How can the Trade Apprentice bonuses help?
Trades Apprentice Income Bonus
The Trades Apprentice Income Bonus forms part of the Government’s continuing response to maintain the increase in commencements and retention of people in skills shortage traditional trade apprenticeships as the Australian economy continues to recover from the impact of the global recession.
The Trades Apprentice Income Bonus will support 200,000 trade apprentices over four years in skills shortage occupations to stay in their training and get a quality job. An additional 50,000 Australian Apprentices are expected to start and remain with their Australian Apprenticeship by 2014 as a result.
From 1 January 2011, the Trades Apprentice Income Bonus will provide eligible Australian Apprentices with an additional $1,700 tax exempt bonus as they reach milestones in their training.
This will be paid on top of existing payments available under the Tools For Your Trade payment initiative, administered through the Australian Apprenticeships Incentives Program.
The Trades Apprentice Income Bonus means that eligible Australian Apprentices will receive a $5,500 tax exempt bonus over the course of their training.
Australian Apprentices who commence or recommence their Australian Apprenticeship on or after 1 January 2009, and who are undertaking a Certificate III or IV level qualification leading to a trade occupation on the National Skills Needs List, or a Certificate II, III or IV agricultural qualification or horticultural qualification in rural or regional Australia, will be eligible for the additional Trades Apprentice Income Bonus payments under the Tools For Your Trade payment initiative.
Australian Apprentices will be eligible for those payments where the relevant milestone point (12, 24, 36 months or successful completion) falls on or after 1 January 2011.
The current payment structure under the Tools For Your Trade payment initiative, and the revised payment structure including the Trades Apprentice Income Bonus is as follows:
| Milestone point |
Current Tools For Your Trade payment initiative structure |
Revised payment structure from 1 January 2011 |
| Three months |
$800 |
$800 |
| 12 months |
$800 |
$1,000 |
| 24 months |
$800 |
$1,000 |
| 36 months |
$700 |
$1,200 |
| Completion |
$700 |
$1,500 |
| Total |
$3,800 |
$5,500 |
Trade Apprentice Mentoring
From 1 July 2011, up to 40,000 apprentices will receive targeted mentoring and assistance to ensure they stay motivated and have the support they need throughout the first 12 months of their training.
Trade Apprentice Mentoring will include the provision of tailored support on work related issues, which may include teamwork, time management, coping with stress, mediation and other challenges that apprentices might face in the workplace.
Mentoring support may also be available for out of work challenges such as budgeting and living away from home.
Information supplied by the Australian Business Limited Apprenticeships Centre, Nov 2010