Apprentice and trainee incentives unpacked
There is a raft of financial supports for employers looking to take on a trainee or apprentice. We outline the key incentives you should know about.
Federal Government incentives: up to $9000
Most businesses can earn up to $1500 as a commencement payment at six months of a new apprenticeship, and $2500 on successful completion of the apprenticeship — so $4000 in total. Up to $5000 more can be earned where the apprentice is working in a rural and regional postcode, is 21-years-old or older at commencement, and is working in a skills-shortage occupation.
Payroll tax exemptions: up to 6.5%
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 the employer 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.
Jobs and Skills WA Employer Incentive: up to $8500
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, those aged 21 to 30, or undertaking qualifications on the so-called State Priority Occupation — or living and working in regional WA. The subsidy can be claimed if your business is ineligible for payroll tax exemptions or Construction Training Fund grants. The apprentice must live and work in WA.
Jobactive grants: 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 and long-term-unemployed job seekers.
Construction Training Fund: up to $25,000
Businesses can access grants and subsidies for employing apprentices and trainees working in WA’s construction industry. Through the Construction Training Fund, employers can 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.
Defence Industry Incentive for Employers: up to $20,000
Employers (including Group Training Organisations) 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.
For more information on any of the subsidies available to you, contact Apprenticeship Support Australia on 1300 363 831 or email [email protected].