Financial support for employers and Australian Apprentices

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The Australian Apprenticeships Incentive System (Incentives System) provides a range of support to eligible employers to ensure Australians receive quality training while in paid employment.

 The Incentives System is focused on attracting and retaining Australian Apprentices in priority occupations that reflect a strong current and projected demand, as laid out in the Australian Apprenticeships Priority List (Priority List).

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    Priority Hiring Incentive

    The Priority Hiring Incentive is focused on supporting employers to hire Australian Apprentices in priority occupations. It is open to employers whose apprentices commence from 1 July 2024 and is targeted to the first year of the Australian Apprenticeship.

    Eligible employers and Group Training Organisations (GTOs) that hire a new or an existing worker in a priority occupation can claim up to a maximum of $5,000 for full-time apprentices and $2,500 for part-time apprentices.

    Am I eligible?

    To attract the Priority Hiring Incentive, the employer’s Australian Apprentice must:

    • Have commenced or recommenced their Australian Apprenticeship on or after 1 July 2024; or  
    • Have recommenced their Australian Apprenticeship with their original employer on or after 1 July 2024, where the period of cancellation or suspension was greater than six months; and  
    • Be undertaking a qualification at the Certificate III, Certificate IV, Diploma or Advanced Diploma level qualification which is aligned to an occupation that is on the Australian Apprenticeships Priority List; and   
    • Must be in training with their employer on the Claim period due date

    In addition to the above requirements, employers must not be in receipt of the Disability Australian Apprentice Wage Support (DAAWS) or any other form of Australian Government or equivalent assistance for the same Australian Apprenticeship.  

    The Training Contract must also be formally approved by the State Training Authority (STA). The Australian Apprentice’s prior qualifications may affect eligibility for the Priority Hiring Incentive.  

    There is no limit on the number of Australian Apprentices an employer can claim for, provided they meet the relevant eligibility criteria for the Priority Hiring Incentive. 

    For further information visit apprenticeships.gov.au.

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    BAC and CAC wage subsidies

    BAC and CAC claim periods and time limits

    The timeframe to lodge BAC or CAC claims for any wages paid from 1 January 2022 to 30 June 2023 closed on 31 December 2023. BAC/CAC claims for this period can no longer be accepted or lodged via ADMS. The Department of Employment and Workplace Relations (DEWR) has established a waiver process to account for employers who may have encountered exceptional circumstances beyond their control that prevented them from submitting the claim before the 31 December 2023 deadline.

    Australian Apprenticeships Incentives Program (AAIP) Guidelines Part G, 4.4 Consideration of exceptional circumstances, define exceptional circumstances as:

    Circumstances that are unusual, uncommon, or unexpected, and are outside of the control of the claimant including:

    • an unexpected event that has affected the Claimant, such as a natural disaster or other serious unforeseen disruption to the business; or
    • circumstances which mean requirements under the Incentives Program cannot be met, such as an Australian Apprentice being affected by illness, injury, or trauma

    Waiver requests clearly demonstrating exceptional circumstances apply can be submitted to MEGT for escalation to the DEWR delegate, noting all submissions must be made before 31 March 2024. The Department will not accept any waiver requests submitted beyond this date.

    CAC claim periods and time limits

    Dates wages paid Date CAC claim application available from
    1 July 2023 – 30 September 2023 1 October 2023
    1 October 2023 – 31 December 2023 1 January 2024
    1 January 2024 – 31 March 2024 1 April 2024
    1 April 2024 – 30 June 2024 1 July 2024
    1 July 2024 – 30 September 2024 1 October 2024
    1 October 2024 – 31 December 2024 1 January 2025
    1 January 2025 – 31 March 2025 1 April 2025
    1 April 2025 – 30 June 2025 1 July 2025

    CAC claims for wages paid between 1 July 2023 to 30 June 2025 must be submitted in the Apprenticeships Data Management System (ADMS) by 31 December 2025. All employers must register for ADMS to access any of the incentives within the Incentives System.

    For assistance setting up your ADMS access click here.

    If you need further help on 'How to register for an ADMS account' click here or view MEGT's ADMS video below.

    Important Note: While the video refers to Priority Wage Subsidy and Hiring Incentive (under the Incentives System) the same steps apply to set up an ADMS account to lodge CAC claim applications.

    Additional support on ‘How to claim a wage subsidy in ADMS’ is available here (video)

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    Priority Wage Subsidy

    The Priority Wage Subsidy ceased to new entrants on 30 June 2024. Eligible employers can continue to claim where assessed as eligible prior to 30 June 2024.

    Under the grandfathered Priority Wage Subsidy, the following payments are made (in arrears) to eligible employers, over a maximum of three years:

    • First year: 10% of wages paid, up to a maximum of $1500 per quarter  
    • Second year: 10% of wages paid, up to a maximum of $1500 per quarter  
    • Third year: 5% of wages paid, up to a maximum of $750 per quarter

     The first payment is made three months after commencement. Subsequent payments are made quarterly.  

Accessing financial support and making a claim 

Eligible employers can lodge their claims through the Apprenticeships Data Management System (ADMS). Employers need only to set up their ADMS account once to lodge all claim types.

For assistance registering for an ADMS account or using ADMS visit apprenticeships.gov.au.

Financial support for apprentices and trainees

Apprentices and trainees may also be eligible for financial support. These supports offer an incentive to follow certain career pathways, and can help with cost-of-living expenses including purchasing ‘tools of the trade’.

Find out more about the financial support available to apprentices and trainees.

Important information

Payment of incentives and personal benefits is subject to employers and Australian Apprentices satisfying eligibility criteria as set out in the Australian Apprenticeships Incentives System Guidelines.

These incentives, and the eligibility criteria, can change from time to time. MEGT Apprentice Connect Provider staff can advise which incentives are relevant to your industry and business and which incentives you are eligible to receive. There is no charge involved in gaining advice from MEGT Apprentice Connect Provider as it is a Government-funded service.

In addition to the Federal Government incentives and benefits, State Governments focusing on local skills shortages may also provide benefits as an encouragement to employ Australian Apprentices. These benefits vary depending on market needs to stimulate the economy. MEGT Apprentice Connect Provider staff will advise you of funding for which you may be eligible.

You may also be eligible for the following Government financial incentives and assistance depending on your State:

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    New South Wales

    Exemption from Workers Compensation Insurance premiums – Apprentices

    Employers may receive exemptions from workers compensation premiums for their apprentices through the Apprentice Incentive Scheme. This exemption is not available to employers of trainees.

    Visit workcover.nsw.gov.au or download our factsheet for more information.

    Continuing Apprentices Placement Service (CAPS)

    Apprentices and trainees in skills shortages occupations and affected by economic downturn may register their details for a free job matching service. They may also be entitled to financial assistance up to a maximum of $2,500 to relocate to or from a regional area to continue their apprenticeship or traineeship.

    Visit training.nsw.gov.au or apprenticeships.gov.au for more information.

    Payroll tax rebates

    The Office of State Revenue administers an offset rebate scheme for approved apprentices and new entrant trainees. Rebates are provided by allowing the amount of the rebate to be offset against monthly payroll tax payments.

    Visit osr.nsw.gov.au or download our factsheet for more information.

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    Queensland

    Payroll Tax exemptions

    The Office of State Revenue offers an incentive rebate to encourage employers to keep or increase their employment of apprentices and trainees. Wages paid to apprentices and new entrant trainees are generally exempt from payroll tax.

    Visit treasury.qld.gov.au for more information.

    Skilling Queenslanders for Work Initiative

    Community organisations with not-for-profit objectives, in partnership with Registered Training Organisations with Pre-Qualified Supplier (PQS) status, will be able to apply for funding to start projects in local communities across Queensland.

    These programmes are designed to create opportunities for eligible job seekers who are under-utilised or under-employed, as well as building the skills of young people, Aboriginal and Torres Strait Islander peoples, people with disability, mature-aged job seekers and people from culturally and linguistically diverse backgrounds.

    Visit desbt.qld.gov.au/sqw for more information.

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    Victoria

    WorkCover exemption

    Some apprentice/trainee remuneration is exempt from WorkCover Insurance.

    Visit the WorkSafe website for more information.

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    Western Australia

    Payroll Tax exemptions

    Visit finance.wa.gov.au for more information.

    Construction Training Fund

    The Construction Training Fund supports employers to train apprentices in a range of construction trades in WA. If you employ an apprentice through direct indenture or a group training scheme, the Construction Training Fund can provide grants of up to $21,000 to help reduce the cost of training.

    The Construction Training Fund Direct Indenture Program supports businesses and/or subcontractors who are the employers of an apprentice for the duration of a training contract registered with the Department of Training and Workforce Development.

    Visit ctf.wa.gov.au/employer-funding for more information.

    Employer Incentive Scheme

    Through the WA Employer Incentive Scheme (EIS), you could be eligible for up to $8,500 for apprentices and up to $4,250 for new entrant trainees signed up on or after 1 July 2019. Visit jobsandskills.wa.gov.au or download our factsheet for more information.