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New apprentice/trainee incentive arrangements - Circular 27.5

To Chief Executive Officer
Corporate Services Staff
Employee Relations - Human Resources
Information -Technology Staff
Policy and Strategic Planning Staff
Date 3 July 2019
Contact Natasha Black
Response Required No
Summary A number of new incentive payments for apprentices/trainees and their employers that were unveiled in the Federal Budget and during the election campaign, came into effect on Monday 1 July.

The government committed to creating an extra 80,000 apprenticeships/traineeships as part of its skills policies and made a number of specific promises to start on 1 July 2019. They are: 

  • The second phase of the Australian Apprentice Wage Subsidy trial, which supports employers in regional areas facing skills shortages. The program has been doubled to support an extra 1600 apprentices through a wage subsidy of 75% of the apprentice award wage in the first year, 50% in the second and 25% in the third.
  • An identified skills shortage payment which will provide eligible apprentices with $1000 after 12 months and $1000 on completion, while employers will receive $2000 after 12 months and $2,000 on completion.
  • A reduction from 25 to 21 years in the age requirement for the Support for Adult Australian Apprentices incentive.

The government also committed to ten new industry training hubs and a complete overhaul of the current system of apprentice/trainee incentive payments.

See the latest Australian Apprenticeships Incentives Program Guidelines.

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