ACCI chief executive Andrew McKellar said businesses need at least a two-year commitment to the BAC program if they are to see lasting benefits that boost skills and address chronic workforce shortages.
Last week, the government announced it was extending the program with a $365.3 million investment aimed at supporting an extra 35,000 apprentices and trainees to get into a job.
Treasurer Josh Frydenberg said the continued strong support for the skills sector would help lock in Australia’s economic recovery by delivering opportunities for apprentices and certainty for businesses.
Enrolments for the Boosting Apprenticeship Commencements wage subsidy, which provides employers with 12 months of wage subsidy support, are being extended to the end of the 2021-22 financial year (30 June 2022).
However, Mr McKellar said the three-month extension of the BAC scheme doesn’t build into the federal budget and ongoing commitment for businesses to continue hiring apprentices and trainees amid current economic pressures.
“The Government’s BAC subsidy has been outstandingly successful in rebuilding our country’s skills base in the COVID recovery period – since the inception of the scheme, we have seen real growth in these job and training opportunities, ending a decade of decline,” he said.
“If we are to lock in these gains, a three-month extension is simply not enough.
“With the incentive now set to expire on 30 June, ACCI will continue to advocate for a long-term commitment from the Government and Federal Opposition to set a minimum 30 per cent wage subsidy in the first 12 months of apprenticeships, and first six months of one-year traineeships.
“Given businesses are facing the most severe skill and labour shortages in almost 50 years, employers must have the confidence to employ a new apprentice or trainee. Apprenticeships require considerable investment from employers, and continued support greatly helps the business case for taking on new trainees and apprentices.
“ACCI’s recently released policy paper, ‘Overcoming Australia’s Labour and Skills Shortages through Skills Development, Workforce Participation and Migration’ made the strong case for wage subsidies to continue. A return to previous incentive levels will halt all momentum in growing apprenticeship numbers.”
As it stands now, any business that receives the Boosting Apprenticeship Commencements (BAC) wage subsidy will also then be eligible for extended support through the Completing Apprenticeship Commencements (CAC) wage subsidy for the second and third year of a Boosting Apprenticeship Commencement-supported apprenticeship.
As of 24 March 2022, over 73,000 businesses have been supported to put on an apprentice or trainee through Boosting Apprenticeship Commencements subsidy.
Any employer who takes on an apprentice or trainee up until 30 June 2022 can gain access to:
- Fifty per cent of the eligible Australian apprentice’s wages in the first year, capped at a maximum payment value of $7,000 per quarter per Australian apprentice
- Ten per cent of the eligible Australian apprentice’s wages in the second year, capped at a maximum payment value of $1,500 per quarter per Australian apprentice
- Five per cent of the eligible Australian apprentice’s wages in the third year, capped at a maximum payment value of $750 per quarter per Australian apprentice
