The Federal Government has announced it will further extend the Boosting Apprenticeship Commencement’s (BAC) wage subsidy to the end of the 2021-22 financial year (30 June 2022), providing eligible employers with a 50% wage subsidy for 12 months
This is a massive boost to businesses across Australia with many companies taking up the funding to give a young person a job. Since the funding scheme was launched, over 73,000 businesses have accessed the funding.
Here’s what you need to know:
What is Boosting Apprenticeship Commencements?
Boosting Apprenticeship Commencements is a Government Wage Subsidy to encourage employers of any size or industry, Australia-wide, to take on apprentices and trainees.
How much funding will you receive?
The scheme provides a subsidy to you of 50% of the wages paid to an eligible apprentice/trainee who commences their apprenticeship or traineeship up until 30 June 2022 to a maximum of $7,000 per BAC quarter.
Is your business eligible?
Your business may be eligible if:
- you engage an Australian Apprentice or Trainee before June 30 2022; and
- your Australian Apprentice or Trainee is undertaking a Certificate II or higher qualification and has a training contract that is formally approved by the state training authority.
Who is not eligible?
The Australian Apprenticeships Incentives Program Guidelines identify that the following entities are not eligible for BAC:
- Australian Government Entities
- State Government Entities (an exclusion applies if they are a statutory authority, statutory body or a body corporate)
To find out more about the BAC extension, you can read the media release here
How much is the subsidy?
Eligible employers and Group Training Organisations will receive a wage subsidy of up to 50 per cent of your Australian Apprentice’s gross wage paid;
- The wage subsidy is available at a maximum of $7,000 per quarter per eligible Australian Apprentice or Trainee
- The subsidy remains available to employers of any size or industry, Australia-wide who sign up an Australian apprentice or trainee before 30 June 2022.
When do I need to hire a trainee to be eligible for the funding?
Trainees or apprentices need to be signed up by 30 June 2022 for businesses to be eligible for the funding. The great news is that the funding is not capped!
Are Existing Workers Eligible?
An existing worker will only attract the Boosting Apprenticeship Commencements payment for an employer, where the existing worker:
- Commences in a trades-based Australian Apprenticeship; or
- Transfers from a casual employment arrangement to a part time or full-time Australian Apprenticeship; or
- Transfers from a Part time employment arrangement to a full time employment arrangement
In addition, a maximum of 30 existing worker Australian Apprentices per ABN can attract BAC if they meet the above criteria. It is important to note however, there is no limit for trades-based Australian Apprenticeship BAC commencements.
Key dates to know
- Payments will be made quarterly in arrears
- Final claims for payment must be lodged by 31 December 2022.
Anything else I should know?
The subsidy is not available for any Apprentice or Trainee receiving any other form of Australian Government wage subsidy e.g. Supporting Apprentices and Trainees or JobKeeper.
Want to know more
For further information on how to apply for the subsidy, contact Lisa Diekman, RTO Manager at email@example.com
More information about the incentives is available on the Australian government website: www.australianapprenticeships.gov.au
Together we can create more opportunities for young people across Australia so they can have the opportunity to get experience in the workforce, get up-skilled and gain meaningful employment.