Since the Federal Government launched the Supporting Apprentices and Trainees measure on Thursday 2 April, more than $100 million has been paid out to almost 13,000 employers assisting 22,035 apprentices and trainees to remain on the job.
As part of this initiative, the wage subsidy was extended to provide support to Group Training Organisations (GTOs).
GTOs are organisations that employ apprentices and trainees, and then place them with a host employer who they work for whilst receiving on-the-job training during their apprenticeship or traineeship. They are considered the legal employer of the apprentice or trainee and take the hard work and administration out of recruiting, training and employing apprentices and trainees in any business.
There are two types of payment:
1. A wage subsidy reimburses up to 50% of an Australian apprentice’s gross wage over a nine-month period from 1 January to 30 September 2020 (where the GTO message the relevant retention of re-engagement criteria).
2. A $1,500 fortnightly payment paid over a six-month period between 1 April to 30 September 2020 (where the GTO meets the relevant expanded GTO criteria).
Visit the Australian Government Department of Education, Skills and Employments website for more information on the criteria.
Once the claim has been approved, the subsidy will be paid to the employer. An Apprenticeship Network Provider like Apprenticeship Support Australia can assist employers in determining their eligibility for the incentive.
As apprenticeships and traineeships will continue to play a key role in Australia’s economic recovery, this initiative is a welcome relief for GTOs, host employers and apprentices to ensure the same level of wage assistance as other employees, and to help keep apprentices connected to their employers.