Summary of Payments for Employers

Support for employers of Australian Apprentices

From 1 July 2022, the Federal Government has streamlined the incentive program to make it simpler to understand and to allocate more support to industries that are considered a priority to building the Australian economy.

Under the new Australian Apprenticeships Incentive System (AAIS), you will find new measures such as the Priority Wage Subsidy and Hiring Incentive, as well as the continuation of existing measures such as the Disability Australian Apprentice Wage Support (DAAWS).

Further details below. All information is based on an Australian Apprentice commencing their Australian Apprenticeship with you on or after 1 July 2022.

Snapshot of funding available for employers

Priority Wage Subsidy

The Priority Wage Subsidy aims to maintain strong Australian Apprenticeship commencement levels and improve retention and completion rates in priority occupations experiencing national skills shortage.

Employer of Australian Apprentices undertaking a qualification listed on the Australian Apprenticeships Priority List, could be eligible for the below wage subsidy:

First year: 10% of wages paid, up to a maximum of $1,500 per quarter (up to $6,000 per year)
Second year: 10% of wages paid, up to a maximum of $1,500 per quarter (up to $6000 per year)
Third year: 5% of wages paid, up to a maximum of $750 per quarter (up to $3,000 per year)

A TOTAL of up to $15,000 over three years.

Eligibility criteria:

Where the Australian Apprentice is;

Commencing, recommencing or an existing worker;
Full time or part time;
Undertaking a Certificate III, IV, Diploma or Advance Diploma
Undertaking a qualification and occupational outcome stated on Appendix A: Australian Apprenticeships Priority List; and

Where the employer is;

Registered for Single Touch Payroll with the ATO or has ATO Exemption;
Not claiming other ‘wage subsidies’ or Disability Australian Apprentice Wage Support (DAAWS) for this Australian Apprentice.

Hiring Incentive

A Hiring Incentive will be available to support employers of commencing or recommencing Australian Apprentices undertaking qualifications not listed on the Australian Apprenticeships Priority List.

The Hiring Incentive is two payments, one payable at 6 months and the other at 12 months.

Break down below;

Full Time Apprenticeships:

$1,750 payable at 6 months
$1,750 payable at 12 months
Total up to $3,500

Part Time Apprenticeships:

$875 payable at 6 months
$875 payable at 12 months
Total up to $1,750

Eligibility criteria:

Where the Australian Apprentice is;

Commencing or recommencing;
Not an existing worker (ie. not previously employed for 3 months full time or 12 months part time/casual);
Undertaking a Certificate II or higher in a qualification and occupational outcome NOT stated on Appendix A: Australian Apprenticeship Priority List;
Still undertaking the Australian Apprenticeship at the due date of the claim; and

Where the employer is;

Registered for Single Touch Payroll with the ATO or has ATO Exemption;
Not claiming other ‘wage subsidies or Disability Australian Apprentice Wage Support (DAAWS) for this Australian Apprentice.

Assistance for Employers of Australian Apprentices with a Disability

The Australian Government provides additional support to Australian Apprentices with a disability through the Disabled Australian Apprentice Wage Support (DAAWS).

DAAWS Payment:

$104.30 per week for full time Australian Apprenticeships (pro-rata for part time).

DAAWS is payable to employers who employ Australian Apprentices who meet the eligibility criteria below;

A medically diagnosed disability that affects them in their workplace and these affects can’t be managed with medication or self-management strategies;
Has been assessed by a medical practitioner or registered psychologist and deemed capable to complete an Australian Apprenticeship if they are provided with suitable support from the employer;

NOTE: Employers that qualify for DAAWS may choose whether they wish to proceed with claiming DAAWS or instead claim the Priority Wage Subsidy or Hiring Incentive.

Tutorial Assistance, Mentor Assistance and Interpreter Assistance:

Paid to the Registered Training Organisation (RTO) where the Australian Apprentice requires a Tutor, Mentor or Interpreter to assist with their off-the-job training.
Employer must qualify for DAAWS for the RTO to be able to claim for Tutorial, Mentor and/or Interpreter Assistance Tutorial Assistance: Capped at $38.50 per hour (up to $5,500 per year).
Mentor and/or Interpreter Assistance: Capped at $38.50 per hour (up to $5,500 per year).

Additional Payments and Benefits

Funded Training:

State Government may subsidise the cost of the training component delivered by RTOs. Amounts advised at application.

Payroll Tax Exemptions (Not available all states):

Payroll Tax Exemptions may be available to employers who enrol their new staff into an Australian Apprenticeship. Contact your State Revenue Office for details.

Workcover Rebate / Exemption (Not available all states):

Workcover Rebate may be available to employers who enrol their new and existing staff into an Australian Apprenticeship that is listed on the National Skills Needs List (NSNL). Contact your Workcover Insurer for details.

Australian Brick & Blocklaying Training Foundation (ABBTF):

Contact ABBTF for claiming. $1,000 paid at 12, 24, and 36 month mark of Australian Apprenticeships for bricklaying or blocklaying Australian Apprentices.

GST does not apply to incentives paid to employers under the Australian Apprenticeships Incentive System. Further criteria and conditions apply for all incentives. This information is to be used as a guide only and is subject to change without notice. Information is current as of the 1st July 2022.

Get in touch with us

Our friendly team at Mas are here to guide you through the program and help you access the funding that is available.

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