Apprenticeship Incentives
The Australian Government has introduced a number of initiatives to assist employers who take on an Australian Apprentice, particularly where the Australian Apprenticeship is in a trade experiencing a skills shortage. These initiatives provide financial incentives to eligible employers through the Australian Apprenticeships Incentives Program.
Assistance on all aspects of Australian Apprenticeships can be obtained from an Australian Apprenticeships Centre. Australian Apprenticeships Centres are contracted by the Australian Government to deliver free Australian Apprenticeships Support Services, which include providing information and assistance to employers, Australian Apprentices and other interested people, marketing and promoting Australian Apprenticeships and administering Australian Government incentive payments to employers and allowances for Australian Apprentices. To contact an Australian Apprenticeships Centre, please call the Australian Apprenticeships referral line on 13 38 73.
Please note, the Australian Apprenticeships website provides information on the incentives available from the Australian Government only. Australian Apprenticeships Centres are responsible for determining eligibility for these incentives. Other assistance and incentives may be available from your State or Territory Training Authority.
Employers of an Australian Apprentice may be eligible for financial assistance through:
Standard, Additional and Special incentives
Support for Adult Australian Apprentices
Assistance for Australian Apprentices with Disability
Support for employing an Australian School-based Apprentice
Eligibility for incentives under the Australian Apprenticeships Incentives Program may be affected by the duration of the employment relationship you have with your current employee. For more information on the eligibility of existing workers to attract incentives, please download the ‘Incentives for existing workers fact sheet’.
Standard, Additional and Special incentives
Employers of Australian Apprentices may be eligible to claim commencement and completion incentive payments of up to $4,000 for employing an Australian Apprentice at the Certificate III to Advanced Diploma level (subject to meeting the required eligibility criteria).
There is also a range of additional incentives available to employers of an Australian Apprentice including the:
- Declared Drought area incentive
- Rural and Regional Skills Shortage incentive
- Mature Aged Worker incentive
An employer may also be eligible for the Group Training Organisation Certificate II completion incentive where the employer is a Group Training Organisation and the Australian Apprentice is within a nominated equity group and has successfully completed an Australian Apprenticeship at the Certificate II level.
For more information on Standard, Additional and Special incentives, please download Employing an Australian Apprentice – A smart business decision.
Support for Adult Australian Apprentices payment initiative
The Support for Adult Australian Apprentices payment initiative provides financial support to Australian Apprentices or their employers where the Australian Apprentice is aged 25 or over at the commencement of their Australian Apprenticeship on or after 1 January 2010, and is undertaking an Australian Apprenticeship at the Certificate III or IV level in an occupation experiencing a skills shortage.
Please visit the Support for Adult Australian Apprentices page for information on this initiative.
Assistance for Australian Apprentices with Disability
Assistance for employers of Australian Apprentices with disability includes Disabled Australian Apprentice Wage Support and Assistance for Tutorial, Interpreter and Mentor Services.
Each form of assistance is intended to help Australian Apprentices with disability to reach their full potential.
For more information, download Support for Australian Apprentices with disability on the Factsheets page.
Australian School-based Apprenticeships Incentive
Employers may be eligible for a $750 commencement incentive for employing an Australian Apprentice in an endorsed Australian School-based Apprenticeship at the Certificate II, III, IV, Diploma or Advanced Diploma level and $750 for continuing to employ the young person after the student has completed Year 12.
For more information, download About Australian School-based Apprenticeships on the Factsheets page.
There are a number of incentives for businesses which employ a trainee or apprentice.
This page is only an indication an it can not be considered exhaustive in any way.
For Victoria incentive please visit Skills Victoria website.
Below a summary of the Australian Government Australian Apprenticeships Incentives Programme -
from 10 May 2010
| Australian Government Incentives | Amount Awarded |
The following summarises the Australian Government Australian Apprenticeships Incentives regime for all Australian Apprentices. Payment of incentives will be subject to employers and their Australian Apprentices satisfying eligibility criteria as set out in the Australian Government Australian Apprenticeships Incentives Programme Guidelines. Contact your Australian Apprenticeships Centre for further information on Australian Government Incentives. |
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Standard Commencement |
$1,250
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Incentive for an employer who commences in Australian Apprentice in Certificate II training |
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$1,500
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Incentive for an employer who commences an Australian Apprentice in Certificate III, IV or Diploma or Advanced Diploma qualifications. |
| Innovation – Special Commencement |
$1,100
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Special incentive for an employer who employs an Australian Apprentice in an eligible innovation Training Package qualification at the Certificate III or IV level. |
| School-Based Australian Apprenticeships – Additional Commencement |
$750
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Additional incentive for an employer who employs an Australian Apprentice in an endorsed Australian School-based Apprenticeship at the Certificate II to IV level or in a Diploma or Advanced Diploma qualification. |
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Rural and Regional Incentive - Special Commencement |
$1,000
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Special incentive for Rural and Regional Australian Apprenticeships where the Australian Apprentice commences a Certificate III or IV qualification in a National Skill Needs List occupation in a non-metropolitan area. |
| Declared Drought Area – Additional Commencement |
$1,500
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Additional incentive for employers of eligible Certificate II Australian Apprentices who have a current Exceptional Circumstances Drought Area certificate. |
| Mature Aged Worker – Special Commencement |
$750
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Special incentive for an employer who commences an eligible Certificate II or higher level Australian Apprentice who is a disadvantaged person aged 45 years or more. |
| Standard Recommencement |
$750
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Incentive for employers recommencing Australian Apprentices at the Certificate III, IV or Diploma or Advanced Diploma level. |
| Australian School-Based Australian Apprenticeship Retention |
$750
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For an employer who continues to employ a Certificate II to IV level or Diploma or Advanced Diploma Australian School-based Apprentice after the student has completed Year 12. |
| Standard Completion |
$2,500
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Employers of Australian Apprentices who successfully complete a Certificate III, IV or Diploma or Advanced Diploma qualification may be eligible to receive the completion incentive. |
| Declared Drought Areas – Special Completion |
$1,500
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Special incentive for employers on the successful completion of eligible Certificate II Australian Apprentices who attracted a Declared Drought Areas additional commencement incentive. |
| Mature Aged Worker – Special Completion |
$750
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Special incentive for an employer on the successful completion of a Certificate II or higher level Australian Apprentice who attracted a Mature Aged Worker special commencement incentive. |
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Living Away From Home Allowance (LAFHA) |
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Australian Apprentices may be eligible for up to twelve months of LAFHA at the first year rate, a further twelve months assistance at the second year rate, and a further twelve months assistance at the third year rate if the Certificate II or higher level Australian Apprentice had to move away from their parental/guardian home to commence or remain in an Australian Apprenticeship, or is homeless. |
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$77.17 per week
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First Year |
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$38.59 per week
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Second Year |
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$25.00 per week
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Third Year |
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Support for Adult Australian Apprentices |
Australian Government financial support is available for adult workers (aged 25 years or over) to upgrade their skills through an Australian Apprenticeship at the Certificate III or IV level in an occupation listed on the National Skills Needs List. From 1 January 2010, Australian Apprentices aged 25 years or more at commencement or who previously attracted Support for Mid-Career Apprentices payments may be eligible to attract Support for Adult Australian Apprentices. |
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The payment is made to either the employer or the Australian Apprentice depending on the actual wage paid to the Australian Apprentice and is set at $150 per week (up to a maximum of $7,800 per annum) in the first year and $100 per week (up to a maximum of $5,200 per annum) in the second year. The weekly rate for part-time Australian Apprentices is $75 per week for the first 24 months and $50 per week for the second 24 months. |
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| Further Australian Government Assistance Available for Australian Apprentices | Australian Apprentices may be eligible for income support through Youth Allowance, Austudy or ABSTUDY. More information is available from Centrelink on 13 36 33. | |
| Assistance for Australian Apprentices with a Disability | The Program provides additional assistance to eligible employers who employ a Certificate II or higher level Australian Apprentice with disability. Assistance may include a wage support payment or tutorial, interpreter and mentor services. | |
| Securing Australian Apprenticeships Initiative |
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The Securing Australian Apprenticeships initiative provides financial support to employers who create new opportunities for eligible Australian Apprentices to continue their incomplete (but formally STA approved) training, or who successfully complete Australian Apprentices, at the Certificate III or IV level in skill shortage trades, or in Diploma or Advanced Diploma level qualifications. |
| -Recommencement Bonus and Completion Bonus | This consists of: | |
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| Small or medium enterprises (including eligible Group Training Organisations) who take on a young person aged 19 years and under as an Australian Apprentice in a qualification leading to an occupation listed on the National Skills Needs List between 12 May 2010 and 12 November 2010 (inclusive) may be eligible for the Apprentice Kickstart Extension totalling $3,350. The Apprentice Kickstart Extension is paid in instalments of $850 paid at the three month point of the Australian Apprenticeship; and $2,500 paid at the nine month point of the Australian Apprenticeship. | ||
| Tools For Your Trade | From 1 January 2010, the Tools For Your Trade payment initiative is available to eligible Australian Apprentices in selected trade occupations on the National Skills Needs List, agricultural occupations, and, if in rural and regional Australia, horticulture occupations. This payment comprises of five tax exempt cash payments totalling $3,800, paid over the life of the Australian Apprenticeship. Payments of $800 are paid at the three, 12 and 24 month points and $700 at the 36 month point and on completion. | |
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Payment Group Training Organisations – Special Completion |
$1,000
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Special incentive for Group Training Organisations that support Australian Apprentices to complete a Certificate II Australian Apprenticeship. |
From 1st January 2006, GST is no longer payable on Australian Apprenticeships employer incentives.
If properly completed – these will be automatically processed without the GST component. There will be no net reduction in the amount an employer will receive as a result of this change.
Waiting periods – There is a three month waiting period before an employer can apply for an Australian Government Commencement Incentive for an Australian Apprentice. The Apprenticeship / Traineeship Training Contract must be formally approved. The Australian Apprentice must be still employed by the same employer and must have commenced training in accordance with the approved Training Program. The employer should submit a claim to the Australian Apprenticeship Centre at the end of the three month waiting period, and within the required time limit. Further information on waiting periods and time limits can be obtained from your Australian Apprenticeship Centre