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Apprentice Employment Incentives for Employers

Apprentice Employment Incentives for Employers

Table of Contents

Current Incentives (from July 1, 2024)

In exciting news for employers, from January 1, 2024, further high-priority occupations have been added to the Australian Apprenticeship Priority List

The Priority Hiring Incentive is for employers and financial support to Australian Apprentices in priority occupations.

Eligibility Criteria Includes:

  • Employers who commence a new or an Existing Worker Australian Apprentice in qualification and occupation listed on Australian Apprenticeships Priority List; including those identified as leading to a clean energy apprenticeship pathway and
  • Apprenticeship with an occupational outcome listed on Australian Apprenticeships Priority List, including those identified as leading to a clean energy apprenticeship pathway.
  • Apprentice must be in-training with their employer on the Claim period due date.

New Incentives from July 1, 2024

Payments at six and 12 months from the commencement or recommencement of an Apprentice. 

Apprenticeship6 Months12 Months
Full Time$2000$3000
Part Time$1000$1500

For further information on the new incentives that commenced July 1, 2024 go to Federal Budget 2024-25 Announcement

Incentives Prior to July 1, 2024

  • For employers of new or recommencing Australian Apprentices or Trainees undertaking a Certificate III or higher qualification in a Priority Occupation, 10 per cent of wages for first and second year apprentices (up to $1,500 per quarter or $6,000 per year) and 5 per cent of wages for third year apprentices (up to $750 per quarter or $3,000 per year).
  • For employers of Australian Apprentices or Trainees not in a Priority Occupation (includes retail, hospitality and business), a hiring incentive of (max) $3,500 paid in two equal six-monthly instalments (max $1,750 each) after commencement is available. This is for new or recommencing Australian Apprentices undertaking a Certificate II or higher qualification in an occupation that is NOT on the Australian Apprentices Priority List.  

Available financial support options can be found in our Guide to Incentives

Incentives Guide Apprentices

New Energy Apprentice Support payment

The New Energy Apprentice Support Payment (introduced on 1 January 2023) is designed to encourage apprentices to choose clean energy careers, improve retention rates and deliver more successful completions by providing direct financial support to Australian Apprentices commencing an Australian Apprenticeship in a clean energy occupation.

The New Energy Apprentice Support Payment will be available to eligible Australian Apprentices undertaking a Certificate III, Certificate IV, Diploma or Advanced Diploma level qualification with an occupational outcome listed on the Australian Apprenticeship Priority List and identified as a clean energy occupation (as highlighted in green on this document).   

Eligibility Criteria:

All primary eligibility requirements must be met; AND

  • The Australian Apprentice must have commenced or recommenced their Australian Apprenticeship, with a new employer, on or after 1 January 2023; or
  • recommenced their Australian Apprenticeship with their original employer on or after 1 January 2023, where the period of suspension or cancellation was greater than 6 months if the commencement date was prior to 1 July 2022 or 12 months if the commencement date was on or after 1 July 2022
  • Both employer and apprentice must sign a decleration that the apprentice will undertake work and build skillsin the clean energy sector
  • Apprentice will be provided with meaningful exposure, experience, and work in the clean energy sector, appropriate to their skill level and/or off the job training
  • Apprentice may not receive this payment if they are in receipt of the Australian Apprenticeship Support Paymnet for the same apprenticeship; AND

The Australian Apprentice, at the date of commencement or recommencement with a new employer, must be undertaking:

The employer must demonstrate:

  • business engagement and operation with the clean energy sector; and
  • the Australian Apprentice will be provided with a significant proportion of their work in the clean energy sector; on an ongoing basis and at commencement or recommencement.

Apprentices can claim up to $10,000 for a full-time apprenticeship and up to $5000 for a part-time apprenticeship and up to $5000 for a part-time apprenticeship, according to the following schedule and rates. 

PaymentFull-time RatePart-time Rate
6 Months$2000$1000
12 Months$2000$1000
24 Months$2000$1000
36 Months$2000$1000
Completion$2000$1000

Assistance for Australian Apprentices with Disability

Disabled Australian Apprentice Wage Support (DAAWS) of up to $104.30 in arrears p/w (part-time pro-rata according to the hours worked) are available to employers. In addition, the Australian Government – Job Access Employment Assistance Fund can provide financial assistance for any workplace modifications required. For further information call 1800 464 800 or visit jobaccess.gov.au

Claiming change for RTO’s

From the 4th of March 2024, RTO’s will need to log in to the Department of Employment & Workplace Relations (DEWR) Apprenticeship Data Management System (ADMS) to claim any funds pertaining to the delivery of Mentoring & Tutorial Support under the DAAWS system. 

If you are yet to access ADMS the below link will provide instructions on how to access ADMS, as an RTO you will be accessing ADMS the same way an employer does. 

https://adms.australianapprenticeships.gov.au/adms/how-to-access

Once you have linked your myGovID using RAM (Relationship Authorisation Manager), you will be able to register for an account in ADMS using the below link.

https://adms.australianapprenticeships.gov.au/adms/sign-in

Back to Work Incentive

Up to $20,000 is available for employing eligible jobseekers in regional areas of Queensland and parts of SE Queensland through the Queensland Government’s Back to Work initiative. More information.

More Information

For more information on incentives available to employers and apprentices in the new Australian Apprenticeships Incentive System (AAIS), refer to the AAIS factsheetAAIS Frequently Asked Questions,

Past Incentives (prior to July 1, 2022)

Incentive claims prior to July 1, 2022

Employers claiming incentives for an apprentice or trainee who commenced before 1 July 2022 will continue to be supported under the current Australian Apprenticeships Incentives Program. This includes the Boosting Apprenticeship Commencements incentives which ended June 30, 2022.

ADMS claims process

You will no longer be required to submit your claims through to BUSY At Work but will be required to lodge your claims through an online portal with the Australian Government’s ‘Apprenticeship Data Management System’ (ADMS), which will require you to set up and link to your MyGovID account. More information can be found at AustralianApprenticeships.gov.au/About-ADMS

This new process for applying for wage subsidies has been modernised and streamlined for Boosting Apprenticeship Commencements Claim Periods 6 and onwards (i.e. for wages paid 1 January 2022 to 30 June 2022) and the new wage subsidies and hiring incentives under the new Australian Apprenticeships Incentives System from July 1, 2022.

From the 9th of April, employers will be responsible for completing these wage subsidy claims using ADMS.

BUSY At Work will continue to provide advice and support services to employers from pre-commencement to completion of Australian Apprenticeships and will continue to process historic BAC and CAC wage subsidy claims for wages paid between 5 October 2020 and 31 December 2021.

How to get Started
If you haven’t already, your business will need to create a myGovID Digital Identity and connect it with your business using the Relationship Authorisation Manager (RAM).

How to get started with ADMS

To securely access ADMS, users will need to:

  1. Create a Digital Identity with myGovID,
  2. Connect your myGovID with a business through the Relationship Authorisation Manager (RAM), and
  3. Register for an ADMS account on the employment System Access Management (eSAM) portal.

Once your ADMS account has been set up by following the above steps, you will be able to access ADMS at any time.

MyGovID Pic

MyGovID is your digital identity and makes it easier to prove who you are online – it’s like the 100-point ID check but on your smart device.

To access ADMS, your myGovID Digital Identity will need to be standard identity strength or above.

To learn how to set up your myGovID, please visit myGovID.gov.au.

RAM allows business owners to link their digital identity to their business and to authorise others to act on their behalf when using participating online government services.

BUSY At Work is committed to supporting apprentices and trainees to complete their qualification and remain in work, and can provide advice on the Australian Government apprentice wage subsidy and available employer incentives.

This includes the new Australian Apprenticeship Incentive System which commenced July 1, 2022.

In 2020, as part of the Australian Government’s stimulus package to encourage businesses to employ an apprentice or trainee, businesses were able to claim for a 50% wage subsidy under the Boosting Apprenticeship Commencements initiative. Applications for this initiative ended on June 30, 2022.

Further details can be found below.

Please note, we assist businesses in QLD and WA. If you are from another State, please visit www.treasury.gov.au for further information.

Boosting Apprenticeship Commencements (BAC)

Under the BAC scheme, employers of any size, location or industry were eligible for a Federal Government subsidy of 50% of the wages for apprentices or trainees employed from October 5th 2020, up to 30th June 2022. The support applies for 12 months from the first day of commencement of your new apprentice or trainee and is up to a maximum of $7,000 per quarter.

For example, if your apprentice or trainee starts on any date between 5 October 2020 up until 30 June 2022, you will be eligible to place claims for 12 months following the sign-up date. 

Claims for Rounds 1-6 must be lodged by 30 June 2022, and Rounds 7-10 must be lodged by 30 June 2023.

Help to lodge your BAC claim

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

Acceptable Wage Evidence for BAC Claims

Payment summaries & wage evidence requirements

Provision must be made for accurate and regular wage reporting through Single Touch Payroll, unless an exemption from the ATO has been granted. 

Please visit the Australian Taxation Office website for further information about Single Touch Payroll.

More information can be found here: Single Touch Payroll

If you are an employer and would like more information:
BACClaimsQLD@busyatwork.com.au

Employment Incentives for Employers – New Apprentices or Trainees. ENDED 30th June 2022

Hospitality-Bar-Worker

Completing Apprenticeship Commencements (CAC)

For businesses registered for the BAC wage subsidy:

The CAC is an extension to subsidies for employers of apprentices or trainees who have previously registered for the BAC.

After 12 months of this support, employers are eligible to transition to the time-limited CAC subsidy for the second and third years of an apprenticeship.

Under the CAC, eligible businesses will receive a 10 percent wage subsidy in the second year of an eligible apprenticeship, up to a maximum of $1,500 per quarter per person, and a 5 percent subsidy in the third year of their training, to a maximum of $750 per quarter per person.

Final claims for payment must be lodged by 30 June 2025.

As per the BAC claims, wage payment evidence must be provided.

Payment summaries & wage evidence requirements

Provision must be made for accurate and regular wage reporting through Single Touch Payroll unless an exemption from the ATO has been granted.

Please visit the Australian Taxation Office website for further information about Single Touch Payroll.

More information can be found here Single Touch Payroll

Further information on the wage subsidy

If your business is looking to or is currently employing apprentices or trainees, you can find more details on employment incentives available to you on the Available to you on the Australian Government Department of Employment and Workplace Relations website. 

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