Apprenticeship wage subsidy program extended by one year
Prime Minister Scott Morrison has announced an additional $1.2 billion investment towards the apprentice wage subsidy program as well as extend its duration for another 12 months.
Under the Boosting Apprenticeship Commencements program, any business or group training organisation that engages an apprentice between 5 October 2020 and 30 September 2021 may be eligible for a subsidy of 50 per cent of wages paid to a new or recommencing apprentice or trainee for a 12-month period from the date of commencement, to a maximum of $7,000 per quarter.
Further, there is no cap on the number of eligible trainees/apprentices under the program.
The government said it will extend the program for a full 12 months for new apprentices and trainees signed up prior to 30 September 2021.
It is estimated the expansion will generate around 70,000 new apprentice and trainee places, with the government investing around $1.2 billion.
Prime Minister Scott Morrison said training and skills were at the core of the government’s response to the economic challenges presented by the COVID-19 recession.
“Creating jobs, generating economic opportunities and boosting the skills of workers right across Australia are at the heart of our National Economic Recovery Plan, as we build back from the COVID-19 recession,” the Prime Minister said.
“Last week’s National Accounts showed the comeback of the Australian economy is underway; however, many businesses still need support and it’s important our apprentices and trainees get opportunities to boost their skills and stay employed.
“With 100,000 new apprenticeship positions already snapped up, it highlights the confidence businesses have in the future of the Australian economy.”
“The Commonwealth government hit the right note with this initiative, with reports from around the country of unprecedented demand for new apprentices and trainees,” Ms Watson said.
“When the subsidy was announced, no one could have envisaged it having such a huge impact. In fact, it became a victim of its own success, with the 100,000 places exhausted well before the anticipated ending in September.
“This initiative helps give businesses the confidence to invest in training someone for four years and contribute to reducing the unemployment rate.”
Businesses can learn more about the Boosting Apprenticeship Commencements program by clicking here.