The Morrison Government will invest an additional $1.2 billion to support Australian businesses to employ 100,000 new apprentices or trainees as part of the COVID-19 economic recovery plan.
Starting 5 October 2020, businesses who take on a new Australian apprentice will be eligible for a 50 per cent wage subsidy, regardless of geographic location, occupation, industry or business size. The subsidy will be available to employers of any size or industry, Australia-wide who engage an Australian apprentice or trainee from 5 October 2020 until the 100,000 cap is reached.
Under the new measure, employers will be eligible for 50 per cent of the wages for a new or recommencing apprentice or trainee for the period up to 30 September 2021, up to $7,000 per quarter.
Minister for Employment, Skills, Small and Family Business, Senator the Hon. Michaelia Cash said the measure builds on the existing $2.8 billion Supporting Apprentices and Trainees wage subsidy that is helping employers to retain their apprentices and trainees.
National Retail Association (NRA) Traineeship Advisor Ginny Morris welcomed the news of further investment into on-the-job training. As the Registered Training Organisation for the peak retail body, the NRA offers specific and tailored training for retailers.
“Retail traineeships are somewhat under-utilised in Australia, despite the fact that subsidised training and Government incentives are in place. Traineeships offer small businesses an opportunity to build of pool of high-quality future recruits for the sector.”
“Employers can design the traineeships themselves, in partnership with the training provider, to ensure that the programme suits the needs of the business and the trainee. The subsidy will be an effective way to upskill our existing pool of workers and secure savings for retailers struggling from the effects of the pandemic”.
What is an apprenticeship or traineeship?
An apprenticeship or traineeship combines paid on-the-job training provided by an experienced supervisor in the workplace, with off-the-job learning through a training provider.
Traineeships can be full-time or part-time and are available to anyone of working age and at any education level including school students, school-leavers, people re-entering the workforce, and those seeking to change or advance their career.
Why should you take on an apprentice or trainee?
Employing a trainee can deliver real benefits to your business, including:
- Employers can shape the learning of trainees to suit the needs of your business, developing staff with job-specific skills and experience.
- Traineeships are an effective way of building your team. Trainees are more likely to stay with your business because you gave them the start to their career. Retaining their skills and experience is good for your business.
- Traineeships combine hands-on industry training with off-job study under a training contract between the trainee and their employer.
- Employing apprentices is cost-effective – employers can access subsidised training (subject to eligibility) and Government incentives.