The Boosting Apprenticeship Commencements (BAC) wage subsidy was introduced in October 2020 to support employers and Group Training Organisations (GTOs) to employ new or recommencing Australian Apprentices. It was initially limited to 100,000 places but is now uncapped.
Watch our easy video guide about how to claim the BAC subsidy:
Who is eligible for BAC?
Employers or Host Employers may be eligible for the BAC wage subsidy if:
- They engage an Australian Apprentice between October 5th 2020 and March 31st 2022
- The Australian Apprentice is undertaking a Certificate II or higher qualification
- The Australian Apprentice’s Training Contract is formally approved by the relevant State Training Authority
It applies to all businesses regardless of size, industry, or geographic location.
Can existing workers attract the BAC subsidy?
An existing worker is eligible to attract the BAC subsidy if one of the following factors apply:
- They commence a trade based Australian Apprenticeship
- Transfer from casual employment to a part-time or full-time Australian Apprenticeship
- Transfer from part-time employment to a full-time Australian Apprenticeship.
If using a Group Training Organisation (GTO), an employer or Host Employer may be eligible for the BAC subsidy for up to 30 existing workers if:
- An existing worker transfers from a casual employment arrangement to a part-time or full-time Australian Apprenticeship, or;
- An existing worker transfers from a part-time employment arrangement to a full-time Australian Apprenticeship.
No limit will apply where the existing worker is undertaking a trades-based Australian Apprenticeship. Limits apply for commencements from October 28th 2020.
How does the BAC work?
The subsidy covers up to 50% of the gross wages paid to Australian Apprentices who are signed into a Training Contract between October 5th 2020 and March 31st 2022. It applies to wages paid to an Australian Apprentice up to a maximum of $7,000 per quarter for a maximum period of 12 months from commencement or recommencement.
When are BAC wage subsidies paid?
The subsidy is paid quarterly in arrears. Final claims for payment must be lodged by June 30th 2023.
Who is not eligible for BAC?
The BAC wage subsidy is not applicable to businesses already claiming other subsidies such as the Supporting Apprentices and Trainees (SAT) subsidy or JobKeeper within the same claim period.
More information can be found here.