Commencements subsidy. Eligible employers can receive a subsidy of 50 per cent of a trainee’s gross wages for Australian Apprentices engaged between 5 October 2020 and 31 March 2022. The subsidy will pay up to $7,000 per quarter for wages paid for 12 months after commencement.
The Australian government is offering support to all the entitled eligible employers associated with Australian apprentices to recover from the adverse impact of Covid-19. This subsidy supports the employers, businesses, and Group Training Organisations to protect and retain the job opportunities of apprentices and trainees. This subsidy is also helpful to create a pipeline of skilled workers and also give sustainability to economic growth.
After 12 months of this subsidy, employers will be entitled to avail of Completing Apprenticeship Commencement wage or CAC for the second and third years of an apprenticeship. In the 2nd year, CAC will provide a 10 per cent wages subsidy to the eligible employer up to $ 1,500 per quarter per apprentice. In the 3rd year, they will get a 5 per cent subsidy of up to $750 per apprentice.
Employers are eligible to get BAC and CAC subsidies irrespective of size, industry, and geographical location.
A new incentive program for the employers and trainees, named Incentives for Australian Apprenticeship (IAA) is about to launch by replacing the Australian Apprenticeship Incentives Program (AAIP) from 1 July 2020 but due to the extension of Boosting Apprenticeship Commencement Wage to 31st March 2022, which is being announced in the 2021-22 Budget, the implementation of IAA got revised. The new date of commencement of IAA is now 1st July 2022.
For more information Boosting Apprenticeships
For any further information: BAC and CAC Wage Subsidies