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2.8 billion Funding Support for Training and Apprenticeship
3.5 minutes read
As the economy continues to recover from the effects of COVID, the Federal Government Budget announced a $2.8 billion expenditure over the next five years to support and assist companies through the Training and Apprenticeship incentive program. The objective of this assistance package is to empower businesses to aid in the recovery process while maintaining a skilled workforce.
A New Incentive System for Training and Apprenticeship
The Federal Government vowed to subsidize the wages of chosen trainees and apprentices to improve the present apprenticeship incentive plan while increasing qualified tradespeople. This implies that if your company hires an apprentice or trainee in a priority sector, you might be entitled to claim up to $4,500. While the new incentive structure will initially focus on converted industrial skills, during the second phase, non-priority occupations will also have a piece of the cake.
The plan is to refine and update the existing incentive payment, thus supporting businesses in their post-COVID recovery efforts while implementing a fresh national skills agreement between the state and territory governments. Once all the delicate details have been finalized, it “will transform the way all governments support vocational education and training by ensuring greater national consistency,” Robert claimed.
The New Incentive System and Benefits to Your Business
The Australian government offers several incentives to businesses, each with qualification conditions, waiting periods, and time constraints. These incentives range from $750-$4,000 and may also include exemption from Worker’s Compensation in some states.
The Various Payment Subsidies: The Breakdown
Australian Apprenticeships Incentive System (AAIS)
Rollout Date: 1 July 2022 – 30 June 2024
The new Australian Apprenticeships Incentive System (AAIS) will begin on July 1, 2022, building on the success of the Boosting Apprenticeship Commencement (BAC) initiative, which will end on 30 June 2022. Wage subsidies will be provided by the AAIS for priority occupations on the Australian Apprenticeship Priority List (AAPL). The AAPL will be based on a National Skills Commission review and will be revised annually.
Apprentices in Priority Occupations
10% of annual wages up to $1,500 each quarter for first- and second-year apprentices, and 5% for third-year apprentices up to $750 per quarter.
Regional and Remote Employers
An additional 5% of apprentice wages in the first year, 15% of wages in the first year, and up to $2,250 every quarter are subsidized. The percentage of salary in the second year will be $1,500 every quarter, with a maximum of $750 per quarter in the third year.
Employers who hire Australian Apprentices in a non-priority occupation will get a $3,500 incentive paid in two equal instalments of $1,750 each.
Australian Apprenticeships Incentive System (AAIS): Phase 2
Rollout Date: 1 July 2024
Employers who hire Australian Apprentices in a Priority Occupation are eligible for a $4,000 incentive scheme, with $1,000 paid six months after commencement and $3,000 spent 12 months after commencement.
Australian Apprentice employers may be entitled to government financial help for hiring, training, and retaining them.
Australia Apprenticeship Training Support Payment
Rollout Date: 1 July 2022 to 30 June 2024
Payment for Australian Apprenticeship Training Support
During the first two years of instruction, you will be eligible for $1,250 every six months, with a maximum payment of $5,000.
Living Away from Home Allowance
Support is provided for up to 12 months at the first-year rate of $77.17 per week, 12 months at the second-year rate of $38.59 per week, and 12 months at the third-year cost of $25 per week.
Trade Support Loans
Loans of up to $21,779 are available for the Australian Apprenticeship (2021-22). The government intends to amend the Trade Support Loans Act 2014 so that all Australian Apprentices are included on the Australian Apprenticeship Priority List.
Australia Apprenticeship Training Support Payment: Phase 2
Rollout Date – 1 July 2024
- Australian Apprentice Training Support Payment: $750 every six months over the first two years of the Australian Apprenticeship (up to $3,000).
- Living Away from Home Allowance: Up to 12 months of support at $77.17 per week for the first year; 12 months more at $38.59 per week for the second year; and another 12 months at $25 per week for the third year.
- Australian Apprenticeship Support Loans: Loans of up to $21,779 (2021-22) throughout the Australian Apprenticeship (subject to changes to the Trade Support Loans Act 2014).
Primary Roles and Responsibilities under the New Incentive System
- Make sure the apprentices are working and learning in the occupations specified in the contract.
- To plan, organize, and implement the Quality Apprenticeship Training in the company.
- The apprentices’ skills acquisition is monitored, assessed, and documented.
- Provide leadership and coordination for the Quality Apprenticeship program with other sections and workers in the organization, as well as external partners.
- Whenever possible, seek out mutual agreement to resolve conflicts, and if that cannot be resolved, adhere to the existing dispute resolution procedure.
- Take particular care of apprentices with learning difficulties, disabilities, and other limitations.
- Ensure a safe working environment for apprentices.
Do you require any of the following assistance?
- Facilitation of Recruitment
- Retention of Trainee Apprentices
- Mentoring program for employee and individual training
Please do not hesitate to contact our amazing Catalyst Central team: firstname.lastname@example.org.