Skill development top priority for JobMaker Plan
Announced as part of the 2020-2021 Budget, the Federal Government’s $74 billion JobMaker Plan is designed to support Australia’s economic recovery in the wake of the COVID-19 pandemic.
The JobMaker Plan has three core objectives: creating jobs, investing in apprenticeships, and boosting the skills of Australians to ensure they are ready for the jobs of the future.
Several of the programs announced under the JobMaker Plan are perfect for manufacturers. It will enable them to deliver effective, highly relevant education and training to the next generation of workers, and to build a skilled labour pool trained in exactly the areas they need to maintain productivity and profitability.
In particular, the Boosting Apprenticeship Commencements program and the JobMaker Hiring Credit have the potential to help manufacturers expand and upskill their workforce.
Boosting Apprenticeship Commencements Program
The Federal Government will invest $1.2 billion in the Boosting Apprenticeship Commencements program to support the ongoing employment and upskilling of 100,000 new apprentices and trainees.
Under the program, any businesses or Group Training Organisation that engages an Australian apprentice from 5 October 2020 may be eligible for a subsidy of 50 per cent of wages, to a maximum of $7,000 per quarter. The subsidy applies to any business, regardless of its geographic location, occupation, industry or size – a game changer for businesses in the manufacturing industry.
There is no limit on the number of apprentices or trainees that employers may choose to support during the program’s tenure. However, if a business is considering to access the program, it is encouraged to make an application early—before the 100,000 quota is reached.
For further information about the Boosting Apprenticeship Commencements program:
- Download the Boosting Apprenticeship Commencements fact sheet
- Review the eligibility requirements in the program guidelines
- Contact an Australian Apprenticeship Support Network provider
JobMaker Hiring Credit
The JobMaker Hiring Credit is designed to encourage Australian businesses to employ additional young job seekers. From 7 October 2020, eligible employers can claim $200 per week for each additional employee hired, aged between 16 and 29 years old, and $100 per week for each additional employee aged between 30 and 35 years old. It is expected that the program will create approximately 450,000 new jobs.
To be eligible, the employee must have received the JobSeeker Payment, Youth Allowance, or Parenting Payment for at least one of the previous three months at the time of hiring. The payments will be made to the employer via the Australian Taxation Office (ATO) in arrears from February 2021.
For further information about the JobMaker Hiring Credit:
- Download theJobMaker Hiring Credit fact sheet
- Review the information available on the ATO’s website