Apprentice Commencement Wage Subsidy program receives boost as caps lifted

The Morrison Government has confirmed that the Boosting Apprenticeship Commencements wage subsidy program, which is currently fully subscribed, will be extended for twelve months and transition to a demand driven model where caps will be lifted.

The program was initially launched to incentivise businesses to take on new apprentices and trainees in the wake of the COVID-19 pandemic as a means to drive employment and economic growth going forward and is in addition to the existing Supporting Apprentices and Trainees wage subsidy. 

However, there was a cap of 100,000 applicants only, so many eligible businesses were not able to draw on the subsidy because the cap had been reached. 

This latest announcement removes the 100,000 cap and effectively opens up the subsidy program to all currently eligible businesses who wish to participate and receive a 50 percent wage subsidy of a commencing trainees wages paid up to a maximum of $7,000 per quarter. 

An eligible business is defined as:

• Those that have engaged an Australian Apprentice or trainee between 5 October 2020 and 30 September 2021;
• and where the Australian Apprentice or trainee is undertaking a Certificate II or higher qualification and has a training contract that is formally approved by the state training authority.

The final date for new entrants into the program remains the same, 30 September 2021, and eligible businesses will be able to claim for a twelve month period.  

his development is likely to be well received by the Early Childhood Education and Care sector which has been struggling to date with workforce shortages compounded by a pick up in demand and a shift in the mix of the ECEC workforce post COVID-19 currently available. 

To learn more about the Boosting Apprenticeship Commencements wage subsidy program please click here.