Gillespie announces young apprentices and small business will benefit from a new regional waged subisdy trial

7th November 2018

Our local area has been included in a $60-million investment to trial a wage subsidy as an incentive for employers in regional and rural communities to engage more apprentices,” Federal Member for Lyne Dr David Gillespie announced during a visit today to Wauchope manufactuer Food Machines Australia.Dr Gillespie said the Minister for Small and Family Business, Skills and Vocational Education Senator Michaelia Cash had advised him the trial would see up to 1,630 new Australian Apprentices in areas of skills needs and that our region had been included.

“Small business is the jobs engine room of our local economy and if we are to create more jobs, we must be giving them every opportunity to grow. That is why we are cutting the small business tax rate and reducing red tape at the Federal level,” Dr Gillespie said.

“In smaller communities like ours, small business plays a vital role, from giving young Australians their first real job to supporting our local charities and sporting organisations. Through this incentive we are securing the skills our regional and rural businesses need to remain competitive and give local students new opportunities at home.”

From 1 January 2019, the new subsidy under the Australian Apprenticeships Incentives Program (AAIP), will support eligible new Australian Apprentices in areas such as plumbing, mechanical, electrical, painting trades and hairdressing.“A VET qualification is every bit as important to the economy as a university degree.

“That’s why our investment in the Skilling Australians Fund – alongside the State Government – is vital to create thousands of additional pre-apprenticeships, apprenticeships and higher apprenticeships.”

Dr Gillespie said under the subsidy, eligible local employers will be able to receive payments based on the apprentice’s relevant award wage rates.

“Subsidies will be provided at 75 per cent of the apprentice’s award wage in the first year, followed with 50 per cent in the second year and 25 per cent in the third year,” Dr Gillespie said.

“The investment is part of our Government’s commitment to maintain a strong vocational education and training (VET) sector that delivers the quality skilled workforce our community needs.”

The new wage subsidy will complement other incentives currently available through the AAIP and support the engagement of eligible new full-time apprentices at the Certificate III and IV levels in occupations on the National Skills Needs List in regional and rural communities.


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