The Federal Government’s has announced changes to the Australian Apprenticeships Incentives Program in terms of amendment to the existing worker requirements. The Sydney Morning Herald (SMH) stated in an article written by Anna Patty, “’It’s not open slather now’: new restrictions to prevent apprentice subsidy rorts”, stating “Industry group and vocational training leaders have welcomed the federal government’s decision to restrict access to its new $1 billion scheme to support 100,000 trainees and apprentices after warning it could be rorted.
The government said it would tighten eligibility to the scheme after concerns were raised about the risk of training organisations and employers signing up existing employees.”
The stated objectives of the program are “to contribute to the development of a highly skilled and relevant Australian workforce that supports economic sustainability and competitiveness. This is achieved by encouraging:
- genuine opportunities for skills-based training and development of employees; and
- people to enter into skills-based training through an Australian Apprenticeship.
To be eligible for payments under the Program, an Australian Apprentice must be:
- employed in an Australian Apprenticeship arrangement in a State or Territory of Australia; and
- employed under the terms and conditions of a Training Contract. The Training Contract must be signed by the Australian Apprentice and the employer, and be formally approved by the STA; and
- undertaking an accredited training program, which leads to a nationally recognised qualification and includes both paid work and structured training and is responsive to user choice. The Australian Government may still provide incentives where a State or Territory Government does not provide funds for the off-the-job training, provided that the Australian Apprenticeship meets the Program’s eligibility criteria; and
- employed in an Australian Apprenticeship at the Certificate II, III, IV, Diploma or Advanced Diploma level.
Employment arrangements which are not eligible for any payments under the Program are:
- employment offered by a private household; or
- structured vocational training positions such as articled clerk or cadetships as these are outside the intended scope of Australian Apprenticeships; or
- employment which does not guarantee the employee a regular wage or salary such as commission-based positions, sub-contracting, casual or piece-rate work; or
- business arrangements between the employer and employee (Australian Apprentice) where the employee is a partner/director in the employer’s business, the trustee of a trust, a franchisee or a shareholder who has a substantial financial concern in the business. This includes business arrangements between an employee and a host employer where the employee is employed by a GTO; or
- where the Australian Apprentice is a primary school student. Young people who are primary school students at the commencement of an Australian Apprenticeship and move to secondary school do not attract payments under the Program while they continue in that Australian Apprenticeship; or
- employment arrangements which specify contract or seasonal employment; or
- where the Australian Apprentice is employed in a Supported Wage Arrangement and is paid according to a productivity or competency based arrangement as a proportion of wages set by an award.
Where there is reasonable doubt about the validity of the employment arrangements, access to payments under the Program should be rejected.”
Further information about Australian Apprenticeships can be obtained from the Australian Apprenticeships website.
For a copy of the latest guideline which provides all of the above and more download it at: “AUSTRALIAN APPRENTICESHIPS INCENTIVES PROGRAM GUIDELINES”
The NSW Agrifood ITAB welcomes the decision of the Government to make changes to the program to ensure potential rorts are mitigated against and young people are given every opportunity to become an attractive proposition to an employer to employ apprentices.
