Trainee and apprentice support is a lifeline to employers
JobKeeper will wrap up at the end of March, however the Morrison government is now in the process of extending a lifeline to employers who hire new trainees and apprentices.
The lifeline is an uncapped wage subsidy for trainees that will be extended for another year to the hardest hit industries including the aviation and tourism sectors.
So far, many of the traineeships and apprenticeships under the Boosting Apprenticeship Commencements scheme have come from have the construction services sector, food and beverages, administration, building construction and repair and maintenance skills.
It is likely these industries will continue to dominate subsidy requirements.
The Boosting Apprenticeship Commencements scheme was initially capped at 100,000 places, but will now receive billions of dollars in targeted assistance.
It is expected an extra 70,000 new apprentice and trainee places will be available to employers who sign up new apprentices and trainees before 30 September. The program will run until October 2022.
According to Prime Minister Scott Morrison, “training and skills were at the core of the government’s response to the economic challenges faced by the COVID-19 recession”.
“Creating jobs, generating economic opportunities and boosting the skills of workers right across Australia are at the heart of our national economic recovery plan, as we build back from the COVID-19 recession,” Mr Morrison said
“Last week’s national accounts showed the comeback of the Australian economy is under way. However, many businesses still need support and it’s important our apprentices and trainees get opportunities to boost their skills and stay employed.
“With 100,000 new apprenticeship positions already snapped up, it highlights the confidence businesses have in the future of the Australian economy.”
Michaelia Cash, Minister for Employment, Skills, Small and Family Business said the program was crucial for creating new jobs, particularly as Treasury and the Reserve Bank both speculate that there might be a short term rise in unemployment once JobKeeper comes to an end.
“Growing our skills pipeline is an incredibly important part of helping our economic recovery,” Senator Cash said.
“The Boosting Apprenticeships Commencement program has to date assisted almost 40,000 businesses to take on a new Australian apprentice or trainee.
“This initiative has supported the creation of more than 8000 bricklayers, 6000 electricians, and almost 11,000 people in retail and hospitality work.
“By expanding this wage subsidy for another 12 months, we will be helping businesses to create even more jobs, further supporting our national economic recovery plan for Australia.”
The initial apprenticeship package was part of the $4BN JobTrainer COVID-19 response, designed to ensure Australia had a post-pandemic skilled workforce. It also encouraged
struggling businesses to retain apprentices and trainees, to avoid deepening the unemployment crisis for younger Australians.
9th March 2021
