AS PART OF THE 2020-21 FEDERAL BUDGET, THE COMMONWEALTH GOVERNMENT ANNOUNCED AN ADDITIONAL $1.2 BILLION IN FUNDING TO ENCOURAGE EMPLOYERS TO TAKE ON NEW APPRENTICES AND TRAINEES THROUGH ITS BOOSTING APPRENTICESHIP COMMENCEMENT (BAC) WAGE SUBSIDY.

The BAC wage subsidy will provide support for 100,000 new apprentices and trainees across Australia. The subsidy is capped at 100,000 places and available to employers of any size, industry or geographic location.

The training the eligible apprentice or trainee undertakes must be provided by a Registered Training Organisation (RTO).

According to Julian Carle, CEO of training provider Synergen, employers should take into considerations the following when selecting an RTO to provide the training:

Choose the right RTO

There are many RTO’s to choose from, make sure you choose one that has a history of quality work at quality clients. Check for past clients, testimonials, referees etc.

Choose the right qualifications

Enrolling your staff in an inappropriate qualification could be seen as taking advantage of the program.

Provide the right amount of support

The process requires the employer and employee to enter into a formal training contract. One of the key aspects of this includes providing support for the learner as they undertake the qualification.

Ask about the trainer

A highly skilled and experienced trainer can make all the difference when it comes to both the participants experience and also the likelihood they will complete the qualification.

Is my business eligible?

To be eligible for the BAC wage subsidy, a business or a Group Training Organisation:

• Must engage an Australian apprentice or trainee between 5 October 2020 and 30 September 2021; and
• The apprentice or trainee must undertake a Certificate II or higher qualification and has a training contract that is formally approved by the state training authority

It is important to note that the subsidy is not available for any apprentice receiving any other form of Australian Government wage subsidy e.g. Supporting Apprentices and Trainees or JobKeeper.

The subsidy will also not be available for Directors or owners of the business.

How much is the subsidy?

Eligible employer will receive a wage subsidy of up to 50% of the eligible apprentice or trainee’s gross wage paid, up to a maximum of $7,000 per quarter.

The subsidy is available for wages paid between 5 October 2020 to 30 September 2021.

Payments will be made quarterly in arrears, with first claims for the subsidy available from 1 January 2021.

If you would like more information on the BAC Subsidy, please speak to your account manager or contact us on 03 9899 4036.