Completing Apprenticeship Commencements wage subsidy announced

28 September, 2021

The Federal Government has announced a new wage subsidy to help employers of apprentices and trainees who are eligible for the Boosting Apprenticeships Commencement (BAC) wage subsidy to complete their qualifications.

The $716 million Completing Apprenticeship Commencements (CAC) wage subsidy will provide eligible employers with a subsidy of up to 10% of an Australian ApprenticeÔÇÖs gross wages paid in their second year of employment, and 5% in their third year.

The subsidy is capped at $1,500 per quarter (paid in arrears) per apprentice or trainee in their second year, and $750 per quarter in the third year. CAC only applies to employers of apprentices or trainees who are registered and eligible to receive the BAC wage subsidy. BAC registrations close on March 31st 2022.

CAC is designed to ease the transition for all BAC eligible employers by providing transitional support for the second and third year of an Australian Apprenticeship.

The new measures are expected to support approximately 270,000 anticipated commencements under the BAC wage subsidy between October 5th 2020 and March 31st 2022.

As per the current process with BAC claims, a CAC claim form will be automatically issued to eligible employers as the CAC claim period falls due, the first being 1 January 2022.

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