Small business employers of apprentices to get stimulus package
Small businesses who employ less than 20 people will receive up to $7,000 per quarter for three quarters to keep their apprentices
This payment is a stimulus payment as a result of an expected national economic downturn in the first half of 2020.
It is expected that these payments will be received via the Australian Apprentices Incentives Program. This program currently services employers by providing cash payments when apprentices meet certain targets.
The program will be in place from 1 January 2020 to 30 September 2020, and claims may be made from 31 March 2020.
Small businesses who employ less than 20 people, will receive up to $7,000 per quarter for three quarters to keep their apprentices. This payment is a stimulus payment as a result of an expected national economic downturn in the first half of 2020.
Eligible small business employers, with less than 20 employees on their payroll, can apply for a wage subsidy of 50 per cent of their apprentice’s wage, up to $7,000 per quarter per eligible apprentice. The subsidy will be in effect for up to 9 months, from 1 January 2020 to 30 September 2020. To be eligible, the apprentice is required to be on the employer’s books on 1 March 2020.
This new subsidy will not affect the existing Australian Apprenticeships Incentives Program in place and will operate on top of the existing program. The existing program gives an eligible employer between $750 and $4,000 for the hiring of an apprentice.
The eligibility details are being finalised by the Government and will be made available through the Australian Apprenticeship Support Network (AASN) providers.
It is expected that the subsidy payments will be received via the Australian Apprentices Incentives Program which currently provides cash payments to employers on apprentices meeting certain targets. Payments will be expected to be processed via the completion of claim SmartForms issued by the Government through an AASN provider.
Employers can register for the subsidy from 31 March 2020, and final claims of payment must be lodged by 31 December 2020.
Suggested Actions
Accountants with small business clients that have previously employed or apprentices or trainees, are in a position to inform our clients on this subsidy offered by the Government. While the details of the eligibility for the subsidy has yet been finalised, the subsidy will most probably be made available to small businesses with less than 20 employees.
Our clients affected by this subsidy will be keen to know how they can access the full $21,000 from the Government for each apprentice. We intend to make it clear that the subsidy is for 50 per cent of apprentice wages, capping at $21,000 for the nine months it is in effect.