Last month the Federal Government announced sweeping changes to the Australian Apprenticeships System, in particular Commonwealth Apprenticeship Incentives.
These changes affect all electrical contractors who employ apprentices or trainees.
We have identified the relevant information electrical contractors need to be aware of if they currently employ or are thinking of employing an apprentice.
Reintroduction of the Kickstart initiative
The most valuable change and benefit for members is the implementation of the Kickstart initiative.
Small to medium employers (fewer than 200 employees) who employ a new apprentice between December 2012 and February 2013 can receive an additional $3,350 paid in two instalments of:
- $850 - paid at the six month point of the Australian Apprenticeship,
- $2,500 - paid at the 12 month point of the Australian Apprenticeship.
When previously introduced, the Kickstart incentive applied to apprentices aged between 16 and 19 years of age. To date there has been no indication that an ‘age bracket’ applies in this instance.
This initiative applies to apprentices undertaking a Certificate III or IV level qualification in electrical, plumbing, carpentry and other construction trades listed on the National Skills Needs List.
Support for Adult Australian Apprentice (SAAA)
New Adult Apprentices (over 25yrs) commenced on or after 23rd October 2012:
- Employers of electrical apprentices aged 25yrs or over at the time of commencement after 23rd October 2012 and pay above the national minimum wage, will receive a one of lump sum payment of $4,000 at 12 months.
- For current employers who receive Support for Adult Apprentices (SAAA), they will continue to receive the 1st year payments of $150 per week paid in arrears until the end of the first year of the apprenticeship OR 23rd October 2013, whichever arrives first.
- However, if you have an apprentice in their 2nd year and were previously receiving the Support for Adult Australian Apprentice (SAAA) incentive, this will no longer apply from 23rd October 2012. Employers that have outstanding SAAA incentives yet to be claimed for a period up to 23rd October 2012, will still receive their entitled incentive as the SAAA incentive is paid in arrears. Once this has been processed by your preferred Australian Apprenticeship Centre on behalf of the Federal Government, these incentive payments for your 2nd year apprentice will cease. Master Electricians and ECA members can contact the ApprenticeConnect team on 1300 663 793 for further information. Alternatively please visit the Australian Apprenticeships website at www.australianapprenticeships.gov.au.