Federal Budget 2019-20

The following financial incentives will be available to employers and Australian Apprentices in sectors facing skills shortages:

Employers

• An additional $4,000 in incentives ($2,000 after 12 months and $2,000 at completion) will be available for employers signing up new apprentices or trainees in areas of identified skills needs on or after 1 July 2019.
• This incentive will be in addition to the existing standard employer incentives of $1,500 at commencement and $2,500 at completion of an apprenticeship.

Australian Apprentices

• New Australian Apprentices in areas of identified skills needs who are signed up on or after 1 July 2019 may also be eligible for a total of $2,000 ($1,000 after 12 months and $1,000 at completion).

Eligible occupations will be reviewed annually, and currently include:

• Carpenters and joiners
• Plumbers
• Hairdressers
• Air-conditioning and refrigeration mechanics
• Bricklayers and stonemasons
• Plasterers
• Bakers and pastry cooks
• Vehicle painters
• Wall and floor tilers
• Arborists

To provide Australians with the fundamental skills they need to succeed in further education and employment, a new $62.4 million foundational language, literacy, numeracy and digital skills program will be introduced.

A further $50.6 million will be invested in establishing 10 new Training Hubs across Australia to tackle youth unemployment by creating better connections between industry and schools.

Effective 1 July 2020, further funds will be invested in the Vocational Education and Training (VET) sector to streamline employer incentives and establish a consistent national approach to apprenticeships and traineeships.

These funds include:

• $2.8 billion annual investment in research and reform
• $44 million to streamline incentives for employers of apprentices and trainees, and modernise the skills needs list
• $34.2 million to support new apprenticeships through the Skilling Australians Fund National Partnership Agreement
• $10 million to develop skills in areas of need by building innovative partnerships between schools, employers and the VET sector
• $8.5 million to address youth unemployment by providing scholarships across Australia and increasing awareness of the VET sector and the Australian Apprenticeships programme.