Incentives for training staff

Financial Incentives for Australian Apprenticeships

The Australian Government provides eligible businesses with financial Incentives for the

skills training of new staff
skills training of existing staff
employment of Australian Apprentices.

Financial Incentives for training staff and for employing apprentices or trainees

The Australian Government provides a variety of financial Incentives for eligible employers and Australian Apprentices. These Incentives can change from time to time and eligibility criteria applies in order to receive them. MEGT Australian Apprenticeships Centre staff are able to advise which Incentives are relevant to your industry and business and for which you are eligible.

There is no charge involved in gaining advice from MEGT Australian Apprenticeships Centre as it is a government funded service.

State and Federal governments also provide other financial Incentives as an encouragement to employ Australian Apprentices. This funding varies depending on market needs to stimulate the economy. MEGT Australian Apprenticeships Centre staff will advise you of funding for which you may be eligible.

Click here to see a summary of Australian Government Employer Incentives.

Incentives for training new staff

If you directly employ an Australian Apprentice, your business may be eligible for government financial incentives. MEGT Australian Apprenticeships Centres facilitate those payments.

There are standard Incentives of up to $4,000 and a range of additional Incentives for eligible employers.

The Commonwealth and State Governments provide a range of financial incentives to assist employers train their staff through the Australian Apprenticeships program. The State Government will pay for the bulk of the training costs for your apprentice or trainee as long as they are a new employee to your business.

Eligibility for the financial incentives depends on a range of factors that need to be assessed.

MEGT’s Australian Apprenticeships Centre staff can help determine whether you and your apprentice or trainee are eligible. We can assist you in completing your claim application forms and will arrange payment of your Government incentives.

For existing staff

Current employees can access training and financial incentives in certain circumstances.

Your MEGT Australian Apprenticeships Centre Consultant will be able to advise you on the eligibility criteria for your existing staff. Click here to find out more about the government’s Skills for the Future initiative.

Productivity Places Program:

As part of its Skilling Australia for the future initiative, the government recognises the importance of nationally endorsed training in assisting job seekers or existing staff to acquire skills and gain lasting employment and assisting existing workers to update or upgrade their skills.

The government has allocated 645 000 training places over five years to ensure that Australians develop the skills that industry needs. The training places will be delivered in an industry-driven system, ensuring that training is more responsive to the needs of enterprises and individuals.

In 2009, the existing workers component of the Productivity Places Program will be rolled out fully, with a great deal of interest being shown by workers looking to increase their skill levels.

392,000 training places allocated to existing workers wanting to gain or upgrade their skills

319,000 (including 20,000 structural adjustment places) allocated to job seekers

Up to 10,000 existing worker places have already been made available from August 2008 to December 2010 through Memoranda of Understanding with every State and Territory. These will be greatly enhanced through the delivery of places under the National Partnership Agreement signed at COAG in November 2008.

10 000 places for the Targeted Productivity Places Program (TPPP) for newly retrenched workers at the Certificate III level and Certificate IV level commencing 1 July 2009.

The TPPP builds on the 10,000 Structural Adjustment places available in 2008/2009 for retrenched workers.

Further assistance for jobseekers to improve their skills was announced as part of the $42 billion Nation Building and Jobs Package.

The Learning and Training Bonus effectively increases the Education Entry Payment, an incentive payment aimed at getting people the skills they need to get back into work, from $208 to $1158.

Diploma and Advanced Diploma level training

Take advantage of the opportunity to upskill your staff and improve the productivity of your business. Australian government funding of $4,000* is now availablefor Diploma and Advanced Diploma level qualifications. *eligibility criteria apply.

Taxation benefits for skills training

Please visit http://www.ato.gov.au/businesses/content.asp?doc=/content/19898.htm&page=1#P25_2225 for information on Taxation assistance for skills training.

*conditions apply

Incentive	Details
Standard Commencement, Recommencement and Completion Incentives	$1,250 incentive for an employer who commences an Australian Apprentice in Certificate II training; or $1,500 incentive for an employer who commences an Australian Apprentice in Certificate III, IV or Diploma or Advanced Diploma qualifications. $750 incentive for employers recommencing Australian Apprentices at the Certificate III, IV or Diploma or Advanced Diploma level. Employers of Australian Apprentices who successfully complete a Certificate III, IV or Diploma or Advanced Diploma qualification may be eligible to receive the $2,500 completion incentive.
Innovation - Special Commencement	$1,100 special incentive for an employer who employs an Australian Apprentice in an eligible innovation Training Package qualification at the Certificate III or IV level.
Rural and Regional Incentive- Special Commencement	$1,000 special incentive for Rural and Regional Australian Apprenticeships where the Australian Apprentice commences a Certificate III or IV qualification in a National Skill Needs List occupation in a non-metropolitan area.
Australian School-based Apprenticeships	$750 additional incentive for an employer who employs an Australian Apprentice in an endorsed Australian School-based Apprenticeship at the Certificate II to IV level or in a Diploma or Advanced Diploma qualification.
- Additional Commencement and Retention	$750 for an employer who continues to employ a Certificate II to IV level or Diploma or Advanced Diploma Australian School-based Apprentice after the student has completed Year 12.
Declared Drought Areas	$1,500 additional incentive for employers of eligible Certificate II Australian Apprentices who have a current Exceptional Circumstances Drought Area certificate.
-Additional Commencement and Special Completion	$1,500 special incentive for employers on the successful completion of eligible Certificate II Australian Apprentices who attracted a Declared Drought Areas additional commencement incentive.
Mature Aged Worker	$750 special incentive for an employer who commences an eligible Certificate II or higher level Australian Apprentice who is a disadvantaged person aged 45 years or more.
- Special Commencement and Special Completion	$750 special incentive for an employer on the successful completion of a Certificate II or higher level Australian Apprentice who attracted a Mature Aged Worker special commencement incentive.
Group Training Organisations - Special Completion	$1,000 special incentive for Group Training Organisations that support Australian Apprentices to complete a Certificate II Australian Apprenticeship.
Assistance for Australian Apprentices with Disability	The Program provides additional assistance to eligible employers who employ a Certificate II or higher level Australian Apprentice with disability. Assistance may include a wage support payment or tutorial, interpreter and mentor services.
Living Away From Home Allowance (LAFHA)	Australian Apprentices may be eligible for up to twelve months of LAFHA at the first year rate of $77.17 per week, a further twelve months assistance at the second year rate of $38.59 per week, and a further twelve months assistance at the third year rate of $25 per week if the Certificate II or higher level Australian Apprentice had to move away from their parental/guardian home to commence or remain in an Australian Apprenticeship, or is homeless.
Support for Adult Australian Apprentices	Australian Government financial support is available for adult workers (aged 25 years or over) to upgrade their skills through an Australian Apprenticeship at the Certificate III or IV level in an occupation listed on the National Skills Needs List. From 1 January 2010, Australian Apprentices aged 25 years or more at commencement or who previously attracted Support for Mid-Career Apprentices payments may be eligible to attract Support for Adult Australian Apprentices. The payment is made to either the employer or the Australian Apprentice depending on the actual wage paid to the Australian Apprentice and is set at $150 per week (up to a maximum of $7,800 per annum) in the first year and $100 per week (up to a maximum of $5,200 per annum) in the second year. The weekly rate for part-time Australian Apprentices is $75 per week for the first 24 months and $50 per week for the second 24 months.
Tools For Your Trade Payment	From 1 January 2010, the Tools For Your Trade payment initiative is available to eligible Australian Apprentices in selected trade occupations on the National Skills Needs List, agricultural occupations, and, if in rural and regional Australia, horticulture occupations. This payment comprises of five tax exempt cash payments totalling $3,800, paid over the life of the Australian Apprenticeship. Payments of $800 are paid at the three, 12 and 24 month points and $700 at the 36 month point and on completion.
Further Australian Government Assistance available for Australian Apprentices	Australian Apprentices may be eligible for income support through Youth Allowance, Austudy or ABSTUDY. More information is available from Centrelink on 13 36 33.
Securing Australian Apprenticeships Initiative	The Securing Australian Apprenticeships initiative provides financial support to employers who create new opportunities for eligible Australian Apprentices to continue their incomplete (but formally STA approved) training, or who successfully complete Australian Apprentices, at the Certificate III or IV level in skill shortage trades, or in Diploma or Advanced Diploma level qualifications.
-Recommencement Bonus and Completion Bonus	Up to $2,800 for employers of eligible Australian Apprentices undertaking an occupation listed on the National Skills Needs List or Diploma and Advanced Diploma level qualifications. This consists of: · Recommencement Bonus of $1,800 payable 12 weeks after recommencement where the recommencements occur on or after 1 January 2009. · Completion Bonus of $1,000 payable upon successful completion in respect of Australian Apprentices who successfully complete on or after 1 January 2009. Payments will be made through Australian Apprenticeships Centres and will be available until 31 December 2010.
Securing Australian Apprenticeships through Registered Training Organisations	Registered Training Organisations (RTOs) receive either $1,250 or $2,500 to assist eligible out-of-trade Australian Apprentices to continue the off-the-job training component of their Australian Apprenticeship. This is available for all Certificate III, IV and Diploma and Advanced Diploma qualifications. RTOs must apply for funding before commencing the training.

MEGT's Australian Apprenticeships Centre assists you with all the processes required in employing an apprentice or trainee, providing advice on training options and assisting with Training Contract signup and lodgements.

MEGT makes apprenticeships, traineeships and training happen.