More apprentice wage support announced

The Federal Government has again expanded its apprentice wage support package to now also include new apprentices, in a move to create more jobs and incentivise businesses to take on and train up lesser skilled employees.

From today, October 5, 2020, businesses who take on a new Australian apprentice will be eligible for a 50 per cent wage subsidy, regardless of geographic location, occupation, industry or business size.

However, the incentive is capped at 100,000 places and will run from October 5, 2020 to September 2021 to a maximum of $7000 per quarter.

Previously, under the JobTrainer package and other wage support measures announced in March 2020, only businesses who already have apprentices on the payroll are eligible for the 50 per cent wage subsidy, which applies to each and every apprentice they employ.

Prime Minister Scott Morrison said apprenticeships are an important pathway to get young people into jobs and to ensure there is a skills pipeline to meet the future needs of employers.

“During this pandemic the Federal Government has been focused on supporting and creating jobs as well as identifying the skills we need in the economic rebuild,” Prime Minister Morrison said.

“Already 760,000 jobs that were either lost or reduced to zero hours as the COVID crisis hit, have come back into our economy. We want to continue to recover what has been lost and get young people into work.”

“Whether it’s the manufacturing, housing and construction, arts or mining sectors - this new wage subsidy gives businesses certainty to hire and provides a career path to aspiring, young tradies.”

The new package, which will cost $1.2 billion, builds on the existing $2.8 billion Supporting Apprentices and Trainees wage subsidy announced earlier this year.

Building and construction peak body, Master Builders Australia, has welcomed the extra support from the Government, saying the package will benefit young people and building and construction businesses.

“The confidence of building and construction businesses to take on apprentices has been further shaken by the COVID crisis and the Federal Government’s move help will sure up their commitment to invest in the future of their business and the future building industry workforce,” said Master Builders Australia CEO, Denita Wawn.

“We know that the building and construction industry takes substantially longer than the rest of the economy to recover from economic down turn and this 50 per cent wage subsidy will give confidence to our sector that it can sustainably continue training its future workforce.”

However, Wawn said more support is needed to improve demand and work within the construction industry, which has suffered a dramatic collapse in recent months.

“This $1.2 billion investment by the Government is undoubtedly good news but its effectiveness will be blunted without further stimulus to support and activate demand for building and construction services,” she said.

For more information on the new apprentice wage subsidy incentive, visit the Boosting Apprenticeship Commencements website.