Australian Apprenticeships Incentive Program (AAIP) 

The Australian government is committed to supporting the development of a skilled workforce across the country. They provide a range of financial incentives and benefits to employers and Australian apprentices. 

The goal of the Australian apprenticeship incentive program is to train highly skilled talents and the relevant Australian workforce that supports economic sustainability and competitiveness. 

This is done by encouraging: 

• provide employees with real opportunities for skill based training and development 
• people receive skills training through the Australian apprenticeship program. 

The Australian apprenticeship incentive scheme consists of a series of payments. 

Boosting Apprenticeships Commencements 

Boosting Apprenticeship Commencements is a government wage subsidy to encourage employers of any size or industry, Australia-wide, to take on new apprentices and trainees. To help recover from the impact of covid-19, the Australian government is supporting all qualified employers who hire new Australian apprentices. 

The following are snapshots that an enterprise may be eligible for: 

• Worker's compensation exemption 
• Additional incentives to help disabled people, adults, school students and Aboriginal Australians find employment 

The Australian government announced the boosting apprenticeship commencements wage subsidy to support employers and group training organizations to accept new apprentices and interns. 

Identify whether your busines eligible 

Your business or group training organization may be eligible if: 

• you hired an Australian apprentice between 5 October, 2020 and 31 March, 2022, and 
• your Australian apprentice or intern is obtaining a level II Certificate or higher and has received training contracts officially approved by national training institutions. 

How much is the subsidy? 

• Eligible employers and group training organizations (GTO) will receive a wage subsidy of up to 50% of the total wages of apprentices in Australia. 
• The subsidy applies to Australian apprentices who start or restart between 5 October, 2020 and 31 March, 2022. 
• For wages paid within 12 months from the start or restart date, each eligible Australian apprentice can receive a wage subsidy of up to $7000 per quarter. 

Other Information You should know 

• The subsidy applies to employers of any size, industry or geographical location. 
• Any apprentice who receives any other form of Australian government salary is not subsidized, eg. Subsidies Support Apprentices and Trainees or Jobkeeper. 
• Arrears will be paid quarterly and subsidies can be applied for the first time from 1 January, 2021. 
• The final payment application must be submitted before 30 June, 2023. 
• 100000 caps were removed to provide additional support to employers and GTOs. 
• The Australian apprentice support network will provide additional gateway service places and enhance 
• Provide training support for women interested in non-traditional trade occupations or starting internships. 
• an additional 5000 gateway service places are available to women interested in internships in non-traditional trade occupations. 
• provide training support services for women in non-traditional trade occupations. 

What are the changes in the qualifications of existing workers? 

From 28 October, 2020, employers or host employers (if using group training organizations) will be eligible for subsidies for up to 30 existing workers in the following cases: 

• transfer of existing workers from temporary employment arrangements to part-time or full-time Australian apprenticeships; perhaps 
• existing workers move from part-time employment arrangements to full-time Australian apprenticeships. 

There will be no change in the starting work of existing workers under the Australian Trade apprenticeship system. 

What if existing workers who do not meet the revised qualification criteria have started work? 

Australian apprentices with an approved training contract starting from 5 October to 27 October 2020 will be eligible to attract subsidies for their employers as long as all other eligibility criteria are met. The revised qualification is only applicable to classes after 28 October, 2020. 

What about apprentices starting before October 5, 2020? 

Apprentices who start before October 5, 2020 will not be eligible to promote apprenticeship because the purpose of the subsidy is to promote the growth of new beginnings. However, the government does provide a range of other incentives to employers and Australian apprentices to support recruitment and encourage their participation in the Australian apprenticeship system. Through the Australian apprenticeship incentive scheme, eligible employers can attract economic incentives for the start and completion of the Australian apprenticeship scheme. The plan also includes a series of targeted incentives for national priority areas and skills needs, and supports employers and Australian apprentices in rural and remote areas of Australia. 

Employers who is apply for Boosting Apprenticeships Commencements are also eligible for other payments under the Australian Apprenticeship Incentive Program, on the premise of meeting the qualification criteria, employers and group training organizations that have obtained boosting apprenticeship incentives may be eligible for other awards under the Australian Apprenticeship Incentive Program (AAIP). 

Chang Accounting Advisory Pty Ltd, we are CPA practice and NDIS registered plan manager, we could help clients to apply for the subsidy of boosting apprenticeships commencements. If you or your families or friends need our services, please feel free to contact our team for any assistance. 

This article is for informational purposes only and does not form part of our advice. This article is based on NDIS guideline. Please contact our team if you need any assistance. 

Claire Chang, 0497 131 419, claire.chang@changadvisory.com.au, wechat: clairechang26 

Michelle Cui, 0433 539 870, michelle.cui@changadvisory.com.au, wechat: michellejc