Stimulus Package for Employers

 

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

Wage Subsidy Incentive when employing New Apprentices or Trainees

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 new 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. The subsidy applies for the period up to September 30, 2021 and is up to a maximum of $7,000 per quarter.

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 that 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 or you can download our fact sheet below.

Fact Sheet information regarding Boosting Apprenticeship Commencements – PDF

Supporting Apprentices and Trainees Subsidy (SATS)

For Current Employers of Apprentices & Trainees.

Claims for the next quarter opened October 12.
  • Wage subsidy of 50% of an apprentice’s or trainee’s wage
  • Employers reimbursed up to $21,000 per apprentice or trainee
  • 3 monthly instalments – up to $7,000 per quarter
  • 50% of actual wages paid between 1 January 2020 and 30 September 2020.

If eligible, employers will be able to claim up to $7000 a quarter for apprentices and trainees in 2019/20 and 2020/2021 financial years. The wages will be paid up to September 30 this year (but the government has stated they will re-assess whether this needs extending).

Eligibility Criteria Includes:

  • For Round 3, eligibility is now extended to larger employers (less than 200 employees, previously this was less than 20 employees). Employers of less than 200 employees can now also make a claim in Round 3.
  • Opening eligibility to further businesses of less than 200 employees, the apprentice or trainee now needs to have been employed by the business since July 1, (previously this date was March 1).
  • Any occupation, any industry, any qualification, an AQF level of Certificate II or higher, full-time, part-time and school-based
  • Employer must provide evidence of paid wages by attaching complete pay slips for the full quarter period to their claim form. For the third quarter, pay period must cover from July 1 to September 30.
  • Employers of any size (including GTOs) that re-engage an eligible out-of-trade apprentice or trainee are also eligible for the subsidy.

Timing

  • Registration and claim submissions are open on October 12.
  • For employers with less than 20 employees, subsidy can  be back-paid from January 1 (for Rounds 1 and 2  and only if previously not made a claim or receiving JobKeeper during that time).
  • Third quarter is paid from July 1 to September 30 and employers of less than 200 employees can now make a claim for this round if eligible.
  • Payments will be made quarterly.
  • Claims must be submitted by 31 December 2020.

Help to Lodge your SATS Claim

Further information to ensure you have all evidence required when lodging a claim can be found at:
LODGING A SATS CLAIM.

If you are an employer and would like more information:

Queensland Employers

If you have any enquiries and are an employer in Queensland, please email: SATWSClaimsQLD@busyatwork.com.au

Western Australian Employers

If you are a WA Employer, please email:  SATWSClaimsWA@busyatwork.com.au 

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.

JobTrainer package 

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 

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