apprentice wage subsidy

Financial support to hire an apprentice

Apprenticeship wage subsidies and hiring incentives

Get help to hire an Australian Apprentice

If you give an Australian apprentice a job, you may be able to get financial assistance to help you hire, train and keep them.

The Australian Apprenticeships Incentive System (Incentives System) aims to help fill skill shortages in areas of industry that need it most.

Benefits

The Incentives System provides a range of financial incentives to eligible employers.

The Incentives System, dependent on meeting eligibility requirements, offers employers of an Australian Apprentice:

  • wage subsidies for priority occupations
  • a hiring incentive for other occupations not on the Australian Apprenticeships Priority List
  • Disability Australian Apprentice Wage Support.

Note: From 1 July 2024, support will be available for priority occupations only. Support will include:

  • a hiring incentive for employers
  • training support payments for apprentices.

Eligibility

Australian Apprenticeships website has detailed information on the financial support you could be eligible for as an employer. If you are unsure, you can use the Incentives Explorer to see what payments and incentives you could claim.

Contact an Australian Apprenticeship Support Network provider for expert advice on eligibility for support and incentives.

How to claim

The Apprenticeships Data Management System (ADMS) is the platform that supports the delivery of Australian Apprenticeships, including the Incentives System. An Australian Apprenticeship Support Network provider can help you with any questions you may have about your claim.

To find out how to access the ADMS, download the Accessing the Apprenticeships Data Management System – Employers fact sheet.

To find out how you can lodge claims via ADMS, go to ADMS Help and Support to find everything you need to successfully process wage subsidy and hiring incentive claims.

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apprentice wage subsidy

Wage subsidy applications for employees close 30 June

Be quick to claim yours! 

Overview of the Boosting Apprenticeship Commencements (BAC) wage subsidy 

The Boosting Apprenticeship Commencements (BAC) wage subsidy supports employers of any size in onboarding new apprentices.  

The subsidy is not just for traditional apprentices or young people (although it does also apply to them). Employers who organise training for their employees through Group Training Organisations may also be eligible – see eligibility criteria below.  

Group Training Organisations must pass on the BAC and CAC payments to the host employer. Employers (via the Group Training Organisation) will be eligible for the wage subsidy for up to 30 approved employees registered for training. 

Businesses that employ an Australian Apprentice for training between 5 October 2020 and 30 June 2022 may be eligible for a subsidy of 50% of the gross wages paid. The subsidy is for a maximum of $7000 per quarter, per eligible employee, for wages paid in the 12-month period from the date they start.  

Payments will be made quarterly in arrears into the employer’s nominated bank account. Employers are encouraged to submit claims as soon as possible after the relevant claim period opens. 

Eligibility Criteria  

The subsidy is available to employers of any size, industry, or geographic location.  

Your business may be eligible if: 

  • You engage an Australian Apprentice between 5 October 2020 and 30 June 2022 
  • 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.  

Please note, you may still be eligible for the wage subsidy if your employee is registered prior to 30 June 2022 to complete the training, and the required application is completed / approved.  

Additional eligibility requirements apply to existing workers. 

The employee must not be: 

  • Employed as a casual or contractor 
  • Sole director of the employer company 
  • Sole trader 
  • Majority shareholder in the employer company 
  • Partner in a partnership (of the employing business) 
  • Trustee in a trust (of the employing business) 

For further information regarding eligibility refer to the Department of Education, Skills and Employment Q&A here » 

Moving forward – the Completing Apprenticeship Commencements (CAC) wage subsidy 

After 12 months of this support, employers may be eligible to transition to the time-limited Completing Apprenticeship Commencements (CAC) wage subsidy for the second and third years of an apprenticeship.  

Under this scheme, eligible employers will receive a 10% wage subsidy in the second year of an eligible apprenticeship, up to a maximum of $1500 per quarter per apprentice, and a 5% wage subsidy in the third year of their apprenticeship, to a maximum of $750 per quarter per apprentice.  

How to apply for BAC and CAC 

  1. Employers must set up a Digital Identity (such as myGovID and link it to your business)  
  1. Employers should then check their eligibility using the Apprenticeship Data Management System (ADMS) 
  1. If eligible, a form will be created in ADMS and you will receive an email notification inviting you to make the claim 
  1. When ready to claim, go to ADMS Website and log in using your myGovID, fill in the form and upload evidence for your apprentice and submit application. The ADMS will assist in calculating the subsidy amount you may be able to claim 
  1. Once you have submitted the claim, you will receive an email notification with the outcome.  

Alternatively, there are a number of third-party providers who can assist.  You simply provide them with details of your eligible employees and they do the rest.   

Other rebates available 

Wage subsidies are also available for employees who have been hired through an employment services provider, and fit the following criteria: 

  • 15 to 29 years of age 
  • Indigenous Australians 
  • 50 years of age and above 
  • A parent 
  • Registered with an employment services provider for 12 months or more 

For more information please check out the Australian Government Wage Subsidies Fact Sheet » 

Contact us 

Our experienced HR Consultants are available to support you with any employee-related questions. Please get in touch with us today on 1300 675 393 or at [email protected].

Casual Employees or Part time

Boosting Apprenticeship Commencements

Expansion of the targeted wage subsidy program

An extension to the apprenticeship wage subsidy program for another 12 months has been announced.

The Boosting Apprenticeship Commencements wage subsidy program is fully subscribed, helping create 100,000 apprenticeships in less than five months. 

The Program will now become demand driven and expanded for a full 12 months for new apprentices and trainees signed up prior to 30 September 2021.  It is estimated that this demand driven expansion will generate around 70,000 new apprentice and trainee places, with the Government investing around $1.2 billion. 

Eligibility requirements

A business or Group Training Organisation may be eligible if:

  • you engage an Australian Apprentice between 5 October 2020 and 30 September 2021, 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.

How much is the subsidy?

Eligible employers and Group Training Organisations will receive a wage subsidy of up to 50 per cent of the Australian Apprentice’s gross wage paid.

The subsidy is available for Australian Apprentices commencing or recommencing between 5 October 2020 and 30 September 2021.

The wage subsidy is available for a maximum of $7,000 per quarter, per eligible Australian Apprentice, for wages paid in the 12-month period from date of commencement or recommencement.

Additional information

  • The subsidy is available to employers of any size, industry or geographic location.
  • The subsidy is not available to any apprentice receiving any other form of Australian Government wage subsidy e.g. Supporting Apprentices and Trainees or JobKeeper.
  • Payments will be made quarterly in arrears, with first claims for the subsidy available from 1 January 2021.
  • Final claims for payment must be lodged by 31 December 2022.
  • The 100,000-cap limit has been removed to provide additional support to employers and Group Training Organisations.

How to apply or find out more

Creating jobs, generating economic opportunities and boosting the skills of workers lies at the heart of Australia’s National Economic Recovery Plan.

For further information on how to apply for the subsidy, including information on eligibility, contact an Australian Apprenticeship Support Network provider.

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