Yahoo Finance ScoMo to pay for half of apprentices' wages in $1.2 billion plan
Rolling coverage: For more Yahoo Finance stories on the 2020 Federal Budget, visit here.
Prime Minister Scott Morrison has announced the Government will pay half the wages of 100,000 apprentices or trainee workers to encourage businesses to make new hires.
The $1.2 billion package will be available from today (Monday 5 October) and pay for half of the apprentice’s new wages in the first year.
The wage subsidy is also designed to patch up the high levels of unemployment or underemployment among younger Australians in particular and prevent future skill shortages.
Also read: Extra 10,000 Aussies eligible for first home buyer scheme
Also read: Federal Budget 2020-21: What we know so far
“Apprenticeships are an important pathway to get young people into jobs and to ensure there is a skills pipeline to meet the future needs of employers,” 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.”
Employers will be able to receive up to $7,000 per quarter, and is available until the 100,000 limit is reached.
The measure is an extension of the Supporting Apprentices and Trainees scheme, which only allows for apprentices who were training on 1 July and leaves no guarantee for school leavers at the end of this year.
The $1.2 billion plan will be announced as part of tomorrow’s 2020-21 Federal Budget, which is expected to boost employment and contain extensions or a new form of the JobKeeper wage subsidy as well as further income support.
Treasurer Josh Frydenberg also announced over the weekend that another 10,000 would be eligible for the First Home Loan Deposit Scheme, allowing for first-time home buyers to purchase a property with just a 5 per cent deposit.
Other packages that have been confirmed to be in the budget are a JobMaker Digital Plan, extra spending on manufacturing and construction, and a further $305 million towards childcare.
Here’s what else we know so far.
–with wires
Rolling coverage: For more Yahoo Finance stories on the 2020 Federal Budget, visit here.
Make your money work with Yahoo Finance’s daily newsletter. Sign up here and stay on top of the latest money, economy, property and work news.
Follow Yahoo Finance Australia on Facebook, Twitter, Instagram and LinkedIn.
