Wage Subsidies & Incentives for ECEC Service Providers

Wage Subsidies & Incentives for ECEC Service Providers

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A woman staring at the camera in a scene meant to depict childcare service providers.

To aid economic recovery in a world wrought by COVID-19, the Australian Government this month announced several business incentives in the 2020-21 Budget. 

To help you make sense of these and how they apply to businesses in the Early Childhood Education and Care sector, we’ve broken down some of the most important ones for you.

If you’d like more information, please feel free to get in touch with our team.

 

1. Boosting Apprenticeship Commencement Wage Subsidy

What is it?

A $1.2 billion wage subsidy for eligible businesses that take on new apprentices and trainees on or after 5 October 2020.

Businesses may receive a subsidy of 50 per cent of wages paid to new apprentices - up to $7,000 per quarter - between 5 October 2020 and 30 September 2021.

Who’s eligible?

This subsidy is available to businesses of any size, industry and location in Australia.

You must engage an Australian apprentice or trainee on or after 5 October 2020, and they must be completing a Certificate II or higher qualification, and have a training contract formally approved by the state training authority.

How can I get started?

The subsidy is capped at 100,000 apprentices and trainees. So, if you’re keen to apply, it’s best to get in quick. Contact an Australian Apprenticeship Support Network provider and they’ll get you started.

Amazing Education and Training offers traineeships and apprenticeships for both a Certificate III in and Diploma of Early Childhood Education and Care. We do the heavy lifting for childcare businesses, helping you find the best apprentice or trainee that suits you. 

Our industry-leading trainers take care of educating your apprentice or trainee, providing learning materials, managing assessment, meeting 1-on-1 with students and offering unwavering support. All you need to do is work with us to arrange suitable training times.

Learn more: https://docs.employment.gov.au/documents/boosting-apprenticeships-commencements-fact-sheet

 

2. JobMaker Hiring Credit

Note that this measure is subject to the passage of legislation.

What is it?

Weekly credit for eligible employers for each new young job seeker they employ. Subject to eligibility criteria, employers can receive the following JobMaker Hiring Credit over 12 months from 7 October 2020:

  • $200 per week for each eligible employee aged 16 to 29
  • $100 per week for each eligible employee aged 30 to 35.

To be eligible, employees must have been receiving income support payments (such as JobSeeker Payment) for at least one of the three months prior to being hired. Further eligibility requirements apply; find out more here.

Who’s eligible?

Eligible employers are those who:

  • hold an Australian Business number (ABN)
  • are up-to-date with their tax lodgement obligations
  • are registered for Pay As You Go (PAYG) withholding
  • Are reporting through Single touch payroll (STP).

How can I get started?

The JobMaker Hiring Credit will be administered by the ATO, and you will be able to register for the scheme via their website from December 7, 2020. The legislation has to have passed the Parliament before it comes into effect, so stay tuned for more details soon.

Learn more: https://budget.gov.au/2020-21/content/factsheets/download/jobmaker_hiring_credit_factsheet.pdf

 

Incentives already on offer for the Early Childhood Education and Care sector

1. Supporting Apprentices and Trainees Wage Subsidy

What is it?

The Australian Government’s Supporting Apprentices and Trainees Wage Subsidy previously supported businesses with fewer than 20 employees. It has recently been extended to include medium-sized businesses who had an apprentice or trainee in place on 1 July 2020.

Eligible employers can apply for a wage subsidy of 50 per cent of an eligible apprentice or trainee’s wages paid until 31 March 2021, up to A$7,000 a quarter.

Who’s eligible?

Your business may be eligible for this wage subsidy if you:

  • you employ fewer than 200 people
  • employed an apprentice or trainee on 1 July 2020.

How can I get started?

Claims from medium-sized businesses opened on 1 October 2020. Contact an Australian Apprenticeship Support Network provider and they’ll get you started.

Find out more: https://docs.employment.gov.au/system/files/doc/other/supporting_apprentices_and_trainees_fact_sheet.pdf

 

2. Free apprenticeships for under 25s

What is it?

As per the Free Apprenticeships for Under 25s incentive, the Queensland Government will cover the costs of training for apprentices and trainees under 25 until the end of September 2022. Students can study either a CHC30113 Certificate III in Early Childhood Education and Care or a CHC50113 Diploma of Early Childhood Education and Care.

Who’s eligible?

Students are encouraged to contact their RTO as further eligibility requirements may apply, but at the very least they must:

  • permanently reside in Queensland
  • be under the age of 25 when commencing the apprenticeship or traineeship.

Find out more: https://freeapprenticeships.desbt.qld.gov.au/

Ready to build your amazing career?

If you’re ready to start a new career or expand your qualifications in childcare, chat to our friendly team today. You can reach us on 1300 707 058, at courses@amazing.edu.au, or simply by filling out the enquiry form below.

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