The State Government will introduce an Employer Incentive Scheme to help thousands of Western Australian employers with the costs of employing an apprentice or new entrant trainee.
A total of $182.4 million has been allocated for a new Employer Incentive Scheme and training subsidies, including more than $45 million for regional Western Australia. The scheme will be funded through the redirection of payroll tax, once legislation is passed to remove the remaining payroll tax exemption for trainees. The payroll tax exemption for apprentices will be retained.
Under the Employer Incentive Scheme, businesses will receive a base payment of up to $8,500 for employing an apprentice or new entrant trainee. It is estimated this scheme will extend State Government support to nearly 6,000 businesses.
Additional loadings will increase the payment for regional areas, employees with disability, priority occupations, Aboriginal and Torres Strait Islander employees, and apprentices aged between 21 to 30 years.
Together with the Construction Training Fund, the new scheme will extend support to employers in all industries who take on apprentices and trainees.
The incentive scheme will particularly benefit small businesses and not-for-profit employers.
The State Government has worked with industry to develop the scheme, as stage two of the reform of payroll tax exemptions that began in November 2017.
For larger businesses, the new scheme will replace the payroll tax exemption for new entrant trainees, providing more transparent and equitable State Government support.
Around 2,600 businesses currently benefit from the payroll tax exemption for apprentices and trainees.
Summary of scheme:
- The new Employer Incentive Scheme will provide financial assistance to Western Australian businesses who take on an apprentice or new entrant trainee;
- Under the scheme, businesses will receive a base payment of up to $8,500 for employing an apprentice or trainee; and
- The scheme will be effective from July 1, 2019.
Speaking at the launch Education and Training Minister Sue Ellery commented:
“The Employer Incentive Scheme will support real training for real jobs, and provide value for WA taxpayers.
“The State Training Board has identified that cost is a significant barrier to taking on an apprentice or trainee. The Employer Incentive Scheme will help reduce this barrier and grow apprenticeship and traineeship commencements.”