Multiple incentives available to offset training costs

18 October, 2017

While taking on apprentices and trainees is a long-term investment, savvy employers can take advantage of government support to reduce the upfront costs of training new staff.

There are a number of programs to help employers reduce their financial costs, including multiple incentives for each job seeker.

CCI’s Apprenticeship Support Australia Manager, Lena Constantine, says that if employers put some planning into their employment and training strategies and achieve a clear understanding of all the financial incentives available, they can reduce their recruitment costs substantially.

“Savvy employers can reduce the cost of taking on new, unskilled workers for apprenticeships and traineeships and train them up to be a great asset to their organisation,” says Lena.

Apprenticeship Support Australia has recently helped a small electrical contracting business to employ a new electrician with assistance from the PaTH program, wage subsidies and the Australian Apprenticeships Incentives Program.

Working with their local jobactive provider, the employer was provided with a small selection of potential candidates. The electrical business chose a job seeker who had been on unemployment benefits for over 6 months. The job seeker was offered an unpaid trial of 30 hours a week in the workplace, allowing them to determine if they would be a good fit for an ongoing role. 

The candidate continued to be paid Centrelink payments during this period and the small business attracted a $1,000 incentive for offering the trial. Insurance for interns coming through the PaTH program is covered by the government.

After a three-week period, the business was happy with the candidate’s performance and offered an on-going role as an electrical apprentice. The intern was under the age of 24, allowing the employer to take advantage of a wage subsidy of up to $10,000. This subsidy can be paid in instalments after four weeks of employment with full incentive paid after the employee has completed six months in the workplace.

Enrolling their new employee into the electrical apprenticeship also allowed the employer to attract another $4000 in apprenticeship incentives that were dispersed over the training period.

“In this instance, the employer was able to offset their recruitment costs with $15,000 in government support,” says Constantine. “What a great outcome. An unemployed job seeker finds the opportunity to start out on a great career path as an electrician and the employer minimises their recruitment costs”.

Investing in apprenticeships and traineeships helps to safeguard your future workforce. Talk to the Apprenticeship Support Australia team today to find out how we can support your business through apprenticeships and traineeships.