The federal government says it will invest an additional $1.2 billion to create a subsidy encouraging Australian businesses to enable apprenticeships for 100,000 new apprentices or trainees as part of its COVID-19 economic recovery plan.
According to the government, the subsidy will be available to employers of any size or industry Australia-wide who engage an Australian apprentice or trainee from 5 October 2020 until the 100,000 cap is reached.
Under the new measure, employers will be eligible for 50 per cent of the wages for a new or recommencing apprentice or trainee for the period up to 30 September 2021, up to $7000 per quarter.
Prime Minister Scott Morrison said apprenticeships are an important pathway to get young people into jobs and ensure there is a skills pipeline to meet the future needs of employers.
“During this pandemic the federal government has been focused on supporting and creating jobs as well as identifying the skills we need in the economic rebuild,” said Morrison.
“Already 760,000 jobs that were either lost or reduced to zero hours as the COVID crisis hit have come back into our economy. We want to continue to recover what has been lost and get young people into work.
“Whether it’s the manufacturing, housing and construction, arts or mining sectors – this new wage subsidy gives businesses certainty to hire, and provides a career path to aspiring, young tradies.”
Michaelia Cash, Minister for Employment, Skills, Small and Family Business, said the measure builds on the existing $2.8 billion Supporting Apprentices and Trainees wage subsidy.
“The Australian Government has already invested significantly to ensure that apprentices are retained where possible and supported to re-engage if they lose their job,” said Cash.
Steve Irons, Assistant Minister for Vocational Education, Training and Apprenticeships, said the new subsidy measures will strengthen government support of apprentices and trainees.
“Through the existing Supporting Apprentices and Trainees measure, as many as 90,000 businesses employing around 180,000 apprentices throughout Australia will continue to be supported,” said Irons.