Apprentices: incentive scheme overhauled in Budget 2022

In the face of skills shortages and to boost employee retention, the federal government has said it will funnel $2.8 billion into an overhauled apprenticeship incentive scheme, which subsidises the wages of select apprentices and trainees.

From July 1, 2022, the Australian Apprenticeships Incentive System will provide wage subsidies to businesses that take on trainees in priority fields.

Employers will be eligible to claim up to $4,500 in the first year of the system and hiring incentives will also be made available for firms that employ apprentices in “non-priority” occupations.

The Coalition says it will furnish priority apprentices with $5,000 in training support payments, split into half-yearly instalments over two years.

According to Minister for Employment, Workforce, Skills, Small and Family Business, Stuart Robert, “As the new system matures, it will shift to supporting occupations in demand or skills need, with a hiring incentive of up to $4,000 to be provided for employers in priority occupations, as well as a new Australian Apprentices Training Support Payment of up to $3,000 paid directly to apprentices in priority occupations.”

What fields qualify as “in demand” will be determined by a new Australian Apprenticeships Priority List, which will account for both current and expected future demand. That list will be based on findings from the National Skills Commission, and will be updated annually.

New system

The proposed system will replace the Boosting Apprenticeships Commencements (BAC) and Completing Apprenticeship Commencements programs, which subsidises half of an eligible apprentice’s wages in their first year of employment, up to $7000 a quarter.

Sign-ups to these programs were last week extended by three months to the end of June 2022.

Date published 30 Mar 2022