The Federal Government introduced the Boosting Apprenticeship Commencements (BAC) scheme to assist employers to engage apprentices in their workplaces.
The BAC will close on 30 June 2022, however where an employer has engaged an apprentice under the BAC, they may transition to the Completing Apprenticeship Commencements (CAC) wage subsidy for the remainder of their apprenticeship.
If you have engaged or intend to engage an apprentice or trainee in the period between 31 March 2022 and 30 June 2022, your business may be eligible for a subsidy of 50% of the apprentice’s gross wages. The subsidy is for a maximum of $7,000 per quarter, per eligible apprentice, for wages paid in their first 12 month period of employment from the date of commencement.
To be eligible, the apprentice or trainee must be undertaking a Certificate II or higher qualification and has a training contract that is formally approved by the relevant State Training Authority.
The ongoing subsidy will apply to employers who have received the entire subsidy of the BAC (12 months). Such employers can apply to transition to the CAC.
Under the CAC, a wage subsidy of 10% will be paid to the employer for each eligible apprentice in their second year, up to a maximum of $1,500 per quarter (per apprentice).
Further, under the CAC a wage subsidy of 5% of will be paid to the employer for each eligible apprentice in their third year, up to a maximum of $750 per quarter (per apprentice).
Australian Apprenticeships Incentive System (AAIS)
If employers have missed out on the BAC or wish to engage further apprentices after 30 June 2022, there is another subsidy scheme which will commence on 1 July 2022.
The Australian Apprenticeships Incentive System (AAIS) in its first phase will run from 1 July 2022 to 30 June 2024. The AAIS will provide broad support to the economy through wage subsidies for eligible employers in priority occupations under the Australian Apprenticeship Priority List.
Hiring incentives will also be available for employers of apprentices undertaking a qualification in an occupation that does not qualify for the Australian Apprenticeship Priority List.
From 1 July 2024, following a checkpoint to assess progress, support will be available for priority occupations only, through a mix of employer and apprentice payments, including a hiring incentive for employers; and training support payments for apprentices.
The subsidies available between 1 July 2022 and 30 June 2024 are set out below:
From 1 July 2024, the AAIS will provide the following for apprentices in priority occupations only:
Further information on the apprentice subsidy schemes in this article can be obtained by following the below links:
For assistance, please contact your usual Mazars adviser, or alternatively one of our experts via the form below or on:
Author: Cheryl-Anne Laird
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