Australian Government Stimulus Package
BUSY At Work and The Apprenticeship Community are committed to supporting employers, apprentices, GTOs and RTOs to ensure as many apprentices and trainees as possible keep their jobs during this unprecedented time.
As part of the Australian Government’s recently announced stimulus package, we can help your business to claim for the 50% wage subsidy assistance for apprentices and trainees. Further support information, including the JobKeeper package, can be found below.
Please note, we are able to assist businesses in QLD and WA. If you are from another State, please visit www.treasury.gov.au for more information.
Boosting Apprenticeship Commencements (BAC)
Wage Subsidy Incentive when employing New Apprentices or Trainees
NOW UNCAPPED AND EXTENDED TO 31st March 2022
The Boosting Apprenticeship Commencements (BAC) scheme is designed to support employers to engage more apprentices and trainees and is part of the COVID-19 economic recovery plan.
The BAC subsidy (effective since 5th October 2020) is in addition to the Supporting Apprentices and Trainees (SAT) subsidy for employers of apprentices and trainees who have been employed since January 1, 2020.
Under the BAC scheme, employers of any size, location or industry will be eligible for a Federal Government subsidy of 50% of the wages for a new apprentice or trainee employed from October 5th 2020, up to 31st March, 2022. The subsidy applies for the period from commencement of your apprentice or trainee and is up to a maximum of $7,000 per quarter.
For example, if your business put on an apprentice or trainee on any date between 5 October 2020 up until 31 March, 2022, you will be eligible to place claims for 12 months following the sign-up date.
All claims, for any of the claim periods, must be submitted by 31st December 2022.
Can your Business Apply for BAC for an existing worker?
This depends on criteria below, as updated by the Australian Government to apply from October 28, 2020.
An existing worker is only eligible to attract the Boosting Apprenticeship Commencements payment for an employer, where the existing worker:
- commences in a trades-based Australian Apprenticeship; or
- transfers from a casual employment arrangement to a part-time or full-time Australian Apprenticeship; or
- transfers from a part-time employment arrangement to a full-time Australian Apprenticeship.
Limits apply to the above new criteria
An employer or host employer (if using a Group Training Organisation), identified by ABN, will be eligible for the Boosting Apprenticeship Commencements payment for up to 30 existing worker Australian Apprentices where:
- an existing worker transfers from a casual employment arrangement to a part-time or full-time Australian Apprenticeship; or
- an existing worker transfers from a part-time employment arrangement to a full-time Australian Apprenticeship.
No limit will apply where the existing worker is undertaking a trades-based Australian Apprenticeship.
Limits apply for commencements from 28 October 2020.
How to Register for BAC
An eligible employer should advise of intent to claim the Boosting Apprenticeship Commencements during sign-up of their new apprentice or trainee. BUSY At Work can assist with application form during sign-up.
For more information visit The Department of Education Skills and Employment website.
Help to Lodge your BAC Claim
Further information to ensure you have all evidence required when lodging a claim can be found at: LODGING A BAC CLAIM
If you are an employer and would like more information:
Completing Apprenticeship Commencements (CAC)
For Employers of Apprentices & Trainees who are registered for Boosting Apprenticeship Commencements.
The Completing Apprenticeship Commencements is an extension to wage subsidies for employers of apprentices or trainees who have previously registered for the Boosting Apprenticeship Commencements.
After 12 months of this support employers will be eligible to transition to the time-limited Completing Apprenticeship Commencements (CAC) wage subsidy for the second and third years of an apprenticeship.
Under the CAC, eligible employers will receive a 10 per cent wage subsidy in the second year of an eligible apprenticeship, up to a maximum of $1,500 per quarter per apprentice, and a 5 per cent wage subsidy in the third year of their apprenticeship, to a maximum of $750 per quarter per apprentice.
The BAC and CAC are available to employers of any size, industry or geographic location.
Final claims for payment must be lodged by 30 June 2025.
As per the BAC claims, wage payment evidence must be provided.
Payment Summaries & wage evidence requirements
Wage evidence, including a payment summary, can be accepted as sufficient wage evidence providing it specifies:
- Employer name and/or Employer ABN
- Apprentice name
- Payment period (date range aligning to the period being claimed)
- Payment amount (gross amount)
- Full wage evidence with pay periods identified is required if an apprentice commences, cancels, completes or is suspended within the claim period.
More details can be found on the Australian Government Department of Employment, Skills and Education website.
Further Support for Employers
$1500 a fortnight JobKeeper Package and other Support
If your apprentice or trainee is receiving JobKeeper package you may still be eligible for a part claim (depending on when the apprentice or trainee commenced JobKeeper).
For information regarding the JobKeeper package for employers (which pays $1500 a fortnight for employees) and all other business, employee and job seeker support available visit the Treasury.gov.au website.
Businesses will need to register for the JobKeeper package via the ATO website.
In July the Australian Government announced an extension of its wage subsidy program to support employers of apprentices and trainees. The new subsidy now includes larger employers (employing less than 200 employees), where previously this only applied to employers of less than 20 employees.
Key points from the further $1.5 billion package to assist in stimulating our recovering economy include:
- The expanded apprentice wage subsidy will cover 50% of the pay of approximately 180,000 apprentices (to a maximum amount of $530 per week)
- It is now extended to larger employers (less than 200 employees) where it was previously only available to employers with less than 20 employees
- Opening eligibility to further businesses, the apprentice or trainee now needs to have been employed by the business since July 1, previously this date was March 1.
- Job seekers and school leavers will also be supported with a further $500 million invested into no or low-cost training options, re-skilling and preparing job seekers for the newly employing industries.
Other Available Assistance
Under the Government’s Stimulus Package, further assistance for business includes:
- Cash flow assistance for small to medium sized businesses of up to $100,000 (minimum of $20,000).
- Temporary relief for financially distressed businesses.
- Increasing the instant asset write-off.
- A time limited 15 month investment incentive (through to 30 June 2021) to support economic growth
- $1 Billion assistance for regions and industries most affected by the Coronavirus outbreak.
You can keep up to date on the Government’s Economic Response to Coronavirus via The Treasury website – https://treasury.gov.au/coronavirus/businesses