Apprentices in high-demand industries will receive up to $5,000 in cash for the first two years of their training, but wage subsidies will be reduced for employers, under a 2.4-year incentive program billion dollars designed to target the country’s skills shortages.
In an effort to attract more people into in-demand trades, interns will receive a $1,250 payment every six months beginning in July for the first two years of their apprenticeship in priority skill areas, while their employers will be able to access a 10% wage subsidy which drops to 5% in the third year.
The two-year scheme is the first stage of Australia’s new apprenticeship incentive system that will replace the generous 50% wage subsidy scheme the federal government credits with creating a record 220,000 apprenticeships in the trades. during the pandemic.
In his budget speech, Treasurer Josh Frydenberg said there was a “historic opportunity to place young Australians in skilled, secure and well-paying jobs” as Australia’s unemployment rate heads to a low of 50 years. He said the new wage subsidy measures would put up to $15,000 in the pockets of employers who hire apprentices.
In a separate sweetener for employers, Mr. Frydenberg announced an immediate tax deduction of $120 for every $100 spent by small businesses on employee training.
Skills Minister Stuart Robert said the new apprenticeship system focused government investment on priority occupations facing skills shortages, but employers who took on apprentices in occupations not in demand would also receive an incentive to hiring $3,500.
“It will be guided by a new priority list of Australian apprenticeships, which defines occupations
with an apprenticeship or internship path that have high current and future demand. The list is based on analysis by the National Skills Commission and will be updated annually,” Robert said.