Incentives

Financial assistance to help with the cost of building local skills in your business

In WA, employers can access a range of financial support from the Federal and State Governments.

Different bodies administer these incentives, and each has its own set of eligibility criteria.

Apprenticeship Support Australia administers the Federal Government’s Australian Apprenticeship Incentives and Wage Subsidies. And we can provide you with information and guidance on accessing the full range of support available.

Federal Government incentives

 Up to $9,000

Most businesses can earn up to $1,500 as a commencement payment at the six-month mark of a new apprenticeship.

A further $2,500 more is available on successful completion of the apprenticeship.

Additional loadings apply for the following circumstances:

$4,000 per year

If an employer takes on an apprentice on the National Skills Needs List and the apprentice 21 or older at commencement, they may be eligible to access an additional $4,000. The apprentice needs to be paid equal or greater to the national minimum award rate.

Up to approximately $5,400 per year

For employers taking on apprentices and trainees with a disability, employers can access this support instead of the standard Australian Apprenticeships Incentives. There is also additional support for tutorial assistance, mentoring and interpreter assistance.

Up to $7,000 per quarter

Due to the impact of COVID-19, the Federal Government announced a $1.2 billion measure to boost apprenticeship and traineeship commencements across Australia.

Any business that takes on an apprentice or trainee on or after October 5, 2020, is eligible to access this subsidy, provided they’re not in receipt of Job Keeper or equivalent wage subsidy.

Businesses can access up to 50 per cent of a new apprentice or trainees wages from October 5, 2020, until March 31, 2022. And there is an unlimited number of places now available.

The subsidy applies regardless of location, occupation, industry or business size.

Apprentices and trainees need to be undertaking a Cert II or higher qualification and be engaged in a formally approved training contract.

There is also a provision for existing workers to attain a trade-based qualification under this wage subsidy. Read the approved trade-based qualifications that can be undertaken by existing worker apprentices and trainees.

Note that employers are Payroll Tax Exempt for any trainees’ wages that are covered by the BAC wage subsidy in WA.

Up to $7,000 per quarter

The Federal Government has extended its SAT wage subsidy to support businesses during the pandemic.

The subsidy covers up to 50 per cent of your apprentice’s wages until March 31, 2020.

It is available to small and medium-sized businesses with fewer than 200 staff, which had an apprentice in place on July 1, 2020.

If you are an employer with less than 20 employees, you may be eligible to attain the wage subsidy for your apprentices active at March 1, 2020, for wages paid from January 1, 2020.

Some Apprentices can access a loan of up to $21,542 throughout the course of their apprenticeship, paid monthly. This can be used to assist with living and work costs. This is paid back through the tax system once earning over the wages threshold of $46,620.

WA State Government incentives

Up to $8,500

This incentive is available to employers of new trainees and apprentices.

Like the Federal Government incentives, additional loadings may apply where you hire from a target group, such as:

  • Aboriginal Australians
  • Aged 21 to 30 years old
  • Undertaking State Priority Occupation qualifications
  • Living and working in regional WA

You will be able to claim this subsidy if your business is ineligible for payroll tax exemptions or Construction Training Fund grants. And the apprentice must live and work in WA.

For employers that take on a displaced apprentice or trainee that was cancelled on or after 1 March 2020 and re-engaged before 30 June 2021, they may receive a bonus one-off payment. An employer can receive $6000 for an apprentice and $3000 for a trainee.

If an employer is looking for an out-of-trade apprentice or trainee, please contact the Apprenticeship Support Australia Gateway team and ask for candidates on the out-of-trade register.

Up to 6.5%

In WA, employers are exempt from paying payroll tax on all wages for their trade apprentices under an active approved training contract – including superannuation, allowances and fringe benefits.

In total, the exemption could save you between 5.5 and 6.5 per cent on the payroll tax over the duration of the full apprenticeship — depending on the tiered rate of payroll tax your business is paying.

Visit the WA State Government site for full details.

Industry-specific Support

Up to $25,000

Businesses can access grants and subsidies for employing apprentices and trainees working in WA’s construction industry.

You may be able to access up to $25,000 for apprentices and trainees working in onsite construction, installation or fabrication.

The funding is paid in instalments through the active Training Contract. Like other incentives, additional loadings apply if the apprentice is living and working in regional WA.

The Construction Training Fund and employers administer this can claim through their online portal.

Up to $20,000

Employers in the shipbuilding industry may be eligible to receive a $20,000 incentive, paid in increments throughout the training contract, for apprentices undertaking Engineering Fabrication, Engineering Mechanical, Electrotechnology and Industrial Electrician qualifications between October 1, 2020, to September 30, 2021.

If an employer is looking for an out-of-trade apprentice or trainee, please contact the Apprenticeship Support Australia Gateway team and ask for candidates on the out-of-trade register.

Up to $3,000

For those working towards becoming a Brickie, an additional $3,000 can be attained through a Bricklayers Apprenticeship through the Australian Brick and Block laying Training Foundation.

Other

Up to $10,000

Businesses may be eligible to receive a wage subsidy for employing someone registered with an employment service provider.

The position must be 20+ hours per week and ongoing.

The wage subsidy is available to employers who hire eligible:

  • mature-age – 50 years and over
  • Aboriginal Australian
  • youth – 15 to 29 years old
  • principal carer parent
  • long-term-unemployed job seekers

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