Why hire an apprentice or trainee?

Hiring an apprentice or trainee means investing in the future of your workforce. You’ll gain a motivated employee with a growing set of practical, up-to-the-minute skills who can add real value to your business. 

You may also qualify for a range of subsidies and incentives designed to make apprentice and trainee employment even more worthwhile for employers.

What are the benefits to your business?

Apprentices and trainees can set your business up for success, with valuable new skills and knowledge, plus increased productivity and competitiveness. Here’s how:

Bring in new skills and learnings

Training in-house is a great way to safeguard against future skills shortages. Apprentices and trainees also gain fresh skills and learnings that can be a useful resource for other employees, keeping your business current with new approaches and industry best practice. 

Increase competitiveness

Special pay rates and incentives make taking on an apprentice or trainee a cost-effective way of recruiting new talent. They acknowledge the training status of your apprentice or trainee, while also including provisions for that training. Over time, apprentices and trainees become more productive, and you’ll also benefit from their growing set of up-to-the-minute skills and industry insights.

Train existing staff to meet business needs

Apprentices and trainees needn’t be newcomers to your business. You can use apprenticeship or traineeship programs to upskill existing workers, ensuring your staff is qualified and productive – as well as challenged and enriched.

Give opportunities to learn and earn 

Offering an apprenticeship or traineeship is also a meaningful way of assisting someone who’s looking to start or re-start their career in your industry. They can train, study and earn an income, all while contributing to your annual turnover.

Subsidies and incentives

Financial supports are designed to give a boost to employers who take on apprentices and trainees. It’s worth noting that subsidies and incentives come with responsibilities, and should not be your main aim.

Incentives for employers and wage subsidy support 

The Australian Apprenticeships Incentive Scheme provides support to a number of employers through wage subsidies or hiring incentives for apprentices and trainees. Head to Australian Apprenticeships to see if you qualify for this support. Regional and remote employers may gain a 5 per cent boost on top of regular benefits in the scheme. Businesses employing apprentices and trainees with disability may also be eligible for additional support.

Payroll tax exemptions

Payroll tax exemptions are designed to help businesses out when hiring certain apprentices and trainees. Properly exempt wages do not need to be included in your monthly payroll tax return.

Exemptions may apply to:

  • Re-employed apprentices or trainees. These are people who started their apprenticeship or traineeship with another employer, stopped before completing their approved training contract, and are now continuing training and employment with you. Head here for details on this exemption.
  • Apprentices or trainees hired through Group Training Organisations (GTOs). If your organisation is an approved GTO employing apprentices and trainees who are signed up to a training contract, their wages will generally be exempt from payroll tax. See the State Revenue Office for details.