Understanding Government Wage Subsidy for Apprenticeships
15th December 2021
Australian businesses who take on a new apprentice or trainee are now eligible for a 50 per cent wage subsidy with the Federal Government's Boosting Apprenticeship Commencements program.
A business and/or Group Training Organisations who takes on an Australian apprentice between 5 October 2020 and 31 March 2022 can apply for a wage subsidy of 50 per cent of the apprentice or trainee’s gross wage, paid for a 12-month period from the date of commencement, to a maximum of $7,000 per quarter.
Are TORGAS apprenticeships eligible for the Boosting Apprenticeships Commencements program?
Your business may be eligible if:
- you engage an Australian apprentice between 5 October 2020 and 31 March 2022, and
- your Australian apprentice or trainee is undertaking a Certificate II or higher qualification, and has a training contract that is formally approved by the relevant state training authority.
How much will be available to employers?
When you hire an apprentice through TORGAS, you can apply for a wage subsidy of 50 per cent of the commencing or recommencing apprentice or trainee’s gross wage paid for a 12-month period from the date of commencement between 5 October 2020 to 31 March 2022, to a maximum of $7,000 per quarter.
For example, for an apprentice earning $550 a week, your business could save $275 week, per apprentice, as this is covered in the wage subsidy.
Is there anything else I should know about the wage subsidy?
- The cap limit has been removed to provide additional support
- the wage subsidy is available to employers of any size, industry or geographic location
- this subsidy is not available for any apprentice receiving any other form of Australian Government wage subsidy e.g. supporting apprentices and trainees or JobKeeper
- payments are made quarterly in arrears, with first claims for the subsidy available from 1 January 2021
- final claims for payment must be lodged by 30 June 2023.
Hiring an apprentice is an effective way to manage your business and workload, contact us today and find out more.