AUSTRALIAN GOVERNMENT GRANTS AND ASSISTANCE APPRENTICESHIP INCENTIVE OVERVIEW ASSISTANCE FOR EMPLOYERS. Paper CONTENTS
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1 AUSTRALIAN GOVERNMENT GRANTS AND ASSISTANCE APPRENTICESHIP INCENTIVE OVERVIEW ASSISTANCE FOR EMPLOYERS CONTENTS Page 1. Overview Of The Australian Apprenticeship Program Australian Apprenticeship Centres Incentive Programme Employer Benefits Employing An Apprentice Group Training Organisation Standard Incentives Special Rural and Regional Skills Shortages Incentives Mature Aged Worker Incentives Australian School Based Apprenticeships Declared Drought Areas Assistance For Apprentices With Disabilities Adult Apprentices National Skills Needs' List Existing Workers Who Become Apprentices Professional Advice... 7 ADDENDUMS A Australian Apprenticeships - National Skills Needs' List B Building And Construction Industries - National Skills Needs' List C Engineering Industries - National Skills Needs' List ESS BIZTOOLS PTY LTD - ACN: Page 1
2 AUSTRALIAN GOVERNMENT GRANTS AND ASSISTANCE APPRENTICESHIP INCENTIVES OVERVIEW ASSISTANCE FOR EMPLOYERS 1. Overview Of The Australian Apprenticeship Program The Australian government has introduced a number of initiatives which will assist employers who agree to employ an Australian apprentice, particularly where the apprentice is hired by a business in a trade experiencing a skills shortage. The objective of the program is to develop a more skilled Australian workforce. This is achieved by encouraging employers to offer opportunities for skills-based training of their employees with the Australian government offering financial incentives to employers who employ and train an apprentice or trainee. The government also funds a range of personal benefits for apprentices, which encourages them to complete their apprenticeship. 2. Australian Apprenticeship Centres The government has earmarked approximately 300 sites across Australia to act as Australian Apprenticeship Centres. These centres are contracted by the government to provide a one-stop shop for anyone seeking an apprentice or a person who would like to be employed as an apprentice or trainee. Australian Apprenticeship Centres: provide assistance to employers, apprentices and training providers throughout the duration of an apprenticeship; market and promote apprenticeships in the local area; administer incentive payments to employers; establish effective relationships with Job Services Australia providers, group training organisations, registered training organisations (RTOs), schools and community organisations. You can locate the Australian Apprenticeship Centre closest to your business by typing in your postcode into the Australian Apprenticeship Centre search (a web link) or by telephoning The web address is: - ESS BIZTOOLS PTY LTD - ACN: Page 2
3 3. Incentive Programme There are a number of incentive programmes for employment of apprentices including: standard incentives; special and additional incentive where the apprentice is undertaking an apprenticeship leading to an occupation listed on the National Skills Needs' List; Australian school based apprenticeships; existing workers who become Australian apprenticeships; support for apprentices with disability; support for adult apprentice payments; and apprenticeships for indigenous Australians. 4. Employer Benefits The Australian Apprenticeship system is designed to be flexible so as to cater for all types of employers whilst, at the same time, providing nationally recognised quality training developed by industry for industry. The benefits for employers are that apprenticeships provide a range of benefits including: people trained to your business requirements; apprenticeships are available over a range of industries; the employer has a flexible choice of a registered training organisations (RTOs) who can provide on-the-job training for your apprentice; the employer can negotiate with the RTO relating to timing, location and nature of the training of the apprentice to suit your business needs; apprenticeships can be full time, part time or skill based depending on what suits your business; employees can attract incentives if they operate in the aged care, child care or enrolled nurses for: the commencement incentive the recommencement incentive; and the completion incentive employees can claim incentive payments for apprentices who commenced or recommenced prior to 23rd October 2012, as follows: eligible for a commencement or recommencement incentive (subject to meeting eligibility criteria) the completion incentive will only be paid where the apprentice successfully completes the Diploma or Advanced Diploma by 1st July (This clause does not apply to apprentices employed in the aged care, child care or enrolled nurses sector) 5. Employing An Apprentice The business makes the hiring decisions relative to the appointment of an apprentice. The training organisations can arrange for a business to share an apprentice with another business if you don t have enough work for an ongoing or full time position. You can also engage an apprentice part time while he or she is still at school through an Australian school based apprenticeship. You can employ an apprentice through an Australian Workplace Agreement or Certified Agreement (or state equivalent). The Australian Apprenticeship Centre in your area can supply you with additional information on hiring an apprentice. - ESS BIZTOOLS PTY LTD - ACN: Page 3
4 Group training organisations are alternatives for small and medium sized business which are unable to offer an apprentice a permanent position because they: cannot guarantee ongoing work; might not have the range of work available to ensure that the apprentice gains all the necessary job skills for that industry; and do not have the time to undertake all employment and training functions. 6. Group Training Organisation Group training is an arrangement where a group training company employs an apprentice and hires them to other businesses, normally small and medium sized businesses called host employers whilst the apprentice undertakes his/her training. In this case the group training company acts as the primary employer and the group training company: selects the apprentice manages the training takes responsibility for all paperwork connected with: wages allowances superannuation workers compensation work holiday pay other employment benefits rotates the apprentice from business to business, if necessary, to ensure that the business receives a broad range of experience. Group training is a cost effective and relatively simple way for a small or medium business to hire apprentices that might not otherwise be possible. Training organisations operate across Australia and some specialise in particular industries while others may cater for an entire region covering many industries. There is a National Registry of Group Training Organisations and further information is available from their website at 7. Standard Incentives Commencement Incentive $1,250 incentive for an employer who commences an apprentice at the Certificate II to Advanced Diploma level (subject to meeting the required eligibility criteria). $1,500 for an employer who commences a "new worker" apprentice in a Certificate III and IV - National Skills Needs' List (refer Addendum A). $1,500 for an employer who commences a "new worker" apprentice in Diploma and Advanced Diploma qualifications (aged care, child care or enrolled nurses sectors). $1,500 for an employer of an "existing worker" apprentice who is undertaking an apprenticeship that leads to an occupation on the National Skills Needs' List (refer Addendum A). Recommencement Incentive $750 for an employer of a "new worker" apprentice where qualification leads to National Skills Needs' List at the Certificate III or IV level. $750 for an employer of a "new worker" apprentice where the qualification is a Diploma/Advanced Diploma (aged care, child care or enrolled nurses sectors). $750 for an employer of an "existing worker" apprentice who is undertaking an apprenticeship that leads to an occupation on the National Skills Needs' List. - ESS BIZTOOLS PTY LTD - ACN: Page 4
5 Completion Incentive $2,500 incentive for employers of "new worker" apprentices who successfully complete a Certificate III or IV (leads to National Skills Needs' List) (refer Addendum A). $2,500 incentive for employers of "new worker" apprentices who successfully complete Diploma/Advanced Diploma (aged care, child care or enrolled nurses sectors). $2,500 incentive for an employer of an "existing worker" apprentice (including part time apprentices) who is undertaking an apprenticeship that leads to an occupation listed in the National Skills Needs' List. $3,000 for an employer of an "existing worker" apprentice (including part time apprentices) who is undertaking an apprenticeship that does not lead to an occupation on the National Skills Needs' List (refer Addendum A). $1,500 for an employer of a "part time" apprentice where the apprentice does not meet the part time eligibility criteria listed in the other completion incentive rates. $2,500 for employers of apprentices undertaking Diploma and Advanced Diploma which do not lead to aged care, child care or enrolled nurses sectors. A completion incentive will only be paid where the apprentice successfully completes prior to 1st July $2,500 for employers of "part time" apprentices where the apprentice successfully completes prior to 1st July Special Rural and Regional Skills Shortages Incentives If you commence employment of an apprentice and you are an eligible rural or regional Australian business, offering the apprenticeship in Certificate III or IV level qualification in selected nonmetropolitan areas, you will be able to apply for an incentive payment of $1, Mature Aged Worker Incentives An incentive of $750 is available for an employer who commences employment of an eligible apprentice in a Certificate II or higher level qualification, who is a person aged 45 years or more. This is payable in addition to the standard incentive payments (refer Item 7). A completion payment is paid to an employer for an apprentice who attracted the mature aged worker commencement incentive. Once the apprentice has completed Certificate II or a higher level qualification, the incentive payment is $750 and is paid in addition to the standard completion incentive payment (refer Item 7). 10. Australian School Based Apprenticeships The Australian School Based Apprenticeship is an apprenticeship which is undertaken part time whilst the apprentice is still at school. This arrangement combines paid employment as an apprentice or trainee, off the job vocational training and secondary school studies. Australian School Based Apprentices are employed under a federal or state award or agreement which sets out their wage and conditions of employment. Employers hiring Australian School Based Apprentices may be eligible to receive incentive payments. These incentive payments would be $750 for the commencement of an endorsed school based apprentice at the Certificate II to Certificate IV level or Diploma and Advanced Diploma qualification. - ESS BIZTOOLS PTY LTD - ACN: Page 5
6 $750 for the retention of the apprentice, once the apprentice has successfully completed his/her Senior School Certificate. 11. Declared Drought Areas An additional commencement incentive may be payable where an employer has an Exceptional Circumstances Certificate (declared drought area) and the employer engages an apprentice at Certificate II level, the incentive payment being $1,500. A completion incentive of $1,500, in addition to the standard completion incentive, will be paid to employers of eligible apprentices who have successfully completed a Certificate II qualification and the employer attracted a declared drought areas commencement incentive. 12. Assistance For Apprentices With Disabilities Employers who engage a disabled person as an apprentice can apply for disabled apprentice wage support, subject to the apprentice with the disability undertaking Certificate II or a higher level qualification. The disabled apprentice wage support is paid at a rate of $ per week for a full time apprentice and on a pro rata scale according to the hours worked for a part time apprentice. Training organisations can also apply for assistance for tutorial, mentor and interpreter services to support apprentices with disabilities who are experiencing difficulty with the off the job component of their apprenticeship because of their disability. To be eligible for the support payment of $ per week, the employer must be paying a wage of at least $ per week, or its part time equivalent. 13. Adult Apprentices A new system of payment for employers of adult apprentices (aged 25 years and over) commenced from 23rd October The qualification being undertaken is at the Certificate III or IV levels and leads to an occupation that is on the National Skills Needs' List. The payment to an employer of an adult apprentice who commenced or recommenced after 23rd October 2012 is a one off $4,000 payment due at the twelve month point of the Australian apprenticeship. 14. National Skills Needs' List Some of the incentive payments available to employers are only available for employment of apprentices who are undertaking courses in trades experiencing persistent skills shortages. The National Skills Needs' List is used to determine employer eligibility for grants under: the Programme for Support for Adult Apprentices (Item 13); and Special Rural and Regional Skills Shortage Incentive (Item 8). - ESS BIZTOOLS PTY LTD - ACN: Page 6
7 According to the Australian Apprenticeship Centre website, the last list of the trades included in the National Skills Needs' List was prepared in August 2012 and a copy of that list is enclosed as Addendum A. If you wish to consider the subsidies that are available to employ apprentices for the skills listed in the National Skills Needs' List, it is recommended that you have a discussion with the Australian Apprenticeship Centre office in your location before proceeding too far in the negotiations or planning, in case the list has changed. 15. Existing Workers Who Become Apprentices The government has a scheme to encourage existing workers to become apprentices. The government defines an existing worker as an employee who has a three month or more full time equivalent employment relationship with the employer. The working relationship can be built up through full time, part time or casual employment or engagement as a seasonal or contract worker and includes periods of approved leave. When a worker is not full time, four months non full time employment is equal to one month full time employment. What Employment Relationships Are Not Included Employment relationships that are not included within the definition of existing worker are: new employees undertaking Australian apprenticeships; Australian school based apprentices; employer relationships that exist whilst the employee was still at school including casual and part time jobs, participating in community development employment programme. 16. Professional Advice If you would like some further advice on the operation of apprenticeship incentives for employers, please contact the Australian Apprenticeship Centre in your location and also talk to your professional accountant. - ESS BIZTOOLS PTY LTD - ACN: Page 7
8 A Australian Apprenticeships - National Skills Needs' List ADDENDUM A The trades included on the National Skills Needs' List are: Airconditioning and Mechanical Services Plumber Airconditioning and Refrigeration Mechanic Aircraft Maintenance Engineer (Avionics) Aircraft Maintenance Engineer (Mechanical) Arborist Automotive Electrician Baker Boat Builder and Repairer Bricklayer Butcher or Smallgoods Maker Cabinetmaker Carpenter Carpenter and Joiner Cook Diesel Motor Mechanic Drainer Electrical Linesworker Electrician (General) Electrician (special class) Electronic Equipment Trades Worker Fibrous Plasterer Fitter (General) Fitter and Turner Fitter-Welder Floor Finisher Furniture Finisher Gasfitter Glazier Hairdresser Joiner Landscape Gardener Lift Mechanic Locksmith Metal Fabricator Metal Machinist (First Class) Motor Mechanic (General) Motorcycle Mechanic Optical Mechanic Painting Trades Worker Panelbeater Pastrycook Picture Framer Plumber (General) Pressure Welder Print Finisher Printing Machinist Roof Plumber Roof Tiler Screen Printer - ESS BIZTOOLS PTY LTD - ACN: Page 8
9 Shearer Sheetmetal Trades Worker Signwriter Small Engine Mechanic Solid Plasterer Stonemason Telecommunications Linesworker Telecommunications Technician Toolmaker Upholsterer Vehicle Body Builder Vehicle Painter Vehicle Trimmer Wall and Floor Tiler Welder (First Class) Wood Machinist Please note that this list is current as at August 2012 and may be subject to change. Employers and Australian Apprentices should contact their Australian Apprenticeships Centre for advice. - ESS BIZTOOLS PTY LTD - ACN: Page 9
10 ADDENDUM B B Building And Construction Industries - National Skills Needs' List The following trades are eligible for Apprentice Kickstart Initiative in the building and construction industries: Air-conditioning and Mechanical Services Plumber Bricklayer Cabinetmaker Carpenter Carpenter and Joiner Drainer Electrician (General) Fibrous Plasterer Floor Finisher Gasfitter Glazier Joiner Landscape Gardener Painting Trades Worker Plumber (General) Roof Plumber Roof Tiler Sheetmetal Trades Worker Signwriter Solid Plasterer Stonemason Wall and Floor Tiler Welder (First Class) Please note that this list is current as at April 2013 and may be subject to change. Employers and Australian Apprentices should contact their Australian Apprenticeships Centre for advice. - ESS BIZTOOLS PTY LTD - ACN: Page 10
11 ADDENDUM C C Engineering Industries - National Skills Needs' List The following trades are eligible for Apprentice Kickstart Initiative in the engineering industries: Aircraft Maintenance Engineer (Avionics) Aircraft Maintenance Engineer (Mechanical) Fitter (General) Fitter and Turner Fitter Welder Metal Fabricator Metal Machinist (First Class) Pressure Welder Toolmaker Please note that this list is current as at April 2013 and may be subject to change. Employers and Australian Apprentices should contact their Australian Apprenticeships Centre for advice. - ESS BIZTOOLS PTY LTD - ACN: Page 11
12 AN IMPORTANT MESSAGE The forms and commentaries contained in this paper are provided as a guide only and should not form the sole basis for any advice in relation to the particular situation of any person without first obtaining proper professional advice. This paper is provided on the understanding that ESS BIZTOOLS PTY LTD (ACN: ) will not be responsible as a result of any use made by users hereof of the forms or commentaries of this paper without first obtaining specific professional advice. Neither shall ESS BIZTOOLS PTY LTD be responsible for any errors or omissions contained in these papers. ESS BIZTOOLS PTY LTD expressly disclaims liability whether under contract or negligence and whether to a direct purchaser of these papers or to any other person who may borrow or use them in respect of any loss or damage flowing therefrom whether direct or consequential. In particular and without limiting the extent of this disclaimer ESS BIZTOOLS PTY LTD accepts no liability if any form or commentary contained herein, whether used in its original form or altered in some way by the user, proves not to be valid or not to attain the end result desired by the user. This exclusion shall extend both to the user and to any client of the user who may suffer loss as a result of the use of these papers and it shall apply even though ESS BIZTOOLS PTY LTD may have been negligent in the publication or preparation of these papers. The user acknowledges that it has not made known to ESS BIZTOOLS PTY LTD any particular purpose for which these papers are required and that it has not relied on ESS BIZTOOLS PTY LTD's skill or judgement to provide a paper suitable for any such purpose. INTELLECTUAL PROPERTY NOTICE The authority to use all copyright, trade marks and other intellectual property rights comprised in this paper is held exclusively by ESS BIZTOOLS PTY LTD (ACN: ). Neither these rights nor any part of this paper may be used, sold, transferred, licensed, copied or reproduced in whole or in part in any manner or form whatsoever without the prior written consent of ESS BIZTOOLS PTY LTD (ACN: ). - ESS BIZTOOLS PTY LTD - ACN: Page 12
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