The Federal Government plans to invest an additional $1.2 billion to support Australian business to employ 100,000 new apprentices or trainees as part of its COVID-19 economic recovery plan.
From 5 October 2020, businesses who take on a new Australian apprentice will be eligible for a 50 per cent wage subsidy, regardless of geographic location, occupation, industry or business size.
Prime Minister Scott Morrison said apprenticeships are an important pathway to get young people into jobs and to ensure there is a skills pipeline to meet the future needs of employers.
“During this pandemic the Federal Government has been focused on supporting and creating jobs as well as identifying the skills we need in the economic rebuild,” Mr Morrison said.
“Already 760,000 jobs that were either lost or reduced to zero hours as the COVID crisis hit, have come back into our economy. We want to continue to recover what has been lost and get young people into work.”
“Whether it’s the manufacturing, housing and construction, arts or mining sectors – this new wage subsidy gives businesses certainty to hire and provides a career path to aspiring, young tradies.”
The subsidy will be available to employers of any size or industry, Australia-wide who engage an Australian apprentice or trainee from 5 October 2020 until the 100,000 cap is reached.
Under the new measure, employers will be eligible for 50 per cent of the wages for a new or recommencing apprentice or trainee for the period up to 30 September 2021, up to $7,000 per quarter.
Minister for Employment, Skills, Small and Family Business, Senator the Hon Michaelia Cash said the measure builds on the existing $2.8 billion Supporting Apprentices and Trainees wage subsidy that is helping employers to retain their apprentices and trainees.
“The Australian Government has already invested significantly to ensure that apprentices are retained where possible and supported to re-engage if they lose their job,” Minister Cash said.
Assistant Minister for Vocational Education, Training and Apprenticeships, the Hon Steve Irons MP, added that the new measures will build on the already significant investment to support apprentices and trainees.
“Through the existing Supporting Apprentices and Trainees measure, as many as 90,000 businesses employing around 180,000 apprentices throughout Australia will continue to be supported,” Assistant Minister Irons said.
Chief Executive Officer of the Minerals Council of Australia (MCA), Tania Constable, said the wage subsidy will go a long way in helping companies employ young Australians seeking a career in apprenticeships and trades providing a pipeline of qualified skilled staff well into the future.
“This announcement is welcome news for Australian mining regions, where the minerals industry is supporting jobs and regional economies,” she said.
“Regional Australian communities need more support as the nation rebounds from the COVID-19 pandemic which has hit young Australians and their job prospects hard.”
“In particular, the sector has sustained its backing for apprenticeships. The resources sector currently employs 8,836 apprentices and trainees,” Ms Constable said.
Recent figures from the National Centre for Vocational Education Research highlight that while apprenticeships across all industries were down 11 per cent, the mining industry only experienced a 1.41 per cent decrease.
Ms Constable said the broader Australian minerals industry aims to create more than 5,000 apprenticeships working in partnership with the Australian Government through the Mining Skills Organisation Pilot.
“The success of Australia’s resources sector – including its ability to meet strong export demand – depends on a highly-skilled workforce which is qualified and experienced in a range of scientific and environmental fields, professional occupations and trades,” she commented.