Supporting Apprentices and Trainees wage subsidy extended
The Australian Government has extended and expanded the Supporting Apprentices and Trainees wage subsidy, to include medium-sized businesses who had an eligible apprentice in place on 1 July 2020.
This may be of particular interest to employers who are not eligible for the JobKeeper extension.
What is the Supporting Apprentices and Trainees wage subsidy?
The Supporting Apprentices and Trainees wage subsidy is part of the Australian Government’s COVID-19 Economic Response. This initiative is designed to keep apprentices and trainees employed and help businesses manage their cashflow challenges.
How much is the subsidy?
Eligible employers will receive a wage subsidy of up to 50 per cent of the wages paid until 31 March 2021 worth up to $7,000 per quarter, per eligible apprentice or trainee, reimbursed in arrears.
What is changing?
In addition to the existing support for small businesses, medium-sized businesses will now be eligible for the subsidy, for wages paid from 1 July 2020 to 31 March 2021.
Subsidies will also be available to any new employer who re-engages an eligible apprentice that was displaced by an eligible small or medium sized business.
For small businesses, the eligibility requirements have been expanded to include apprentices or trainees employed from 1 July 2020 (previously it was 1 March 2020).
Who is eligible for the subsidy?
Your small business may be eligible if:
- you employ fewer than 20 people; or
- you are a small business with fewer than 20 people, using a Group Training Organisation; and
- the apprentice or trainee was undertaking an Australian Apprenticeship with you on 1 July 2020 for claims after this date. Claims prior to 1 July 2020, will continue to be based on the 1 March 2020 eligibility date.
Your medium-sized business may be eligible if:
- you employ fewer than 200 people; or
- you are a medium business with fewer than 200 people, using a Group Training Organisation; and
- the apprentice or trainee was undertaking an Australian Apprenticeship with you on 1 July 2020.
Any employer (including all small, medium or large businesses and Group Training Organisations) who re-engages an apprentice or trainee displaced from an eligible small or medium business may also be eligible for the subsidy.
Claims from small businesses are now open, while claims from medium-sized businesses will open on 1 October 2020. Final claims for payment must be lodged by 30 June 2021.
For further information on how to apply for the subsidy, including information on eligibility, contact Australian Apprenticeship Support Network provider.
Got a question about the Supporting Apprentices and Trainees wage subsidy? Please don’t hesitate to get in touch with us.