The Boosting Apprenticeship Commencements (BAC) wage subsidy supports businesses to take on new apprentices and trainees, to build a pipeline of skilled workers to support sustained economic recovery.
Through the subsidy, any business that engages an Australian Apprentice between 5 October 2020 and 31 March 2022 may be eligible for a subsidy of 50 per cent of wages earned (not charge rates to host employer) by the new or recommencing apprentice or trainee for a 12-month period (from the date of commencement), to a maximum of $7,000 per quarter.
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.
Subsidies are processed as part of a Federal Government claim by PEER. Once the payment has been received by PEER it will be added to your account as a credit note (for PEER host employers). Subsidy processing is completed in arrears at the end of each quarter.
From 1 July 2020 the Australian Apprenticeships Incentives Program (AAIP) was scheduled to be replaced with a new, simplified and streamlined incentives program for employers of apprentices and trainees, the Incentives for Australian Apprenticeships (IAA).
However, due to the extension of the Boosting Apprenticeship Commencements Wage Subsidy to 31 March 2022 as announced in the 2021-22 Budget the Government has further revised the implementation schedule of the IAA.
The IAA will now commence from 1 July 2022.
For more information read the Boosting Apprenticeships Commencements fact sheet.
Questions? please contact customerservice@peer.com.au
Or payroll@peer.com.au