers.
Boosting Apprenticeship Commencements
This is a wage subsidy support offered to the business and Group Training Organisations allowing them to hire more trainees and apprentices. This helps the companies build a smooth stream of skilled workers that enhances the country’s economy.
With this subsidy, all the Group Training Organisations and any Australian business are eligible to get a grant of about 50% wages paid to any existing and old trainees or apprentices.
The period for this apprenticeship program is 12 months post-commencement. The maximum amount offered is about $7,000 every quarter.
Once the 12 months are up, the employers can let the apprentices transit into the Completing Apprenticeship Commencements programs.
Completing Apprenticeship Commencements
This is a subsidy only offered to the employers when the apprentices are in the third and fourth year.
Under this subsidy, every employer is eligible to get a 10% wage subsidy in their 2nd year of suitable apprenticeship.
The maximum support offered goes up to $1,500 every quarter per apprentice. Additionally, a 5% wage subsidy is provided in the 3rd year of apprenticeship. The maximum amount offered is $750 per every quarter for every apprentice.
Both the Boosting Apprenticeship Commencements and Completing Apprenticeship Commencements are offered to employers regardless of their geographic location, size and industry.
Employers should book the payment for final claims by June 30, 2025.
Other Apprenticeship Programs
Besides the one mentioned above, there are a few others that an employer can avail. Let’s have a quick look at them:
1. Support for Adult Australian Apprentices
This is an incentive that is offered with the thought of boosting the skills of adult workers through the Australian apprenticeships.
One may be eligible to enrol for this program if:
- Undergoing through a part-time or a part-time Certificate III or IV qualification which leads straight to a listing given in the National Skills Needs List at the time of its commencement or renewal
- There is a receipt of actual wage offered by the employers given at the time of commencement or renewal, which might be equal to or greater than the National Minimum Wage.
The age of the adult must be 21 or older if the apprenticeship starts after July 2019 or over 25 if the commencement date is before July 2019.
2. Australian Apprentice Wage Subsidy
This is a trial offered to support apprenticeship to people in regional and rural area that needs to up-skill themselves.
This program is led in 2-phases. Plus, an apprentice needs to undertake a full-time certificate in either Certificate III or IV to qualify for an occupation under the Australian Apprentice.
The Australian employer can only receive this subsidy for one qualified apprentice that passes both phases.
Wrapping Up
It may seem like hiring an under-skilled employee might not add to your organisation, but the joy of training an apprentice is unparalleled.
Over that, a handful of government subsidies and incentives make hiring an employee a great add-on.
Ensure to explore all of them and have good luck hiring the choices apprentices for your program!
The plagiarism hirs are the names of the apprenticeship subsidies from the official Government of Australia site. These also appear on the end client’s own page.
Author: Steffy Alen
