Apprentice wage subsidy programs

Written by admin | 09/06/2022 12:05:46 AM

March 2022 announcement

The wage subsidy program intended to boost the number of new apprentices and trainees in the country has been extended by a further 3 months. The current wage subsidy will now run from 5 October 2020 to 30 June 2022. Any employer who hires a new apprentice or trainee during that time is eligible to receive a 50% wage subsidy for 12 months. The maximum claimable wage subsidy is $7,000 per employee per quarter.

Apprentice wage subsidy programs

Beginning on 18 March 2020, there has been a wage subsidy in place for apprentices and trainees as part of the overall economic response to the COVID-19 pandemic. Overall, there have been 4 major announcements based upon 2 core principles, being:

retaining apprentices and trainees during the downturn, and
hiring new apprentices and trainees to stimulate employment growth out of the downturn.

All announcements provide for a maximum subsidy for between 7 and 12 months, depending on when the apprentice or trainee was hired by the employer. The table below provides a snapshot of the wage subsidy programs in place, including final dates for applications.

Amount of wage subsidy

Employers who have eligible apprentices or trainees during the wage subsidy periods are entitled to receive 50% of the apprentice’s or trainee’s wage. The maximum wage subsidy that the employer can receive is $7,000 per quarter per eligible apprentice or trainee.

The wage subsidy is paid in arrears and employers need to apply through an Australian Apprenticeship Support Network provider.

Types of employers

The list of available wage subsidies relies on an employer meeting certain eligibility criteria. For the purposes of claiming a wage subsidy a:

small business employer employs fewer than 20 people, and
medium sized business is an employer that employs fewer than 200 people.

Timeline of apprenticeship wage subsidy programs since the beginning of the COVID-19 pandemic

Announcement	Length	Eligibility criteria
Supporting Apprentices wage subsidy
18 March 2020	Up to 9 months	Small business employer
	Beginning 1 January 2020 and finishing on 30 September 2020	Apprentice or trainee was employed as at 1 March 2020.
		Wages from 1 January 2020, meaning apprentices or trainees hired before that date would get 9 months of subsidies.
		Final claims for payment were due by 30 June 2021.
23 July 2020	9 months	Small business employer
	Beginning 1 July 2020 and finishing on 31 March 2021	Apprentice or trainee was hired between 1 March 2020 and 30 June 2020.
		Medium sized employer
		Apprentice or trainee was employed as at 1 July 2020.
		Final claims for payment were due by 30 June 2021.
Boosting Apprenticeship Commencements wage subsidy
6 October 2020	effectively 12 months	All employers
	Beginning 5 October 2020 and finishing 30 September 2021	Hire an apprentice or trainee during the identified period and become entitled to a wage subsidy up to finishing date.
		Apprentice cannot be receiving other Australian government wage subsidy, such as JobKeeper or Supporting Apprentices wage subsidy.
		Final claims for payment are due by 30 June 2023.
11 May 2021	12 months maximum	All employers
	Beginning 5 October 2020 and finishing 30 June 2022	Hire an apprentice or trainee during the identified period and become entitled to a wage subsidy for 12 months from commencement or recommencement of employment.
		Apprentice cannot be receiving other Australian government wage subsidy, such as JobKeeper or Supporting Apprentices wage subsidy.
		Final claims for payment are due by 30 June 2023.

During the period 18 March 2020 to 5 October 2020, an employer of any size had a limited window of eligibility to make a wage subsidy claim. To receive the subsidy, a medium or large sized employer was required to re-hire an apprentice who qualified under another employer but was let go because of the shutdown.

Interaction with other apprenticeship programs

These subsidies do not affect existing Australian Apprenticeships Incentives Program in place and operates on top of the existing program. The existing program gives an eligible employer between $750 and $4,000 for the hiring of an apprentice and additional payments when they meet certain milestones.

Payments are processed after the completion of claim SmartForms issued by the Government through an Australian Apprentices Support Network provider.

Suggested Actions

Clients that have previously employed apprentices or trainees should be informed about how to qualify for the Boosting Apprenticeships subsidy.

Source: CCH iQ

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