Government allocates apprentice bonus for small business

The Federal Government  will give small IT resellers a $3,350 bonus when they hire a young apprentice and train them to become an electronic equipment tradesman under the extended Apprentice Kickstart program.

In its 2010 Budget, the Federal Government announced that it would allocate $80 million to extend the Apprentice Kickstart Program for a further six months to 12 November 2010.

This extension follows the "success" of the initial program launched in the summer of 2009-10, when eligible employers took on about 24,400 young apprentices.

By accessing the Apprentice Kickstart Extension, employers will receive $3,350 in bonus payments in addition to the existing $1500 commencement incentive if they engage and retain a new apprentice under 19 in a skills shortage trade.

A skills shortage trade includes communications linespeople and electronic equipment tradesmen. The full list is available on the National Skills Needs List.

The $1500 commencement incentive payable at the three month point will be boosted by a bonus of $850 plus $2500 paid after nine months.

A spokesperson for the Australian Apprenticeships Centre told CRN that electronics tradesmen includes specialists in IT equipment. But the employer must meet all eligibility requirements under the Australian Apprenticeships Incentives Program.

Meanwhile, the Federal Government has allocated almost $20 million towards the modernisation of apprenticeships to support a shift from a time-served apprenticeship model to a competency-based system.

Under this system, high-achieving apprentices who meet competency requirements will be able to reduce the length of their training. This model would increase the supply of skilled labour without jeopardising training quality, the Government said. 

The extension of the Kickstart Program is part of Government's Budget 2010 announcement that it will invest more than $660 million in training, apprenticeships and adult literacy and numeracy to ensure Australia has the skills it needs to support a growing economy.

Resellers can find out more through the Australian Apprenticeships Centre.