The Australian Government has announced in the Budget that it will discontinue the $1,500 standard employer commencement incentive payment and increase the standard completion incentive by $500 to $3,000 for existing worker apprentices in non-National Skills Needs List (NSNL) occupations, generating an overall saving to government revenue of $353.6 million over four years from 2012-13.

 

 

Commonwealth incentive payments paid to employers of existing workers undertaking an apprenticeship in NSNL occupations and employers of new workers undertaking an apprenticeship in non-NSNL occupations will remain unchanged.

 

 

The Government says the measure aims to target employer apprenticeship incentives more carefully and increase focus on skills shortage occupations and higher completion rates. It says that employers incur a range of costs in hiring new staff, and it is therefore appropriate that the incentive payment is lower for existing staff.

 

 

This measure will re-target apprenticeship incentive payments to encourage higher completion rates for existing workers in non-National Skills Needs List occupations.

 

In addition, the Government will achieve savings of $47.8 million over four years from 2012-13 by changing the payment arrangements for the standard apprenticeship commencement incentive. The incentive payment will be made six months after an apprentice commences employment rather than the current three months.

 

The standard commencement incentive currently provides employers of apprentices at or above the Certificate III level with $1,500 and employers of apprentices at the Certificate II level in nominated equity groups with $1,250.