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Boosting Apprenticeship Commencements (BAC) Wage Subsidy – Extension Update

Boosting Apprenticeship Commencements (BAC) Wage Subsidy – Extension Update

To assist with the recovery from the impact of COVID-19, the Federal Government is providing support to all employers who engage a new Apprentice or Trainee through the $2.8 billion dollar ‘Boosting Apprenticeship Commencements wage subsidy’.

Announced on the 9th March 2021, the Boosting Apprenticeship Commencement wage subsidy will be extended until the 30th September 2021, with no limit on sign-ups.

Any businesses or Group Training Organisation that engages an Australian Apprentice or Trainee may be eligible for a subsidy of 50 per cent of wages paid to the apprentice or trainee, up to $7,000 a quarter.

The Morrison Government has also announced that the subsidy will now be paid for a full 12 month period.  This includes those apprentices and trainees who have already been signed up under this program (from 5th October 2020).

What you need to know

Is my business eligible?

Your business or Group Training Organisation may be eligible if:

  • you engage an Apprentice or Trainee between 5th October 2020 and 30th September 2021, and
  • you meet primary eligibility requirements, and
  • your Apprentice or Trainee is undertaking a Certificate II or higher qualification, and has a training contract that is formally approved by the relevant state training authority

How much is the subsidy?

Eligible employers will receive a wage subsidy of up to 50 per cent of their Australian Apprentice’s gross wage paid;

  • The wage subsidy is available at a maximum of $7,000 per quarter per eligible Australian Apprentice.

Anything else I should know?

  • The subsidy is available to employers of any size, industry or geographic location
  • The subsidy is not available for any apprentice receiving any other form of Australian Government wage subsidy (e.g. Supporting Apprentices and Trainees or JobKeeper)

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.


Next Steps

Our team at Mas National is here to support you with navigating the Boosting Apprenticeship Commencements wage subsidy. If you have a specific question, please contact us below and one of our friendly team members will be in touch.

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