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Financial incentives to hire Australian apprentices

08 August 2022

The Australian Apprenticeships Incentive System helps foster an inclusive and sustainable economy, ensuring Australians receive quality training while in employment.

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The Incentives System supports apprenticeships on the Australian Apprenticeship Priority List through a wage subsidy for employers and financial support to apprentices in priority occupations.

Employers of occupations not on the priority list will be eligible for a hiring incentive.

The Incentives System also includes disability support and a living away from home allowance for those who are required to move away from home for the role.

The Incentives System sits alongside a suite of other financial and non-financial supports that are designed to support apprenticeships, such as the Australian Apprenticeship Support Network to help people considering undertaking an apprenticeship, or considering hiring an apprentice, understand and navigate the apprenticeship system and in-training support.

The Incentives System complements the Trade Support Loans program, which provides access to income contingent loans for apprentices to help with the cost of living.

The Incentives System replaces the Australian Apprenticeships Incentives Program, which includes the Boosting Apprenticeship Commencements and Completing Apprenticeships Commencements measures.

The Australian Apprenticeships Incentives Program will continue to support Australian Apprentices who commenced or recommenced prior to 1 July 2022 through grandfathering arrangements that will continue a range of standard and targeted support.

The incentive/benefit breakdown for new and recommencing Australian apprentices includes:

Wage subsidy for employers of Australian Apprentices in Priority Occupations

The Priority Wage Subsidy is paid for a maximum of three years at the rate of: 10 per cent of wages paid for the first year (up to a maximum of $1,500 per quarter); 10 per cent of wages paid for the second year (up to a maximum of $1,500 per quarter) and; 5 per cent of wages paid for the third year (up to a maximum of $750 per quarter).

Payments are made in arrears, with the first payment payable to eligible employers three months after commencement, followed by quarterly payments thereafter.

The incentive is available for employers of new or recommencing Australian Apprentices undertaking a Certificate III or higher qualification in a Priority Occupation on the Australian Apprenticeship Priority List. Priority List can be found here.

Hiring incentive for employers of Australian Apprentices not in a Priority Occupation

Full-time apprentices will attract $3,500. Payments will be made in two equal instalments of $1,750, payable at six and 12 months from the date of commencement or recommencement with the employer.

Part-time apprentices will attract $1,750. Payments will be made in two equal instalments of $875, payable at six and 12 months from the date of commencement or recommencement with the employer.

The incentive is available for employers of new or recommencing Australian Apprentices undertaking a Certificate II or higher qualification in an occupation that is not on the Australian Apprenticeship Priority List. The Priority List can be found here.

Disability Australian Apprentice Wage Support (DAAWS)

This offers $104.30 per week for a full-time Australian Apprentice, and on a pro-rata scale according to hours worked for a part-time Australian Apprentice.

It provides additional assistance to employers who employ an Australian Apprentice with disability in a Certificate II or higher level qualification.

Off-the-job Tutorial, Mentor and Interpreter Assistance

This offers $38.50 per hour (up to a maximum of $5,500 per year).

Assistance for Tutorial, Mentor and Interpreter Services is available to Registered Training Organisations to support Australian Apprentices with disability who are experiencing difficulty with the off-the-job component of their Australian Apprenticeship because of their disability.

More information

Apprenticeship Support Australia (ASA) delivers skills development advice and solutions to employers and jobseekers across the country. The Victorian Chamber delivers ASA services in Victoria. Since 1998, we have partnered with more than 70,000 businesses and signed up more than 200,000 apprentices and trainees through our Australian Apprenticeship Centre.

Contact us here for expert guidance about employing or becoming an apprentice or trainee.

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