With the Federal Election result now finalised the new Apprenticeship incentives promised in the recent 2019 Federal Budget will be commencing as of July 1st 2019.
The most exciting of these is the Additional Identified Skills Shortage (AISS) Payment which will be available to eligible apprentices and their employers in occupations experiencing national skills shortage. The AISS payment targets new workers to grow the number of apprentices in the system and encourage more people to take up an Australian Apprenticeship, particularly school leavers and young people.
Eligible apprentices will receive $1,000 at the 12 month point from commencing their apprenticeship and an additional $1,000 after completing their apprenticeship. Eligible employers will also receive $2,000 at the 12 month point from the commencement of the apprenticeship and an additional $2,000 at completion of the apprenticeship. These payments are additional to any payments the apprentice or employer may be eligible for under existing Australian Government programs.
For more information check out our AISS Fact Sheet
Expansion of the Support for Adult Australian Apprentice (SAAA) Incentive
From 1 July 2019, eligibility for the Support for Adult Australian Apprentices incentive will be extended to employers who take on eligible Australian Apprentices aged 21 to 24 years (previously only 25 years and over) studying a Certificate III or IV qualification in areas of skills needs. Extending eligibility will close this gap and provide a stronger incentive for employers to engage more adult apprentices in areas of skills needs.
For employers to receive the expanded Support for Adult Australian Apprentices incentive the eligible Australian Apprentice will be:
- aged 21 years or older
- undertaking a full-time or part-time Certificate III or IV qualification that leads to an occupation listed on the National Skills Needs List at the date of commencement or recommencement; and
- be in receipt of an ‘actual wage’ paid by the employer at the date of commencement or recommencement which is equal to or greater than the National Minimum Wage (as defined and set by the Fair Work Commissioner)
- The employer must also meet all other eligibility requirements under the Australian Apprenticeships Incentives Program.
Eligible employers will be able to claim the incentive from the 12-month point from the date of commencement or recommencement of the apprentice.
For further information you can download our SAAA Fact Sheet
Trade Support Loans (TSL)
From 1 July 2019, the Trade Support Loans lifetime limits, yearly rates and instalment rates are as follows:
New minimum repayment threshold:
Payments made to an apprentice through the Trade Support Loans program are repayable through the taxation system when the minimum income threshold outlined in the Higher Education Support Act 2003 has been reached. This minimum Higher Education Loan Program (HELP) repayment threshold will change from 1 July 2019. Currently, TSL repayments start when an apprentice earns more than $51,957 a year. After 1 July 2019, apprentices will need to start repayments when they earn more than $45,881 a year.
For further information check out our TSL Fact Sheet