Financial support for employers and Australian Apprentices

Employers from industries on the Priority List may potentially be eligible for the Priority Wage Subsidy for each Australian Apprentice they supervise. This is regardless of whether they contract them directly or as part of a Group Training arrangement. 

Under the 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.

Am I eligible?

To attract this subsidy an employer’s Australian Apprentice:

• Must be in one of the occupations on the Priority List
• Must be undertaking a Certificate III or higher qualification that is on the Priority List
• Not be undertaking a previously completed qualification that leads to the same occupation or one that supersedes a previously completed qualification, unless it was completed more than seven years ago or completed overseas 

To be eligible to claim the subsidy, an employer:

• Must register and use Single Touch Payroll for wage reporting to the Australian Tax Office, unless they have been granted an exemption
• Must provide accurate wage evidence and submit their claims within 12 months of the effect date
• Must not be claiming the Disability Australian Apprentice Wage Support subsidy or any other federal, state or territory government wage subsidy or equivalent for the same Australian Apprentice

Employers who are not operating within Priority List industries may be eligible for the Hiring Incentive. Each full-time Australian Apprentice may potentially attract $3,500 for their employer, or $1,750 if they are part-time.

Both the full-time and part-time amounts are paid in two equal instalments, six and 12 months after commencement. 

Am I eligible?

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

• be undertaking a Certificate II level qualification leading to any defined occupation; or
• be undertaking a qualification at the Certificate III or higher level that has an occupational outcome not listed on the Priority List; and
• not be an existing worker (ie: in an employment relationship with their employer) for more than three full-time equivalent months, including approved leave; and
• not be undertaking a previously completed qualification that leads to the same occupation, or a qualification that supersedes a previously completed qualification, unless it was completed more than seven years ago or overseas

To be eligible to claim the Hiring Incentive, an employer:

• Must retain their Australian Apprentice in-training at each point a scheduled payment is claimed (Where an Australian Apprentice successfully completes the Australian Apprenticeship before a scheduled payment can be claimed, the employer will not be eligible to claim the Hiring Incentive.)
• Must not be claiming the Disability Australian Apprentice Wage Support subsidy for the same Australian Apprentice
• Employers of school-based apprentices may be able to claim the 12 month Hiring Incentive via a waiver process. This attracts the part-time rate of $875. For an employer to be able to claim via this method the school-based apprenticeship must have completed after nine months but before 12 months and the apprentice must remain in employment with the employer, including on the 12-month effect date. Evidence must be provided to support the waiver request

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

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)

CAC claims that fall due from 1 October 2023 onwards must be made via ADMS. Similarly, claims for Priority Wage Subsidy and Hiring Incentive are made via ADMS. Employers need only set-up their ADMS account once to lodge all claim types.

To set up an ADMS account you need to:

1. Create a Digital Identity with myGovID. You can start this process by visiting www.mygovid.gov.au and following the prompts, or calling 1300 287 539 and selecting option 2
2. Connect your myGovID with your business through the Relationship Authorisation Manager (RAM). If you need assistance, call 1300 287 539 and select option 3
3. Register for an account on the ADMS Portal at https://adms.australianapprenticeships.gov.au/adms/sign-in You will need to select “Continue with Digital Identity”

Alternatively, if you are new to ADMS, you can visit https://adms.australianapprenticeships.gov.au/adms/how-to-access

Once an ADMS account has been set up, an employer can use their myGovID to log on to ADMS at any time to lodge claims and upload supporting wage evidence.

For assistance setting up an ADMS account, you can contact the National Customer Service Line on 1800 020 108 and select option 3, or refer to these fact sheets: www.australianapprenticeships.gov.au/About-ADMS

Find out more

To find out more about the employer incentives available under the Incentive System, visit https://www.australianapprenticeships.gov.au/aus-employer-incentives 

To encourage them to stay in their Australian Apprenticeship and assist with cost-of-living pressures, apprentices and trainees operating in priority occupations may be potentially eligible for the Apprentice Training Support Payment. 

Every six months, for a maximum of two years, they will receive a direct payment of up to $1,250 for a single full time Australian Apprenticeship, or $625 for part time apprentices. This is capped at $5,000 for full-time, and $2,500 for part-time Australian Apprentices.

The Apprentice Training Support Payment is also available to existing workers, provided the following eligibility conditions are met.

Is my Australian Apprentice eligible?

To be eligible for the Apprentice Training Support Payment, an apprentice must:

• Be undertaking a Certificate III or IV, or a Diploma or Advanced Diploma from the Priority List
• Be training towards a priority occupation from the Priority List
• Not be undertaking a previously completed qualification that leads to the same occupation or one that supersedes a previously completed qualification, unless it was completed more than seven years ago or completed overseas 

Note that in circumstances where the Australian Apprentice recommences with the same employer after a period of suspension or cancellation of their Training Contract, their support payment claim period will be extended for the equivalent time.

How do they claim the payment?

Australian Apprentices who are eligible for the Apprentice Training Support Payment, must lodge their claim through the ADMS.

Find out more

To find out more about the Apprentice Training Support Payment, visit https://www.australianapprenticeships.gov.au/aus-apprenticeships-incentives

New Energy Apprentice Support Payment

The New Energy Apprentice Support Payment (NEASP) provides up to a maximum of $10,000 in direct financial assistance, over the life of the Australian Apprenticeship, to Australian Apprentices (AAs) commencing in an occupation listed on the Australian Apprenticeships Priority List (Priority List) and identified as a clean energy occupation.
Employers may be eligible to claim the Priority Wage Subsidy for Australian Apprentices who commence in a qualification and occupation identified as leading to a clean energy apprenticeship pathway. For the AA to qualify for NEASP, the employer must demonstrate:

• Business engagement and operation in the clean energy sector; and
• The Australian Apprentice is provided with a significant proportion of their work in the clean energy sector, on an ongoing basis and at commencement or recommencement, and;

A signed declaration must be received from:

1. The Australian Apprentice stating their commitment to build skills in the clean energy sector, including selecting clean energy electives in their training, where available and appropriate, and;
2. Their employer stating their commitment to provide ongoing on the job training in a clean energy work and/or project(s).

In addition to the above requirements, the Australian Apprentice must not be in receipt of the Australian Apprentice Training Support Payment (AATSP) for the same Australian Apprenticeship.

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 www.workcover.nsw.gov.au or download our fact sheet 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 www.training.nsw.gov.au and www.australianapprenticeships.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 www.osr.nsw.gov.au or download our fact sheet for more information.

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 www.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 www.desbt.qld.gov.au/training/training-careers/incentives/sqw for more information.

Employment Incentive Scheme Payroll Tax Rebate (EISPR4)

EISPR4 provides payroll tax relief for employers in eligible industry sectors to help create additional employment in Tasmania. These include apprentice and trainee positions.

Visit www.sro.tas.gov.au or download our fact sheet for more information.

WorkCover exemption

Some apprentice/trainee remuneration is exempt from WorkCover Insurance.

Visit www.worksafe.vic.gov.au or download our fact sheet for more information.

Payroll Tax exemptions

Visit www.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 www.bcitf.org 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 this page or download our fact sheet for more information.