$1.2bn subsidy a boon for trainees

HALF the salary of new apprentices and trainees in any industry will be paid for by the federal government for one year under a wage subsidy scheme to drive jobs growth.

Flagged as the single biggest investment in a trainee commencement scheme, the Morrison government has set aside $1.2 billion for Australian businesses to employ 100,000 new workers as part of its COVID-19 economic recovery plan.

Starting on Monday, businesses who take on a new apprentice or trainee will be eligible for a 50 per cent wage subsidy, regardless of geographic location, occupation, industry or business size.

The move has been welcomed by the construction and hospitality sectors, where thousands of laid off trainee staff now have an opportunity to resume paid work.

Prime Minister Scott Morrison said apprenticeships and traineeships were an important pathway to get young people into jobs while also ensuring a “skills pipeline” to meet the future needs of employers. “This new wage subsidy gives businesses certainty to hire and provides a career path to aspiring, young tradies,” he said.

The subsidy will be available until the 100,000 cap is reached. Employers will be eligible for 50 per cent of the wages for a new or recommencing apprentice or trainee up to September 30, 2021, up to $7000 per quarter.

Employment, Skills, Small and Family Business Minister Michaelia Cash said the measure built on the existing $2.8 billion Supporting Apprentices and Trainees wage subsidy.

“This wage subsidy is all about supercharging our skillsled recovery and giving Australians the opportunity to be part of rebuilding out economy,” she said.