The federal government has announced a $1.2 billion funding boost to its wage subsidy scheme, extending the program for another 12 months.
The extension, which is expected to generate around 70,000 new apprentice and trainee positions, is part of government plans to roll out targeted assistance for the post-JobKeeper economy.
The Boosting Apprenticeship Commencements wage subsidy program will assist apprentices and trainees who are signed up before 30 September 2021.
The program was first announced last year, with the government providing a subsidy that covered 50 per cent of wages paid to an apprentice. The extension will now be demand-driven and employers will be eligible to receive up to $7000 a quarter to hire or keep on an apprentice.
Prime Minister Scott Morrison said training and skills were at the core of the government’s response to the economic challenges faced by the Covid-19 recession.
“Creating jobs, generating economic opportunities and boosting the skills of workers right across Australia are at the heart of our National Economic Recovery Plan, as we build back from the Covid-19 recession,” says Morrison.
“The National Accounts showed the comeback of the Australian economy is underway, however, many businesses still need support, and it’s important our apprentices and trainees get opportunities to boost their skills and stay employed.
“With 100,000 new apprenticeship positions already snapped up, it highlights the confidence businesses have in the future of the Australian economy.”
Ai Group chief executive Innes Willox says this boost will provide further welcome support to the youth labour market, which has been most adversely impacted by the recent global pandemic.
“At the start of the pandemic we saw thousands of apprentices laid off and a nose-dive in apprentice commencements. This led to predictions of a 50 per cent increase in school leavers not in employment, education or training,” explains Willox.
“The new funding announced will consolidate the gains and enable more employers to take on their usual annual intake of apprentices and trainees, and in many instances, increase apprenticeship numbers.
“Even more young people will now have the opportunity to gain meaningful employment in what will often be their first job. The program will support the creation of a strong pipeline of skills to help lift the economy out of the Covid downturn.”
According to Prime Minister Morrison, about one fifth of new apprentices recruited under the scheme were over 35 years old.
“At the outset of the pandemic, we made keeping apprentices in their jobs one of our first priorities,” he says.
Morrison detailed how 40 per cent of the new apprentices and trainees have gone to small businesses, with the largest take up in the construction, food and beverage, administrative, and repair and maintenance sectors.
The scheme has been most popular in the construction sector in NSW, with 4603 businesses taking on 6477 new tradies.
“These apprentices would likely have been the first to go. Such a loss would have been devastating for our economy as years of training would have been lost and, I suspect, never recovered,” explains Morrison.
Federal Minister for Employment, Skills, Small and Family Business Michaelia Cash said this will help more people into jobs.
“This initiative has supported the creation of more than 8000 bricklayers, 6000 electricians, and almost 11,000 people in retail and hospitality work,” Cash says.
For further information on the support available to businesses and employees can be found here.
