BAC and CAC Wage Subsidies

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The Boosting Apprenticeship Commencements (BAC) wage subsidy was introduced in October 2020 to support eligible employers and Host Employers to employ new or recommencing Australian Apprentices. 

In September 2021, the Completing Apprenticeship Commencements (CAC) wage subsidy was announced to provide transitional support for BAC-eligible employers and Host Employers of Australian Apprentices undertaking their second and third years.

Please note: Registrations for the BAC wage subsidy have now been extended to 30 June 2022.

  • How do the wage subsidies work?

    The BAC wage subsidy provides up to 50% of gross wages paid to an eligible and registered Australian Apprentice to a maximum of $7,000 per quarter, for a maximum period of 12 months from commencement or recommencement.

    The CAC wage subsidy provides up to 10% of the gross wages paid to a BAC-eligible Australian Apprentice to a maximum of $1,500 per quarter during the second year of employment. In the third year of employment, it provides a subsidy of up to 5% of gross wages up to a maximum of $750 per quarter.

    The subsidies are paid quarterly in arrears. Final claims for payment are 30 June 2024 for the BAC and 30 June 2026 for the CAC.

  • How do I claim the wage subsidies?

    Employers must register and use Single Touch Payroll for wage reporting to the ATO. Wages must be fully and accurately reported via Single Touch Payroll for the quarter before a claim form is lodged.

Watch our easy video about claiming the BAC and CAC wage subsidies:

  • Is my business eligible to receive the wage subsidies?

    The BAC and CAC subsidies have been designed to support employers and Host Employers of all businesses, regardless of their size, industry, or geographic location.

    Employers or Host Employers who are receiving other government wage subsidies or equivalent assistance, such as the Supporting Apprentices and Trainees (SAT) subsidy or JobKeeper, are not eligible for BAC or CAC support for the same claim period. 

    Where the Australian Apprentice is placed with a Host Employer, the Group Training Organisation (GTO) must provide a written statement confirming that the payment will be passed on to the Host Employer.

    What if my Australian Apprentice is a school leaver?

    To be eligible, your Australian Apprentice must be:

    • Completing a Certificate II or higher qualification
    • Signed into a Training Contract between 5 October 2020 and 30th June 2022 that has been formally approved by the relevant State Training Authority (STA)

    What if my Australian Apprentice is an existing worker?

    You may be eligible if the existing worker is pursuing a trade-based Australian Apprenticeship. If they are not pursuing a trade-based Australian Apprenticeship, you may be eligible for up to 30 existing workers who, on or after 28 October 2020, transferred to a:

    • Full-time Australian Apprenticeship from part-time employment 
    • Part-time or full-time Australian Apprenticeship from casual employment 

Find out more about the BAC and CAC wage subsidies here.

  • New claims process

    The Department of Education, Skills and Employment (DESE) is changing the way BAC and CAC wage subsidies are processed.

    For wages paid from 1 January 2022, Services Australia will directly process any BAC or CAC claims that fall due from 1 April 2022.

    To assist in this process, you will be required to document the claims and upload the associated wage evidence to the new Apprenticeship Data Management System (ADMS).

    From 11 April 2022, you will be able to register for an ADMS account on the ADMS portal. If you need assistance setting up your account, you can call the National Customer Service Line on 1800 020 108 to be activated on this date.

    Preparing for the new process

    You can take these steps now to prepare for the transition to ADMS:

    1. Create your Digital Identity with myGovID by visiting www.mygovid.gov.au or calling                   1300 287 539 and selecting option 2

    2. Connect your myGovID to your business with the Relationship Authorisation Manager (RAM). You can call 1300 287 539 and select option 3 for assistance.
    Please refer to these fact sheets about ADMS for further information and support