NEW APPRENTICE WAGE SUBSIDIES – What salon owners need to know.

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Posted November 12, 2018

Salon owners know that the cost of an apprentice far outweighs the benefits, at least for the first few years. Between the time invested in training, the cost of schooling and supplies, choosing to take on an apprentice is not something to be done lightly or without considering the bottom line of your business. In rural communities that have been hit with tough times and a lack of talent, this becomes doubly difficult and can often be the major disincentive for taking on apprentices, leading to skills shortages in a number of areas.

 

The current National Government will be investing $60 million to trial a wage subsidy to incentivise employers in regional and rural communities to engage more apprentices. The prediction for this program is an increase of up to 1,630 Australian Apprentices in areas of skills needs. Hairdressing is listed as one of the trades included in the National Skills Needs List, which can be found here.

 

 The Australian Apprentice Wage Subsidy provides support in the first three years of an Australian Apprenticeship as follows:

• 75 per cent of the first year award wage;

• 50 per cent of the second year award wage;

• 25 per cent of the third year award wage.

 

The Australian Wage Subsidy Trial is available to employers who sign up and commence an Australian Apprentice from 1 January 2019 until there are a total of 1630 sign ups. To be eligible for the trial, the employee must be registered onto an apprenticeship in a Certificate III or IV qualification that leads to an occupation listed on the National Skills Needs List in a rural and regional workplace. The Australian Apprentice must be employed under the relevant Award (modern award) for their occupation. The employer must have not previously employed an Australian Apprentice or have not employed an Australian Apprentice in the three-year period prior to 1 January 2019. The employer must also meet all other eligibility requirements under the Australian Apprenticeships Program.

 

You can find the areas which are considered Rural and therefore eligible for The Australian Apprentice Wage Subsidy Trial by downloading this fact sheet here.

 

HABA encourages all of our members who are living in rural areas and considering becoming part of this trial to enter your details as soon as possible to avoid disappointment. Whether you consistently take on apprentices or haven’t taken on a new apprentice in a number of years due to the cost, now is the time to see significant financial benefits from employing your apprentice. To find out more and to register for the trial, visit the website.