What is the Boosting Apprenticeship Commencement (BAC) wage subsidy?

To assist with the recovery from the impact of COVID-19, the Australian Government is currently providing support to eligible employers who engage a new Australian Apprentice. The Boosting Apprenticeship Commencements (BAC) wage subsidy supports businesses and Group Training Organisations to take on new apprentices and trainees, to build a pipeline of skilled workers to support sustained economic recovery.

How much is the subsidy?

Through the BAC wage subsidy, any business or Group Training Organisation that engages an Australian Apprentice between 5 October 2020 and 30 June 2022 may be eligible for a wage subsidy of 50 per cent of wages paid to a new or recommencing apprentice or trainee for a 12-month period from the date of commencement to a maximum of $7,000 per quarter.

Can I receive a subsidy for any apprentice that I take on before 30 June?

No, the wage subsidy is only available for commencing or recommencing apprentices and trainees

What is the Completing Apprenticeship Commencements (CAC) wage subsidy?

Any business that receives the BAC wage subsidy will also be eligible for extended support through the Completing Apprenticeship Commencements (CAC) wage subsidy. Eligible employers of a BAC supported apprentices or trainee will transition onto the time-limited Completing Apprenticeship Commencements (CAC) wage subsidy for the second and third year of the apprenticeship or traineeship. Under CAC, eligible employers will receive a 10 per cent wage subsidy in the second year of an eligible apprenticeship, up to a maximum of $1,500 per quarter per apprentice or trainee (CAC1), and a 5 per cent wage subsidy in the third year of their apprenticeship or traineeship, to a maximum of $750 per quarter per apprentice (CAC2).

How do I access BAC and CAC wage subsidies?

When you take on a commencing or recommencing Master Builders Apprentice or Trainee, Master Builders Apprenticeship Services (MBAS) will manage for you any eligible BAC and CAC wage subsidies from registration through to the end of the claim period for the registered apprentice or training. This process will include:
  • Sign up of the new apprentice or trainee
  • Registration the Apprentice for the BAC wage subsidy through the Apprenticeship Data Management System (ADMS)
  • Submitting quarterly claims and reporting requirements for wage subsides through ADMS
  • Monitoring and attending to any enquiries
Note:
  • The wage subsidy payment will be paid to MBAS
  • MBAS will then credit the Training Employers account with the wage subsidy in full
  • The credit can be used to offset against future invoices, or a refund can be organised if the account has no outstanding amounts owing.

What happens after the 30 June 2022?

After the 30 June 2022, the BAC and CAC wage subsidies will be discontinued. The Australian Government has announced that these programs will be replaced by a new Australian Apprentices Incentive System (AAIS).  We are still waiting for more details on AAIS, but the government have released the following details:
  • From July 1, 2022, the Australian Apprentices Incentive System will replace the BAC and CAC wage subsidies.
  • In its first phase, from 1 July 2022 to 30 June 2024, the Australian Apprenticeships Incentive System will provide broad support to the economy through wage subsidies for eligible employers in priority occupations.
  • Hiring incentives will be available for employers of apprentices undertaking a qualification in an occupation that does not qualify for the Australian Apprenticeship Priority List. Priority occupations are those listed on the Australian Apprenticeship Priority List.
  • From 1 July 2024, following a checkpoint to assess progress, support will be available for priority occupations only, through a mix of employer and apprentice payments, including a hiring incentive for employers; and training support payments for apprentices.
The table below summaries the various wage subsidies available now and after the 30 June 2022:
BAC & CAC extended until 30 June 2022
Employers 50% wage subsidy in 1st year, 10% in 2nd, 5% in 3rd
Apprentices/trainees None
Australian Apprentices Incentive System- Phase One 1 July 2022 to 30 June 2024
Priority Occupations Non-priority Occupations
Employers 10% wage subsidy for 1st & 2nd year, 5% for 3rd year $3,500 hiring incentive
Apprentices/trainees New Australian Apprentices Training Support payment up to $5,000 comprising $1,250 paid every six months over two years None
Australian Apprentices Incentive System- Phase Two 1 July 2024
Employers Hiring incentive up to $4,000 None
Apprentices/trainees Payment of up to $3,000 None
Please note: all payments from the Australian Government for wage subsidies are made quarterly in arrears.

Where do I find more information?

More information about the wage subsidies can be found here or you can contact Master Builders Apprenticeship Services to discuss your apprentice and trainee needs and your eligibility for wage subsidies.

02 8586 3533

[email protected]