How you can benefit from hiring an apprentice or trainee

by Zilla Efrat – journalist

Hiring an apprentice or trainee can be a good business decision, especially in the current environment of skills shortages and rising wages.

Apprentices and trainees can help you save on staff costs, improve your business’ productivity, promote loyalty and diversify your team. They are also able to bring the most up-to-date knowledge to your business, as well as fresh enthusiasm and energy.

Plus, there could be government incentives available to help with the costs.

For example, the new Labor government has promised to provide Australians access to Fee Free TAFE and to create more university places for Australians studying in an industry with a skills shortage. And, a number of government incentives already exist to help eligible apprentices and employers.

Apprenticeships and traineeships are formal on-the-job training arrangements that can lead to nationally recognised qualifications in more than 500 different occupations.

They are often taken up by school-leavers, people re-entering the workforce and adults who have decided to change their careers.

But there are some differences between apprentices and trainees.

Apprentices develop a skilled trade, such as electrical work, plumbing or cabinet making. When apprentices complete their apprenticeship successfully, they become qualified tradespersons.

Trainees train in a vocational area, such as office administration, hospitality or information technology.

Many areas of employment were hit by the COVID-19 pandemic. The new Labor government’s Fee Free TAFE program promises to help rebuild the industries hit hardest such as hospitality and tourism.

The program is also aimed at filling skills shortage gaps like those in trades and construction, resources, digital and cyber security, new energy and advanced manufacturing.

In addition, it targets future needs in the care economy, including jobs like childcare, aged care, disability care, nursing and community services.

The program will provide 465,000 Fee Free TAFE places, including 45,000 new TAFE places.

The various government incentives that already exist include incentives for hiring employees with school-based apprenticeship qualifications and for when workers start or complete their apprenticeships.

One scheme involves a payment of $4,000 to employers once adult workers upgrading their skills complete 12 months of training.

Another is a wage subsidy for employers of a new worker undertaking a full-time Certificate III or IV qualification that leads to an occupation listed on the National Skills Needs List in a rural or regional workplace.

There are also various incentives available to the apprentices themselves – for example, when they start certain types of apprenticeships.

A full list of what’s available can be found here.

Meanwhile, it’s unclear as to what will happen to the Morrison government’s skills and training boost announced in the Budget.

It is aimed at supporting small and medium-sized businesses to train and upskill their employees.

Those with annual turnover of less than $50 million will be able to deduct an additional 20 per cent of expenditure incurred on external training courses provided to their employees.

This measure started on 29 March 2022 and is set to apply until 30 June 2024.

Feel free to contact us for anything that relates to your business finances so we can help with your success.

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