Apprenticeships System provides support for business
Australian Apprenticeship Incentive Scheme payments to be adjusted
A 2024 Federal Budget announcement will provide additional support for businesses who participate in the Australian Apprenticeships Incentive System after 1 July 2024.
An announcement from the 2024–25 Federal Budget will provide an increase in payments that were otherwise going to be paid to apprentices in a priority occupation experiencing a national skills shortage and their employers.
Beginning on 1 July 2022, the Australian Apprenticeships Incentive System was introduced to provide a more inclusive and sustainable economy, by ensuring apprentices, trainees and employers benefited from the system.
Under these guidelines:
full-time apprentices are eligible for $5,000 over 2 years in government payments, and
employers are eligible for up to $15,000 over 3 years, based on how much the apprentice is paid.
This system was due to change for apprenticeships that commenced after 1 July 2024. Under the 2024–25 Federal Budget announcement, these Phase Two payments will be increased. If an apprentice is employed after 1 July 2024, the following government incentives will be available:
$5,000 for full-time apprentices, and
$5,000 for employers.
A significant opportunity may exist to hire a new apprentice prior to the end of the original scheme on 30 June 2024. This outcome may allow the employer to receive the higher amount of 10 per cent of an apprentice's gross wage up to a maximum of $1,500 per quarter over the first 2 years, followed by 5 per cent of gross wages for the third year (up to $750 per quarter).
If you wish to understand more about the scheme, please do not hesitate to contact our office. To find out if you are eligible for the scheme, go to the Department of Employment and Workplace Relations website here.
BE THE FIRST TO KNOW
Subscribe to receive future reports.
Complete the form below to receive timely and insightful information directly to your inbox.
