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How To Boost Your Business With The Government-Funded BAC Subsidy

It’s been a tough couple of years for businesses and employees alike, with the COVID-19 pandemic having a significant negative impact on the Australian labour market. In response, the Government has launched a number of subsidies and initiatives to support the labour market and boost business recovery.  

The Boosting Apprenticeship Commencements (BAC) wage subsidy was introduced in October 2020 to support employers to employ new or recommencing apprentices or trainees, with the aim to build a pipeline of skilled workers to support sustained economic recovery.  

What is the boosting apprenticeship commencements wage subsidy? 

Through the subsidy, any business or Group Training Organisation that engages a new or recommencing Australian Apprentice between 5 October 2020 and 30 June 2022 could be eligible for a wage subsidy. The subsidy will cover 50 percent of wages paid to the new or recommencing apprentice or trainee. It will cover a 12 month period from the date they commence, with a maximum subsidy of $7,000 per quarter. 

When the subsidy was announced, it was capped to 100,000 places. However, the government has recently announced that it is now uncapped and available for businesses until March 2022. Now is the perfect time to find out if you’re eligible and apply.  

Some of the courses that trainees and apprentices can take include our BSB41419 Certificate IV in Work, Health and Safety, among a wide range of others. Take a look here for our full list of online courses

Is your business eligible? 

It is important to note that signing a new employee into a BAC Traineeship will not affect their wages, conditions, role or responsibilities in any way.  This is a funding model only.  

Employers will be eligible for the BAC subsidy if: 

  • They engage an Australian Trainee between October 5th 2020 and June 30th 2022, 
  • The Trainee is undertaking a Certificate II or higher qualification,  
  • The Trainee’s Training Contract is approved by the relevant State Training Authority, 
  • The subsidy applies to all businesses in Australia, regardless of size, industry, or location. 

How businesses benefit 

As our states open up and lockdowns slowly come to an end, businesses are finally able to look at the long term. While businesses get back on their feet and begin to grow, it is the perfect time to bring on new  upskilling employees that can support their business growth.  

The BAC subsidy provides businesses with financial support to bring on more employees, helping to ease the financial burden that some may feel as their business gets back to normal. Not only does this mean businesses will benefit from having employees with greater skill sets, but it can boost their capacity to gain more work or clients. 

With boosted business recovery and more skilled employees, the future of the labour market looks a lot more positive for businesses and employees alike.  

Once the 12 month period of the subsidy finishes, employers will then be eligible to move to the Completing Apprenticeship Commencements (CAC) wage subsidy for the second and third years of an apprenticeship. This means that businesses can receive longer-term support for any apprentices or trainees that they take on.  

Under the CAC, eligible employers will receive a 10 percent wage subsidy in the second year of an eligible apprenticeship, up to a maximum of $1,500 per quarter per apprentice, and a 5 per cent wage subsidy in the third year of their apprenticeship, to a maximum of $750 per quarter per apprentice. 

How to apply 

The application process is based on each state’s State Training Authority. They will need to approve the contract and the training each employee will be undertaking.  

The process differs from State to State so please contact us and we can guide you through the application. 

Now is the perfect time to apply for the BAC funding, as it has been recently extended to 31 March 2022.  

Plus, any final claims for payment must be lodged by 30 June 2025. 

Need help? 

It might be confusing to know if you are eligible or how to go about the application process. It’s important to confirm with your training provider to see if the training course is eligible. 

We can help you with detailed and customised information, plus advice on how the subsidy can work for you. Email us on [email protected] or get in touch with our friendly team. 

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