Government expands apprentice wage subsidy scheme

The Federal Government has announced further financial support for businesses and individuals struggling as a result of the coronavirus pandemic, to the tune of $2 billion.

The package revealed today, titled JobTrainer, has been designed to not just help keep people in jobs but also to help individuals reskill or upskill into sectors with job opportunities.

Out of the $2 billion, $1.5 billion will go towards expanding the wage incentive to help keep apprentices in work, which builds on the initial $1.3 billion package announced back in March.

Under the measures announced in March, when the pandemic firmed its grip on the country, eligible small businesses (which employs fewer than 20 people) will be able to apply for a wage subsidy of 50 per cent of their apprentices’ wage for up to nine months from January 1 to September 30, 2020.

The new JobTrainer package announced today effectively extends the measure out to March 21, 2021, and has also extended eligibility to include medium sized business (which employs 199 people or fewer).

The initiative will cover 50 per cent of the wages paid to apprentices and trainees, up to $7000 per quarter.

The Government said around 180,000 apprentices and 90,000 small and medium businesses that employ them will now be supported.

In addition, $500 million will go towards offering school leavers and job seekers access to courses to develop new skills in growth sectors.

The program will total $1 billion with matched contributions from state and territory governments, and will offer courses for free or for a low cost in areas of identified need.

Prime Minister Scott Morrison said the JobTrainer package was focused on getting people into jobs.

“JobTrainer will ensure more Australians have the chance to reskill or upskill to fill the jobs on the other side of this crisis,” the Prime Minister said.

“COVID-19 is unprecedented but I want Australians to be ready for the sorts of jobs that will come as we build back and recover.

“The jobs and skills we’ll need as we come out of the crisis are not likely to be the same as those that were lost.”

Minister for Employment, Michaelia Cash, said the National Skills Commission would play a critical role in identifying current and future skills needed in a challenging and changing labour market.

“We will work with States and Territories to develop a list of qualifications and skill sets that will provide job seekers with the skills that are in demand by employers and are critical to the economic recovery.”