Support for Mid-Career Apprentices initiative
The objective of the Federal Government's ‘Support for Mid-Career Apprentices initiative is to encourage more adults in the workforce to undertake a trade apprenticeship by providing additional financial incentives.
Currently, under some industrial arrangements, if an existing worker becomes an Australian Apprentice their employer is required to maintain their existing wage or pay an adult apprenticeship rate where the worker is 21 years or more. These arrangements create a disincentive for employers to allow their workers to take up an Australian Apprenticeship or to engage older Australian Apprentices. In such cases, the new mid-career incentive will be paid to employers to subsidise wage costs.
In other cases, when a worker becomes an Australian Apprentice their income can drop to the junior apprenticeship rate. In this situation, the new mid-career incentive will be paid directly to the Australian Apprentice to boost their income.
Apprentice wage rates can be a disincentive to the take-up of apprenticeships by older workers. The new incentive will either be paid to employers to subsidise wage costs or directly to the Australian Apprentice to boost their income.
Who does it apply to?
From 1 July 2007, mid-career Australians aged 30 and over when they commence an Australian Apprenticeship at Certificate III or IV level in a trade occupation in high demand will attract additional financial incentives.
How do I apply and get paid?
From 1 July 2007, Australian Apprentices or employers will be able to apply for the incentive through Australian Apprenticeships Centres. Payments will be made fortnightly to your nominated bank account. To find your nearest Australian Apprenticeships Centre call 13 38 73 or visit the Skills for the Future website at www.australia.gov.au/skillsforthefuture.
How much will be paid?
The amount payable to either the Australian Apprentice or the employer will be $150 per week ($7,500 per annum) in the first year of the apprenticeship and $100 per week ($5,200 per annum) in the second year of the apprenticeship or until completion of the apprenticeship if you complete within the first two years. As an Australian Apprentice becomes more skilled in the second year, their award wage will increase. Therefore, the wage subsidy or Australian Apprentice payment can be reduced.
Information on industrial arrangements can be obtained from the WorkChoices Infoline on 1300 363 264. Employers will also attract normal employer incentives subject to the exisiting eligibility criteria.
Which trades does this apply to?
Benefits under the Australian Government's Support for Mid- Career Apprentices initiative may be available to eligible Australian Apprentices in the following trades (note only ElectroComms and EnergyUtilities related trades are listed):
- Electrician
- Refrigeration and Air-conditioning Mechanic
- Electrical Powerline Trades
- Electronic Instrument Trades
- Electronic Equipment Trades
- Lift Mechanic
(This list is current as at 1 January 2007 but may be subject to change prior to 1 July 2007. Please contact your Australian Apprenticeships Centre to confirm eligibility).
Where can I find out more?
More information about the Support for Mid-Career Apprentices initiative is available from your local Australian Apprenticeships Centre, by calling the Australian Apprenticeships referral line on 13 38 73 or by visiting the Skills for the Future website at www.australia.gov.au/skillsforthefuture
How many Australian Apprentices and employers will receive this benefit?
When fully implemented, the new incentives will be provided to up to 10,000 people per year. This includes people 30 and over who are starting an eligible Australian Apprenticeship and people already in an eligible Australian Apprenticeship in July 2007 who were 30 or over when they commenced and are in the first or second year of the apprenticeship.
Do I have to pay tax on the incentive?
Yes. Payments you receive under the Support for Mid-Career Apprentices initiative will be treated as assessable income for both employers and Australian Apprentices. For further information on the tax treatment of payments received under the Support for Mid-Career Apprentices initiative you can:
- visit the Australian Taxation Office website at www.ato.gov.au
- phone the Australian Taxation Office on 13 28 66, or
- contact your tax adviser.
Other info
The ABCs 7.30 Report highlighted the value to industry and employees of older apprentices. You can access the transcript for the story 'Older workers sign up for apprenticeships'.
