The Government has announced in the lead up to the 2022 Federal Budget (29th March) that they will extend the 50% wage subsidy (up to $28 000) under the Boosting Apprenticeship Commencements initiative. The previous deadline of March 31 (this week) has been extended for another 3 months until June 30, 2022.
The Boosting Apprenticeship Commencements wage subsidy supports businesses and Group Training Organisations to take on new apprentices and trainees, to build a pipeline of skilled workers to support sustained economic recovery.
Through the wage subsidy, any business or Group Training Organisation that engages an Australian Apprentice between 5 October 2020 and 30 June 2022 may be eligible for a wage subsidy of 50 per cent of wages paid to a new or recommencing apprentice or trainee for a 12-month period from the date of commencement, to a maximum of $7,000 per quarter.
After 12 months of this support employers will be eligible to transition to the time-limited Completing Apprenticeship Commencements (CAC) wage subsidy for the second and third years of an apprenticeship. Under the CAC, eligible employers will receive a 10 per cent wage subsidy in the second year of an eligible apprenticeship, up to a maximum of $1,500 per quarter per apprentice, and a 5 per cent wage subsidy in the third year of their apprenticeship, to a maximum of $750 per quarter per apprentice.
The BAC and CAC are available to employers of any size, industry or geographic location.
Employers are encouraged to submit claims as soon as possible after the relevant claim period opens.
From 1 July 2020 the Australian Apprenticeships Incentives Program (AAIP) was scheduled to be replaced with a new, simplified and streamlined incentives program for employers of apprentices and trainees, the Incentives for Australian Apprenticeships (IAA). Implementation of the IAA has been delayed to 1 July 2022.
For more information read the Boosting Apprenticeships Commencements fact sheet.
For further information on how to apply for the wage subsidy, including information on eligibility, visit Australian Apprenticeships. or contact an Australian Apprenticeship Support Network provider.
Further help:
If you would like to apply for this subsidy, the Marsh & Partners team are able to provide advice and assist with your reporting obligations to the ATO through Single Touch Payroll.
If you would like to discuss this program or any other financial help your business may be entitled to, please contact us on (07) 3023 4800 or at mail@marshpartners.com.au.
You can find out more about working with Marsh & Partners here. As your Absolute.Account.Ability partner we’re on a mission to make your business life better. We’ll help you set goals for your business, devise an Action Plan to make them happen and meet with you regularly to ensure you stay on track.
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