Job creation is the name of the game in the Federal Governments recently announced JobMaker scheme and in particular their ‘Boosting Apprenticeship Commencement’ wage subsidy.

From JobMaker Hiring Credits to wage subsidies for trainees and apprentices, the two key questions to consider for businesses are:

  • Am I looking to take on more staff?
  • Can those staff members be trainees or apprentices?

The ‘Boosting Apprenticeship Commencements’ subsidies have a broad reach and targets new or recommenced apprenticeships employed after 5 October 2020.

It will be available to businesses of all sizes, industries and locations. There is no limit on how many opportunities your business can take up, however the program across the board is capped at 100,000 places in total.

What wage subsidies are available?

Employers will be able to receive subsidies for up to 50% of the wages of a new or recommencing apprentice or trainee. Subsidies can be up to the value of $7,000 per quarter and can be claimed until 30 September 2021.

Who is eligible?

You could be eligible for the subsidy if:

  • You engage an Australian apprentice/trainee between 5 October 2020 and 30 September 2021.
  • Your 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.

From 28 October 2020, your business may be eligible for a subsidy for up to 30 existing workers who start a non-trade Australian apprenticeship.

They may also be eligible for a subsidy on or after 28 October 2020 if they:

  • Move from casual employment to a part-time or full-time Australian Apprenticeship; or
  • Move from part-time employment to a full-time Australian Apprenticeship.

Who isn’t eligible?

  • The subsidy is not available for apprentices receiving other forms of Australian Government wage subsidy e.g. Supporting Apprentices and Trainees, JobKeeper or the JobMaker Hiring Credit.
  • Apprentices who were employed before 7 October 2020.

What types of Apprenticeships and Traineeships are available?

There a large range of Apprenticeships and Traineeships to choose from. Referring to the Apprenticeship Support network in your state is a great place to start, and generally provide lists of courses for Certificate II and above training.

Just calling a staff member a trainee or an apprentice does not make them eligible. They must be registered for an apprenticeship or traineeship with a suitable provider.

How are payments made?

Payments will be made quarterly in arrears, with first claims for the subsidy available from 1 January 2021. Final claims for payment must be lodged by 31 December 2021.

How to apply. 

If your business is eligible and you wish to hire an apprentice or trainee and apply for the subsidy, you can choose to engage a Group Training Organisation (GTO) or apply yourself.

To apply yourself, you need to complete the ‘Boosting Apprenticeship Commencements Registration Form’ during sign up of a new Australian Apprentice.

For more information, check out the state based websites below.

ACT          NSW           NT           QLD 

SA             TAS             WA          VIC

Seek Assistance from DFK Gooding Partners and GPHR. 

  • Need help with identifying gaps in your organisational structure that could be filled with an apprentice or trainee?
  • Do you want to convert a casual staff member to permanent? Or a part-time staff member to full-time in order to take advantage of this fantastic subsidy?
  • Does it all sound good but seem like a lot of work? We can help with that.

What to know more? Contact DFK Gooding Partners or our HR Consulting team at GPHR  on 08 9327 1777.