Government extends apprenticeship wage subsidy scheme
The Government is extending and expanding the Supporting Apprentices and Trainees wage subsidy under the Boosting Apprenticeship Commencements Program. The subsidy will be available to support small and medium businesses with fewer than 200 employees, including those using a Group Training Organisation, who engage an Australian Apprentice between 5 October 2020 and 30 September 2021.
Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid for a 12-month period from the date of commencement, to a maximum of $7,000 per quarter. The program will extend for a full 12 months for new apprentices and trainees signed up prior to 30 September 2021.
Case study
John’s Plumbing
John’s Plumbing is a small-sized business that employs 10 people, including an Australian Apprentice.
Steve is a first year Australian Apprentice, aged 20, undertaking a Certificate III qualification. He commenced his apprenticeship with John’s Plumbing on 01 December 2020. Steve receives a weekly wage of $532.89.
John’s Plumbing are eligible for Supporting Apprentices and Trainees which pays 50 per cent of the apprentices’ wages that have been paid by John’s Plumbing.
John’s Plumbing will receive:
$11,457.14 subsidy for employing Steve for 01 December 2020 to 30 September 2021.
$2,398.56 subsidy from 01 October 2020 to 30 November 2021
If you want to know more about this program and if your business in eligible to apply for the subsidy, please do not hesitate to contact one of your trusted advisors at Cordner Advisory.
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