The McGowan Government will introduce an Employer Incentive Scheme to help thousands of Western Australian employers with the costs of employing an apprentice or new entrant trainee.
A total of $182.4 million has been allocated for a new Employer Incentive Scheme and training subsidies, including more than $45 million for regional Western Australia.
The scheme will be funded through the redirection of payroll tax, once legislation is passed to remove the remaining payroll tax exemption for trainees. The payroll tax exemption for apprentices will be retained.
Under the Employer Incentive Scheme, businesses will receive a base payment of up to $8,500 for employing an apprentice or new entrant trainee. It is estimated this scheme will extend State Government support to nearly 6,000 businesses.
Additional loadings will increase the payment for regional areas, employees with disability, priority occupations, Aboriginal and Torres Strait Islander employees, and apprentices aged between 21 to 30 years.
Together with the Construction Training Fund, the new scheme will extend support to employers in all industries who take on apprentices and trainees.
The incentive scheme will particularly benefit small businesses and not-for-profit employers.
The State Government has worked with industry to develop the scheme, as stage two of the reform of payroll tax exemptions that began in November 2017.
For larger businesses, the new scheme will replace the payroll tax exemption for new entrant trainees, providing more transparent and equitable State Government support.
Around 2,600 businesses currently benefit from the payroll tax exemption for apprentices and trainees.
For more 2019-20 State Budget information, visit http://www.ourstatebudget.wa.gov.au
As stated by Education and Training Minister Sue Ellery:
"The Employer Incentive Scheme will support real training for real jobs, and provide value for WA taxpayers.
"The State Training Board has identified that cost is a significant barrier to taking on an apprentice or trainee. The Employer Incentive Scheme will help reduce this barrier and grow apprenticeship and traineeship commencements."
As stated by Finance Minister Ben Wyatt:
"The Employer Incentive Scheme is an important part of the McGowan Government's election promise to boost the training sector under the Plan for Jobs. We are committed to working with Western Australian businesses to create more training opportunities.
"The aim of the new scheme is to increase apprenticeship and traineeship commencements by extending State Government support to a wider range of businesses.
"The scheme will make State Government assistance available to a much wider range of businesses, not just those that pay payroll tax."
