New financial assistance for Apprentices and Hosts

Public news

The Federal Government’s changes to Apprentice and Host employer incentive payments took effect on 1 July.

Support for Adult Australian Apprentices incentive

The Support for Adult Australian Apprentices (SAAA) incentive is a payment of $4,000 to an eligible employer of an adult Australian Apprentice once the apprentice has successfully completed 12 months of training.

The minimum age for eligibility for this incentive has been reduced from 25 to 21 years of age.

Australian Apprentices are eligible for this incentive if undertaking a full-time or part-time Certificate III in one of the following trades:

  • Motor mechanics (General)
  • Motorcycle mechanic
  • Panel beater
  • Small engine mechanic
  • Vehicle body builder
  • Vehicle painter
  • Vehicle trimmer
  • Automotive electrician
  • Boat builder and repairer

Eligible Apprentices must also be are 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.

To qualify as an ‘adult’ under then new rules, an Apprentice must be aged 21 years or older if the apprentice commenced on or after 1 July 2019.

Australian Apprentice Wage Subsidy Trial

The Australian Apprentice Wage Subsidy trial which supports employers in regional areas facing skills shortages by subsidising 75% of the apprentice award wage in the first year, 50% in the second and 25% in the third. The number of eligible places has increased from 800 to 1600.

Australian Apprentices are eligible for this incentive if undertaking a full-time or part-time Certificate III in one of the following trades:

  • Motor mechanics (General)
  • Motorcycle mechanic
  • Panel beater
  • Small engine mechanic
  • Vehicle body builder
  • Vehicle painter
  • Vehicle trimmer
  • Automotive electrician
  • Boat builder and repairer

Employers must not have previously employed an Australian Apprentice or have not employed an Australian Apprentice in the three-year period prior to 1 January 2019, and live in one of the postcodes listed by clicking here.

Identified Skills Shortage Payment

An identified skills shortage payment provides eligible apprentices with $1000 after 12 months and $1000 on completion, while employers will receive $2000 after 12 months and $2,000 on completion. Currently this payment only applies to Vehicle painters.

To be eligible, the apprentice must be new to the employer, commencing a Certificate III qualification on or after 1 July 2019. Existing workers and their employers are not eligible for the AISS payment.

For further assistance with this, please contact our Automotive Apprentice Mentors, Melissa Clark and Tania Reval by clicking here.