Initial Guidelines (July 1, 2022 – June 30, 2024)
For apprenticeships in priority occupations experiencing a national skills shortage:
- Full-time apprentices: Eligible for $5,000 in government payments over 2 years.
- Employers: Eligible for up to $15,000 over 3 years, based on the apprentice’s wage.
This initial system was designed to run for two years, ending on June 30, 2024, before transitioning into Phase Two.
Phase Two (Post June 30, 2024)
In Phase Two, the payments were initially planned to be reduced to:
- Apprentices: $3,000 over the relevant timeframe.
- Employers: $4,000 over the relevant timeframe.
2024–25 Federal Budget Announcement
The Federal Budget for 2024–25 announced an increase in Phase Two payments. For apprentices employed after July 1, 2024, the revised incentives are:
- Full-time apprentices: $5,000.
- Employers: $5,000.
Opportunities
There is a significant opportunity for employers to hire a new apprentice before the original scheme ends on June 30, 2024. By doing so, employers could benefit from the higher initial incentives:
• First 2 years: 10% of an apprentice’s gross wage, up to $1,500 per quarter.
• Third year: 5% of gross wages, up to $750 per quarter.
This provides a compelling financial benefit for employers considering taking on new apprentices before the end of the original program.