Discounted charge out rate for Apprentices extended until March 2021
During the COVID-19 pandemic, we implemented a discounted hosting rate to ensure more apprentices can remain in hosted employment.
With the Federal Government's reduction of the JobKeeper weekly rate from the 1st January 2021, the MTA has been able to maintain a discounted hosting rate, however with the following changes effective 2nd January 2021 until the 12th March 2021:
- First-year apprentice charge out rates will increase from $310.08 per week per apprentice to $385.70 (56% below normal rate - $874.00*);
- Second-year apprentice charge out rate will increase from $370.88 per week per apprentice to $482.60 (55% below normal rate $1065.90*);
- Third-year apprentice charge our rate will increase from $370.88 per week per apprentice to $596.60 (47% below normal rate $1119.10*);
- Fourth-year apprentice charge out rate will increase from $490.20 per week per apprentice to $699.20 (41% below normal rate $1191.30*).
*normal weekly comparison rates above are based on a Light Vehicle Mechanical Apprentice working a 38 hour week. Other trade rates will vary.
The above discounted rates represent a 100% passing on of the current JobKeeper amount.
Discounted rates continue to apply for normal time only and standard overtime rates apply.
It should also be noted that the above charge out rates apply only to apprentices that have been eligible for the JobKeeper subsidy (apprentices who were in employment with the MTA on the 1st July 2020). Apprentices who were employed by the MTA after the 1st of July 2020 are not eligible for JobKeeper, however, they may be receiving another form of government subsidy (check with your Field Officer if you are unsure if your MTA apprentice is eligible).
If you have any questions concerning the new charge out rates, please contact General Manager Apprentice Employment Services, Jason Polgreen, on 0427 396 007 or by email: email@example.com
Government Initiative FAQs
What are the current COVID-19 government incentives for the ongoing employment of apprentices?
- The JobKeeper Payment – A fortnightly payment of $1,500 to keep employees engaged in a business of any size. For businesses with an annual turnover of less than $1 billion, evidence must be provided of a drop in turnover of 30% or more. For businesses over $1 billion, turnover drop must be more than 50%.
- The Supporting Apprentices and Trainees Incentive – A 50% apprentice wage subsidy for small businesses of less than 20 employees paid in 3 monthly installments of up to $7,000 (depending on apprentice year level)
I am a small business with less than 20 staff (19 staff not including MTA apprentices), what funding can I access?
If you have an apprentice that was active on the 1st of March 2020, you are eligible for both the Supporting Apprentices and Trainees Incentive and the JobKeeper Payment. You are not able to access both incentives at the same time for the same apprentice.
If you meet the criteria for the Supporting Apprentices and Trainees Incentive we will automatically apply for the first 50% wage subsidy payment (1st January – 31st March) on your behalf and pass the full amount on to you. You will then need to notify us if you would like to continue to access the Supporting Apprentices and Trainees Incentive or the Jobseeker Payment that commences on the 30th March.
Do not include your MTA apprentices when applying for assistance for other employees in your business.
Will the MTA keep any of the incentives for my MTA apprentices?
No, the MTA will pass on the COVID-19 incentives to eligible host employers and apprentices.
I am a business with 20 or more staff, what funding can I access?
You may be eligible for the JobKeeper Payment for your own staff if you are able to demonstrate a 30% drop in turnover. Your MTA Group Training apprentices may also be eligible if the MTA is also able to meet the eligibility requirements. We are working on this and will provide you with an update soon. Do not include your MTA apprentices when applying for assistance for other employees in your business.
If the MTA is able to access the Jobseeker Payment for your MTA apprentices, we will provide further information on how this will assist your business.
I took on an MTA apprentice after the 1st March 2020, am I eligible for the Supporting Apprentices and Trainees or JobKeeper Payment incentives?
No, you must have had an active host agreement on the 1st March 2020.
When will I know more about the $1,500 JobKeeper Payment?
We are working with government to gain access to the funds on behalf of our apprentices. We will then notify you of what this will look like if successful.
Over what period is the JobKeeper Payment incentive active?
The JobKeeper Payment is available for 6 months from the 30th March 2020.
How will the MTA pay me the Support for Apprentices and Trainees Incentive?
The MTA will deposit the amount into your nominated bank account.
Who can I talk to if I want to know more?
You can contact General Manager Apprentice Employment Services, Jason Polgreen, on 0427 396 007 or by clicking here.
The Federal Government has already announced a wide range of supports for apprentices in their stimulus packages to date.
However, some businesses will not be able to retain their apprentices because they are required to shut down, or are slowing down. Accordingly, the State Government has made some changes to allow apprentices to be suspended for a longer period than normal during this crisis.
If you are winding down your business or considering temporarily closing, there are ways to keep your apprentice or trainee engaged with their learning.
In some circumstances, this will mean you can access these valuable skills when the time is right or help support an apprentice to continue their career.
Options to consider:
- Off-job training: This could mean online training and your apprentice should speak to their training provider. As an employer, you will need to continue to pay wages for time your apprentice spends in attendance at training.
- Flexible rostering: So that the contracted hours can continue to be met, subject to award conditions.
- Suspend the training contract: You can now put on hold the training contract for an apprentice or trainee with suspensions up to and including Friday 1 January 2021, providing time for your business to be ready again to resume.
- Discuss with your apprentice possible leave arrangements
- Support industry transition: Your apprentice or trainee may benefit from experience within another business that is in a position to offer them on-the-job experience, until you are able to provide this again. In this case, you would continue to pay wages and entitlements.