$19M Apprentice Wage Support For Small Businesses Open Now

 

The Small Business Apprenticeship Pilot Program was launched today, delivering $19 million in wage subsidies to 2,000 construction apprentices. 

The program covers a portion of apprentice wages for an average training period of 8 weeks per year, starting at a 50% subsidy of the typical first and second year wage and reducing to 25% in the third and fourth years. This means employers can claim up to $4,580 to subsidise the wages of first and second year construction apprentices and up to $2,290 for third and fourth year apprentices. 

Applications for the funding is now live on the Government website. Click below to read more, check eligibility, and register.

Small Business Apprenticeship Pilot Program

This funding comes as a big win for small and family businesses and a positive result of MPAQ's ongoing advocacy efforts for government to provide greater support for businesses. However, MPAQ is calling for the expansion of the funding to help strengthen the skills pipeline ahead of the 2032 Olympic Games. ​​​​​​​

MPAQ member and councillor Warwick Royal has had to turn away keen prospective apprentices as the cost is too high to take them on.

The CSQ At a Glance Industry Outlook 2024-25 reported that there were close to 30,000 construction apprentices training in the state – meaning today’s funding would only cover close to 7 per cent of that number.

Warwick currently employs five apprentices and 13 tradespeople, above the average ratio. He also receives multiple job inquiries every week, but he can’t take on any more apprentices.

Nationally it costs an employer over $250,000 to employ an apprentice over a four-year apprenticeship, yet they currently receive only 2% of that amount in government incentives.

Warwick says this directly affects the work businesses like his can take on and limits the capacity to serve clients across a greater region. He added said that without greater support, “it will only get worse emphasising the need to invest in promoting and securing the future of our trade.”

“We need to make it financially viable for all employers to supervise and train apprentices,” he said.

Only one tenth of training happens at college. The rest of the learning happens on-site, through one-on-one supervision by a licensed plumber.

The current state of the sector means a solid pipeline of apprentices is jeopardised. Come the 2032 Olympics, the workforce needs to increase by two or three-fold.  

This is likely to lead to consumers having to pay more for maintenance plumbers.

MPAQ CEO Penny Cornah says the association welcomes today’s announcement as a positive result of our ongoing advocacy efforts for greater support for businesses to take on an apprentice. However, there needs to be expansion of eligible businesses and a long-term commitment for the state to be able to deliver upcoming infrastructure projects.

“We welcome the announcement, and we want to see it increase and continue for years to come. We urge the government to consider other businesses that don’t fit in the small business category,” she said. “For us to have any chance of delivering Olympics, addressing the housing crisis and other major infrastructure projects, this funding needs to go further.”

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