After a financially difficult year for most, many small and medium-sized businesses are looking to reduce costs in the year ahead. Unfortunately, when reducing costs, some of the first people to go are Apprentices and Trainees. But before you cut them loose, did you know you can get 50% of eligible apprentices and trainees’ wages subsidised by the Australian Government?
Here is what you need to know.
The JobTrainer package, announced on 16 July 2020, was created as part of the government’s Economic Recovery and Growth Plan with the intention to provide an additional 340,700 training places for school leavers and job seekers. To do this, 50% of eligible trainees and apprentices’ wages costs are subsidised for businesses, up to a total of $7,000 per quarter.
As a small business owner, you can access this subsidy providing you meet the following criteria:
· You have less than 20 employees
· Your apprentices and trainees have come through a Group Training Organisation
· Your apprentice or trainee was undertaking an Australian Apprenticeship with you at 1 July 2020
And as a medium-sized business, you can access this subsidy under the following criteria:
· You have less than 200 employees
· Your apprentices and trainees have come through a Group Training Organisation
· Your apprentice or trainee was undertaking an Australian Apprenticeship with you at 1 July 2020
And for those businesses whose Apprentices and Trainees were displaced during the year, you may also be eligible for the subsidy if you re-engage them.
To find out if your Apprentice or Trainee is eligible, an assessment will need to be undertaken by the Australian Apprenticeship Support Network (AASN) provider with their wages subsidised until 31 March 2021.
The best part about the JobTrainer subsidy, is that there are no limits on how many Apprentices and Trainees you can receive the subsidy for (providing they are eligible.) So as a business owner, you could potentially get 50% of wages covered for ALL your apprentices.
For further information about the JobTrainer program, check out the Department of Education, Skills and Employment website here: https://www.dese.gov.au/supporting-apprentices-and-trainees
REFERENCES
JOBTRAINER FACT SHEET – https://www.dese.gov.au/supporting-apprentices-and-trainees/resources/supporting-apprentices-and-trainees-questions-and-answers PRESS RELEASE – https://www.pm.gov.au/media/jobtrainer-skills-package-economic-recovery-and-growth
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General Advice Warning: This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.