The Federal Government has announced financial support for small to medium-sized businesses to improve business confidence. The wage subsidy will help continue development of the skilled workforce.
The government anticipates the wage subsidy for apprentices and trainees will support up to 70,000 small businesses, employing around 117,000 apprentices and cost $1.3 billion across 2019-20 and 2020-21.
Wage subsidy for apprentices and trainees
The wage subsidy is to support small business to retain their apprentices and trainees. Employers that meet the eligibility criteria can apply for a wage subsidy of 50% of the apprentice or trainee’s wage, paid during the 9 months from 1 January 2020 to 30 September 2020.
Employers will receive a reimbursement per eligible apprentice or trainee up to a maximum of $21,000 ($7,000 per quarter).
If a business is not able to retain an apprentice or trainee, the wage subsidy will be available to a new employer.
Alternatively, any displaced apprentices or trainees will be supported to find re-employment through The National Apprentice Employment Network using their network of host employers across Australia.
What is the eligibility criteria?
There are three requirements for an employer to be eligible and receive the wage subsidy:
- An employer with an apprentice or trainee must have less than 20 full-time employees
- The apprentice or trainee must have been in training with the small business as at 1 March 2020
- The employer must complete an eligibility assessment undertaken by an Australian Apprenticeship Support Network (AASN) provider – including Apprenticeships Support Australia.
The wage subsidy will also be available for any employer or Group Training Organisation that re-engages an eligible out-of-trade apprentice or trainee.