On 2 April 2019, the Australian Government handed down the 2019-20 Budget. As part of the Budget two measures were announced that will support up to 80,000 additional apprenticeships over five years.
Additional Identified Skills Shortage payment
The Government will provide $156.3 million to establish an Additional Identified Skills Shortage (AISS) payment to boost the supply of skilled workers in occupations experiencing national skills shortages.
From 1 July 2019, the AISS will provide an additional incentive for both employers and apprentices in these occupations.
Eligible employers will receive $2,000 at the 12 month point from commencement of the apprenticeship and an additional $2,000 at completion of the apprenticeship.
Eligible apprentices will also receive $1,000 12 months after commencing, and $1,000 at the completion of their apprenticeship.
The AISS payments will be additional to any payments the apprentice or employer may be eligible for under existing Australian Government programs.
Streamlined and Simplified Incentives for Australian Apprenticeships
The Government will make it easier for employers to access financial support for employing an apprentice by investing $44.0 million to simplify and streamline employer incentive payments.
The Government will also comprehensively review the National Skills Needs List that underpins apprenticeships incentives, informed by consultation with industry and employer groups.
The new incentives payments will be available for employers of apprentices commencing from 1 July 2020. Under the new program, many employers will be better off.
Employers claiming incentives for an apprentice or trainee who commenced prior to 1 July 2020 will continue to receive payments under the old payment structure. Employers can contact their Australian Apprenticeship Support Network provider for further information about current incentives.
More information on these measures is available below: