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New Apprentice & Trainee Wage Subsidy Announced

29 September 2021

The Federal Government has announced the Completing Apprenticeship Commencement (CAC) wage subsidy, an extension to the Boosting Apprenticeship Commencements (BAC) scheme.

Last year, the BAC subsidy was implemented to encourage employers Australia-wide to take on new apprentices and trainees. Under the scheme, businesses who employ an apprentice or trainee between the timeframe of 5 October 2020 and 31 March 2022 are eligible to a subsidy of 50 per cent of the commencing or recommencing apprentice or trainee’s gross wage paid for a 12-month period from the date of commencement, to a maximum of $7,000 per quarter.

Key points on CAC:

• Eligible employers of a BAC supported apprentice or trainee will transition onto the time-limited CAC wage subsidy for the second and third year of their apprenticeship.
• Under the CAC, eligible employers will receive a wage subsidy of ten per cent of wages paid to an eligible apprentice or trainee in the second year of their apprenticeship, to a maximum of $1,500 per quarter per apprentice.
• Eligible employers will also receive a wage subsidy of five per cent of wages paid to an eligible apprentice or trainee in the third year of their apprenticeship, to a maximum of $750 per quarter per apprentice.

If you are contemplating whether now is the right time to take on your next apprentice or trainee, please get in touch with us for more information.