Federal government commits $1.2bn to support thousands of new tradies

The federal government will inject more than a billion dollars for cut-price apprenticeships to support businesses that want to hire new tradies.

The federal government will inject $1.2 billion into the economy to support the employment of 100,000 new apprenticeship and trainee schemes. Picture: Annette Dew

The federal government will inject $1.2 billion into the economy to support the employment of 100,000 new apprenticeship and trainee schemes across Australia.

Ahead of Tuesday’s Federal Budget, the Morrison government says it will introduce a 50 per cent wage subsidy for businesses which take on a new apprentice.

Prime Minister Scott Morrison said the package forms part of the federal government’s recovery plan from the economic recession sparked by the coronavirus pandemic.

“During this pandemic the federal government has been focused on supporting and creating jobs as well as identifying the skills we need in the economic rebuild,” Mr Morrison said.

“Whether it’s the manufacturing, housing and construction, arts or mining sectors — this new wage subsidy gives businesses certainty to hire and provides a career path to aspiring, young tradies.”

Prime Minister Scott Morrison said the package forms part of the federal government’s recovery plan from the economic recession. Picture: NCA NewsWire / Gary Ramage

Mr Morrison also noted 760,000 jobs have returned to the jobs market since the initial shutdown in March, which has already caused the nation’s unemployment rate to rise to 6.8 per cent.

The subsidy scheme will start from Monday and will be available until the 100,000 quota is reached.

Employers will be able to subsidise apprentice wage by 50 per cent, or $7000 per quarter until September 30, 2021.

Employment Minister Michaelia Cash said the additional support is on top of the existing $2.8 billion trainee wage schemes which is already in place for trade-based professions.

“The Australian Government has already invested significantly to ensure that apprentices are retained where possible and supported to re-engage if they lose their job,” she said.

Ms Cash said apprenticeships and trainees are usually the first people stood down during a recession, noting the scheme would ensure around 52,000 employers would be able to keep 90,000 people on the books.

Ms Cash said apprenticeships and trainees are usually the first people stood down during a recession. Picture: NCA NewsWire / Gary Ramage

Labor shadow treasurer Jim Chalmers said the scheme falls short of restoring much needed funding to a sector that has been crippled for years.

“It doesn’t fully restore the billions of dollars which have been ripped out of training over the last seven years,” Dr Chalmers said.

“There is no vision for the future of training in this announcement, nothing for young people and how they grasp the opportunities of the recovery and make sure that we can teach and train people for technological and economic change.”

Shadow Treasurer Jim Chalmers. Picture: NCA NewsWire /Picture Gary Ramage

Apprenticeship network provider MEGT, said it welcomes the additional funding and “closes the loop” for financial support for the trainee sector.

MEGT general manager Paul Bennett said, the injection will enable employers to put on additional new workers.

“The supporting apprentices and trainee subsidy is helping employers to retain their current apprentices, but until now, there’s been limited support to encourage businesses to take on new apprentices,” Mr Bennett said.

“This initiative will go a long way towards ensuring new starter numbers climb in the right direction.”