Summary of the Australian Government Incentives Program From  1st July 2007

Australian Apprenticeships

The objective of the Australian Apprenticeships Incentives Programme is to develop a more skilled Australian workforce that delivers long-term benefits for our nation and our international competitiveness. This is achieved by encouraging employers to open up genuine opportunities for skills-based training of their employees, through provision by the Australian Government of financial incentives to employers who employ and train an Australian Apprentice (apprentice or trainee).

Waiting periods

There is a three month waiting period before an employer can apply for an Australian Government Commencement Incentive for an Australian Apprentice. The Apprenticeship/Traineeship Training Contract must be formally approved. The Australian Apprentice must still be employed by the same employer and must have commenced training in accordance with the approved Training Program. The employer should submit a claim to the Australian Apprenticeships Centre at the end of the three month waiting period, and within the required time limit. Further information on waiting periods and time limits can be obtained from your Australian Apprenticeships Centre.

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Australian Government Incentives

The following summarises the Australian Government Incentives regime for all

Australian Apprentices (apprentices and trainees). Payment of incentives will be subject to employers and their Australian Apprentices satisfying eligibility criteria as set out in the Australian Government  Incentives Programme Guidelines. Australian Government Incentives amounts are inclusive of GST. Contact your Australian Apprenticeships Centre for further information on Australian Government Incentives.

Standard Commencement

$1,250 incentive for an employer who commences an Australian Apprentice in Certificate II training; or $1,500 incentive for an employer who commences an Australian Apprentice in Certificate III or IV training.

Innovation – Special Commencement

$1,100 special incentive for an employer who employs an Australian Apprentice in an eligible innovation training package qualification at the Certificate III or IV level.

Australian School-based Apprenticeships – Additional Commencement

$750.00 additional incentive for an employer who employs an Australian Apprentice in an endorsed School-based Apprenticeship at Certificate II to IV level.

Rural and Regional Skill Shortages – Special Commencement

$1,000 special incentive for Rural and Regional Australian Apprenticeships where the Australian Apprentice commences Certificate III or IV training in an occupation identified as a skill shortage in a non metropolitan area.

Declared Drought Areas – Additional Commencement

$1,500 additional incentive for employers of eligible Certificate II Australian Apprentices who are employed by an employer who has a current Exceptional Circumstances Drought Area certificate.

Mature Aged Worker – Special Commencement

$750 special incentive for an employer who commences an eligible Certificate II to IV level Australian Apprentice who is a disadvantaged person aged 45 years or more. Contact your Australian Apprenticeships Centre for further information.

Standard Recommencement

$750 incentive for employers recommencing out-of-trade Certificate III or IV Australian Apprentices.

Australian School-based Apprenticeship Retention

$750 for an employer who continues to employ a Certificate II to IV level Australian School-based  Apprentice after the student has completed Year 12.

Standard Completion

$2,500 incentive for employers of Australian Apprentices who successfully complete Certificate III or IV. The Australian Apprentice must have been employed as an Australian Apprentice by that employer for at least 3 calendar months before completion.

Declared Drought Areas – Special Completion

$1,500 special incentive for employers on the successful completion of eligible Certificate II Australian Apprentices who attracted a Declared Drought Areas additional commencement incentive.

Mature Aged Worker – Special Completion

$750 special incentive for an employer on the successful completion of a Certificate II to IV level Australian Apprentice who attracted a Mature Aged Worker special commencement incentive.

Assistance for an Australian Apprentices with a Disability

The Disabled Australian Apprentice Wage Support Programme provides additional assistance to eligible employers who recruit a Certificate II to IV level Australian Apprentice with a disability. Assistance may include a wage support payment, tutorial, interpreter and mentor services. Assistance may also be available for leasing or purchasing essential equipment or modifying the workplace to accommodate a New Apprentice with a disability. More information is available from your Australian Apprenticeships Centre.

Youth Allowance, Austudy & ABSTUDY

Australian Apprentices may be eligible to receive extra support from the government for young people under the age of 25yrs. The amount will be advised upon application and is subject to the application of parental and personal income tests.

Living Away From Home Allowance

Australian Apprentices may be eligible for up to twelve months of LAFHA at the first year rate of (LAFHA) $77.17 per week and a further twelve months assistance at the second year rate of $38.59 and third year rate of $25.00 if the Certificate II to IV level Australian Apprentice had to move away from the parental/guardian home to commence or remain in a Australian Apprenticeship or is homeless. Your Australian Apprenticeships Centre can provide more information on LAFHA and the appropriate application form.

Skills for the Future

As a new incentive by the Federal Government, a further set of incentives have been added as from 1st July 2007.

Support for Mid Career Apprentices (30+ years)

Additional incentives may be available for apprentices in skill shortage areas over the age of 30years. An additional $150 for 1st Year and $100 for 2nd Year apprentices may be paid to either the apprentice or employer (depending on the employment conditions).

Incentives for Higher Technical Skills (Diploma & Advanced Diploma)

Incentives for aquiring higher technical skills for targetted Diploma and Advanced Diploma qualifications, particularly in the engineering fields.

Commonwealth Trade Learning Scholarships

Australian Apprentices undertaking a trade qualification leading to an occupation in an area of skill shortage may be eligible for two instalments of $500 over 2 years.

Tools for Your Trade

Australian Apprentices who start an eligible trade occupation experiencing a skill shortage, will receive a tool kit voucher after completing 3 months of their Australian Apprenticeship of up to $800.

Apprentice Wage Top Up's

Australian Apprentices in skill shortage areas under the age of 30yrs will receive four instalments of $500 as a supplement. This will occur every 6mths over the first two years of their Australian Apprenticeship.

Victorian State Government Incentives for Employers

The Victorian State Government also provide addtional incentives for employers.

These include opportunities for subsidised training, workcover exemptions.

Apprentice Trade Bonus

This bonus is for Victorian apprentices only and is paid in two instalments of $250 over 12 months.

Completion Bonus

This is a unique bonus that benifits employers who sign up three (3) or more "new" trainees or apprentices, under the age of 25yrs. $1,300 for each trainee and up to $3,500 for each apprentice may be available upon completion.

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For a full outline of each of these incentives, go the the Links / Downloads section.