Government extends apprentice subsidy

Previously, wages for apprentices that were engaged since 1 January 2020 were to be subsidised by 50%, capped at $7,000 per quarter per apprentice.

The extension will provide employers with a subsidy of 50% of wages for the apprentices or trainees engaged between 5 October 2020 up to 31 September 2021, again capped at $7,000 per quarter per apprentice.

The subsidy will apply for 12 months from the commencement date of the apprentice or trainee.

All claims for any claim period must be lodged by 31 December 2022.

If the employee is receiving any other Australian government wage, e.g. supporting apprentices and trainees or JobKeeper, the employer will be ineligible to claim the subsidy for that employee.

What if you have an existing apprentice?

An employer can only apply for the BAC wage subsidy for an existing apprentice or trainee if the existing apprentice/trainee:

• commences in a trades-based Australian apprenticeship; or
• transfers from a casual employment arrangement to a part-time or full-time Australian apprenticeship; or
• transfers from a part-time employment arrangement to a full-time Australian apprenticeship.

A limit of 30 existing workers applies to employers where the Australian apprentice’s employment arrangement changes from casual to part-time or full-time, or changes from part-time to full-time. No limit applies however where the existing worker is undertaking a trades-based Australian apprenticeship.

The above limits will apply for worker commencements from 28 October 2020.

To register for the BAC, please get in contact with your Australian Apprenticeship Support Network (AASN).  Details of the AASN can be found here. Your AASN will provide you with the required forms to be able to lodge a claim and your Mazars advisor can provide further assistance with these forms.

Claims for the next quarter (Round 4) of the Supporting Apprentices and Trainees Subsidy (SATS) opened on January 11, 2021.

Similar to previous claims, the wage subsidy will be 50% of the apprentice or trainee’s wage up to $21,000 capped at $7,000 per quarter per employee.

This applies to wages up to 31 December 2020 and all claims must be submitted by 30 June 2021.

If the employee is receiving any other Australian government wage, e.g. JobKeeper, the employer will be ineligible to claim the subsidy for that employee.

For details and assistance with lodging your SATS claim, please contact your AASN here.

Mazars advisors have the knowledge and expertise to assist you with your BAC and SATS claims. If you require assistance completing the claim forms or need further support to understand which subsidies you are eligible for, contact your usual Mazars advisor or alternatively one our specialists on phone number or form below:

Author: Michael Glasper

Published: 17/3/2021

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