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Nov 07
Apprentice wage subsidy for employers

Apprentice wage subsidy for employers

  • November 7, 2018
  • Katia Slogrove
  • 4 min. to read, Apprenticeships, Industry Update, News

The minister for Small and Family Business, Skills and Vocational Education, Michael Cash, has announced support for rural and regional businesses with an Apprentice wage subsidy trial starting 1 January 2019.

What is the Australian Apprentice Wage subsidy?

By offering financial support to employers, the Australian Apprentice Wage subsidy aims to increase the number of qualified personnel (through the Apprenticeship pathway) in rural and regional areas for skills listed on the National Skills Needs List.

 What financial support is available to employers?

The Australian Apprentice Wage Subsidy provides support in the first three years of an Australian Apprenticeship.

Year of Apprenticeship Subsidy
Year one 75% of award wage
Year two 50% of award wage
Year three 35% of award wage

For example, The Fair Work Ombudsman suggests that a Carpentry Apprentice in the 1st year of their three year apprenticeship, working full time would be on $826.27 per week.[1]

That’s a salary of $42,966.04.

Under the Australian Apprentice Wage subsidy, the Employer might receive:

  • $32,224.53 in the first year
  • $21,483.02 in year two and,
  • $15,038.114 in the third year of the Apprenticeship*.

Note: These figures are an example only. *Employer subsidy is subject to eligibility criteria.

Who is eligible for the Australian Apprentice Wage Subsidy?

Beginning January 1 2019, Employers who employ a new worker under an Australian Apprenticeship, undertaking a full-time Certificate III or IV level qualification that leads to an occupation listed on the National Skills Needs List,  in a rural or regional workplace.

The Apprentice must be employed under the relevant Award (modern award) for their occupation and the employer must not have previously employed an Australian Apprentice in the three years previous to January 1, 2019.

The employer must also meet the additional eligibility requirements under the Australian Apprenticeships Incentives Program.

Click here to find out if you are considered a rural or regional employer.

What skills fall under the National Skills Needs List

Foundation Training Australia offer qualifications in:

  • Carpentry
  • Landscape Construction
  • Painting
  • Tiling

All of these skill sets are included on the National Skills Needs List. Click here to find out more about our qualifications.

[1] https://www.fairwork.gov.au/awards-and-agreements/awards/award-summary/ma000020-summary

Are you eligible for funding?

Find out if you are eligible for the Australian Apprenticeships Incentives Program.
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