Apprenticeships Incentives Review

Ai Group forwarded its submission to the Strategic Review of the Australian Apprenticeship Incentive System on Wednesday 15 May. The review is now timely given the substantial changes to apprenticeship incentives that commence on 1 July.

The current incentives that apply to 30 June 2024 are:

For occupations on the Priority List at Certificate III or above

• 10% of wages for first 24 months (up to $1,500 per quarter) for employers
• 5% of wages for third 12 months (up to $750 per quarter) for employers
• $5,000 payment over 2 years to apprentices and trainees

For occupations NOT on the Priority List

• A one off payment to employers made after 6 and 12 months of employing an apprentice or trainee ($1,750 for full-time and $875 for part-time.

Prior to the Budget announcement, on 1 July incentives for occupations NOT on the Priority List were to cease. For occupations that appear on the Priority List, there was to be a $4,000 incentive to employers and a $3,000 Training Support Payment to apprentices and trainees.

The Budget has amended these incentives. For occupations NOT on the Priority List there will still be no incentives. For occupations that appear on the Priority List, there will be a $5,000 incentive to employers and a $5,000 Training Support Payment to apprentices and trainees.

Ai Group recommended in our submission to the Federal Budget and again in our submission to the Incentives Review:

• Government support for all apprenticeships and traineeships of no less than 30% in wage subsidy across two years;
• Reinstate the fixed monetary completion incentives of $2500 to employers; and
• Extend the support currently available to apprentices in priority occupations of up to $5000, to assist in the completion of their training to all endorsed apprentices and traineeships without exception.

Read Ai Group’s Federal Budget submission

Read Ai Group’s submission to the Strategic Review of the Australian Apprenticeship Incentive System