To assist with the recovery from the impact of COVID-19, the Australian Government announced two important programs as part of the recently announced 2020 Federal Budget. These programs were handed down with the intention of making it easier for businesses when hiring young job seekers, apprentices & trainees through incentives that reduce the wages paid by the employer. These schemes include:
- Boosting Apprenticeship Commencements; and
- JobMaker Hiring Credit.
We asked our friends at Allara Learning to provide some more detail around the proposed measures and how a business looking to hire apprentices or trainees can access the subsidies.
Boosting Apprenticeship Commencements; A subsidy for hiring apprentices & trainees
Under the new ‘Boosting Apprenticeship Commencements’ subsidies program, businesses of any size that take on a new Australian apprentice or trainee will qualify for a 50% wage subsidy on the wages paid to the apprentice or trainee.
Is my business eligible?
Your business may be eligible if:
- you engage an Australian Apprentice between 5 October 2020 and 30 September 2021; and
- your Australian Apprentice or trainee is undertaking a Certificate II or higher qualification and has a training contract that is formally approved by the state training authority.
How much is the subsidy?
- Eligible employers will receive a wage subsidy of up to 50 per cent of the Australian Apprentice’s gross wage paid;
- The wage subsidy is available for a maximum of $7,000 per quarter per eligible Australian Apprentice;
- The subsidy is available for wages paid from 5 October 2020 to 30 September 2021.
Anything else I should know?
- The subsidy is available to employers of any size, industry, or geographic location;
- The subsidy is capped at 100,000 places;
- There is no limit per employer. Employers can receive a subsidy under Boosting Apprenticeship Commencements for any number of apprentices or trainees, provided they meet the eligibility criteria. However, your Australian Apprentices must be one of the first 100,000 who commences or recommences on or after 5 October 2020 and registers for the subsidy.
JobMaker Hiring Credit; An incentive for hiring young job seekers
The JobMaker Hiring Credit is a new government incentive for businesses to create opportunities and employ additional young job seekers as the economy starts to recover.
Eligible employers will have access to a JobMaker Hiring Credit for each new job they create over the 12 months from 7 October 2020, for which they hire an eligible employee, for a maximum claim period of 12 months from their employment start date.
How much is the credit?
The JobMaker Hiring Credit will be:
- $200 per week for each eligible employee aged 16 to 29;
- $100 per week for each eligible employee aged 30 to 35.
An employer cannot claim JobKeeper and the JobMaker Hiring Credit at the same time.
How can I apply or find out more?
Are looking for more information about the changes including what subsidies may be available to you, how to apply for the subsidy, or information on eligibility, speak to the team at Allara Learning for a confidential discussion today.
You can also contact the team at Employment Innovations for advice and support on navigating the constantly changing employment landscape. Our HR Representatives are available for a confidential 1:1 consultation on 1300 144 120.
About Employment Innovations
Employment Innovations is one of Australia’s leading providers of employment services designed to increase productivity and ensure compliance. Its services and solutions include all the tools that every Australian small to medium sized employer needs – including workplace advice, legal services, payroll solutions, migration, human resource management and HR software.
The information provided in these blog articles is general in nature and is not intended to substitute for professional advice. If you are unsure about how this information applies to your specific situation we recommend you contact Employment Innovations for advice.