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
- Employers must set up a Digital Identity (such as myGovID and link it to your business)
- Employers should then check their eligibility using the Apprenticeship Data Management System (ADMS)
- If eligible, a form will be created in ADMS and you will receive an email notification inviting you to make the claim
- 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
- 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].