A new apprentice or trainee will bring vitality, a fresh approach, and boundless enthusiasm. Plus, thanks to the introduction of the State Government Employer Incentive Scheme, your new recruit will bring a base payment of up to $8,500.
Who is eligible to access the incentive?
The incentive is available to employers who employ an apprentice or new entrant trainee and who have lodged the training contract for registration on or after 1 July 2019.
Employers who are eligible to access the incentive are:
- employers of new entrant trainees;
- employers of apprentices below the payroll tax threshold (currently at $1,000,000 [one million] per annum);
- group training organisations - see this fact sheet about the incentive for GTOs;
- Local Government and Government trading enterprises (GTEs) (see approved list of eligible Local Government Agencies and GTE); and
- not for profit organisations.
Employers who are not eligible for the incentive are:
- employers of existing worker trainees;
- state and Australian Government agencies (see list of ineligible State and Commonwealth Agencies);
- employers of apprentices and trainees who live outside of Western Australia; and
- employers who are eligible to receive incentive payments for their apprentice or trainee from the Construction Training Fund (CTF).
Employers may be eligible for a partial payment if:
- they are employing apprentices and their liability for payroll tax changes during the training contract; or
- their eligibility to receive a Construction Training Fund incentive changes during the period of the training contract.
Employers who have terminated or cancelled a training contract with a trainee, and then subsequently entered into a new training contract with the same trainee, may still be eligible for the Employer Incentive if:
- the trainee had been assessed as a ‘new entrant’ for the original training contract;
- the original training contract had been assessed as eligible for the Employer Incentive; and
- all other eligibility requirements outlined above still apply.
Please note that if an employer has received incentive payments for the trainee under the first training contract then they will be eligible for future milestone payments for the second training contract, on a pro-rata basis. Repayment of incentives will be required where the employer seems to be manipulating the incentive as evidenced by their retrenchment and recruitment patterns.
How much will an eligible employer receive?
Base incentive payments
Incentive rates are subject to change, however the following tables provide an indicative amount of the rates as of 1 July 2019.
Apprenticeships
| Nominal term* | Commencement payment ($)** | Mid-point payment ($) | Completion payment ($) | Total ($) |
|---|---|---|---|---|
| 24 months | 1,700.00 | 1,275.00 | 1,275.00 | 4,250.00 |
| 36 months | 2,550.00 | 1,923.50 | 1,912.50 | 6,375.00 |
| 42 months | 2,975.00 | 2,231.25 | 2,231.25 | 7.437.50 |
| 48 months | 3,400.00 | 2,550.00 | 2,550.00 | 8.500.00 |
* The nominal term of each apprenticeship and traineeship is listed on the Department's Register of Class A and B qualifications (the public register). Part time apprentices will receive the same incentive payment as full time apprentices, with payments spread over a longer period.
** Please note that commencement payments are made six months after the commencement of the apprenticeship.
Traineeships*
| Nominal term** | Commencement payment ($)*** | Completion payment ($) | Total ($) |
|---|---|---|---|
| 6 months | 0.00 | 1,062.50 | 1,062.5 |
| 9 months | 0.00 | 1,593.75 | 1,593.75 |
| 12 months | 1,062.50 | 1,062.50 | 2.125.00 |
| 24 months**** | 2,125.00 | 2,125.00 | 4,250.00 |
* Please note that there are no mid-point incentive payments for trainees.
** The full time nominal term as stated on the Department's Register of Class A and B qualifications (the public register). Part time trainees will receive the same incentive payment as full time trainees, with payments spread over a longer period.
*** Please note that commencement payments are made six months after the commencement of the traineeship.
**** Traineeships of more than 24 months duration will attract an incentive payment at the rate of $2,125 per year.
Further information
- The incentive amount is based on the nominal term of the apprenticeship or traineeship.
- The nominal term of each apprenticeship and traineeship is listed on the Department's Register of Class A and B qualifications (the public register).
- To be eligible for the incentive, a training contract must be registered with the Department of Training and Workforce Development Apprenticeship Office.
- Eligible employers can receive an additional loading payment where the apprenticeship/traineeship maps to an occupation on the State priority occupation list. Search the list of apprenticeships that attract this loading.
To find out more about incentive payments in please view our Employer incentive — Incentive payments fact sheet and the Incentive terms and conditions.
When can employers claim incentive payments?
Employers can claim incentive payments after the achievement of each of the following milestones.
Apprenticeships
- At the commencement of the apprenticeship;
- at the mid-point of the nominal duration of an apprenticeship; and
- on completion of the apprenticeship.
Traineeships
- At the commencement of the traineeship; and
- on completion of the traineeship.
Further information is available in our Employer incentive – Incentive payments fact sheet, also the Employer incentive – How to claim fact sheet, and the Incentive terms and conditions.
How do employers apply to access the incentive?
Applications to access the incentive must be made through the Western Australian Apprenticeships Management System (WAAMS) online client portal.
- This Overview of employer incentive WAAMS functionality will assist employers in getting started.
- This Guide to WAAMS user access levels steps you through how to set up users to administrate the incentive.
In order to manage incentive payments in WAAMS, a financial administrator for your organisation will need to be appointed. This Guide to appointing a financial administrator steps you through how to set this up.
Find out more in the Incentive terms and conditions.
Fact sheets and instructional videos
- Employer incentive – Incentive payments
- Employer incentive – How to claim
- Employer incentive - Submitting a claim in WAAMS
- Employer incentive - Eligible Local Government agencies
- Employer incentive - Eligible Government trading enterprises
- Employer incentive - Non-eligible Western Australian State Government agencies
- Employer incentive - Non-eligible Commonwealth Government agencies
- Employer incentive - Terms and conditions
- Employer incentive - Summary of terms and conditions
- Employer Incentive instructional video - View entitlements
- Employer Incentive instructional video - Submit a claim
- Employer Incentive instructional video - Upload a training plan
Frequently asked questions
Group training organisations (GTOs) registered with the Department of Training and Workforce Development may be eligible to claim under the Jobs and Skills WA Employer Incentive.
GTOs may be eligible to receive employer incentives regardless of their payroll tax status for apprentices and trainees who are hosted out, and the incentive must be passed onto host employers on a pro-rata basis. GTOs directly indenturing an apprentice and liable for payroll tax will be out of scope of the employer incentive.
Employers, including GTOs, receiving a Construction Training Fund (CTF) incentive for an apprentice or trainee will also be out of scope of the employer incentive . Employers may be eligible for a partial payment if their eligibility to receive CTF incentives changes during the period of the training contract.
An existing worker is a person employed with the same employer continuously for more than three months full time or 12 months casual or part time, or a combination of both, immediately prior to the commencement date of the training contract. In calculating the full time equivalent period of employment, the following exclusions apply where the apprentice/trainee was:
- employed while attending secondary school as a student; or
- has had a break in service with the employer of six months or more in the employment relationship prior to commencement of the apprenticeship/traineeship.
Please note, any worker not considered an existing worker is deemed to be a new entrant.
New entrant trainees who progress to a subsequent traineeship with the same employer within three months after the successful completion of the previous traineeship can maintain their new entrant status if they articulate to a higher level qualification.
Yes, employers of existing worker apprentices may be eligible for the incentive. The new entrant requirement is only applicable for trainees in relation to employer incentives.
Government trading enterprises such as Western Power and the Water Corporation may be eligible to receive the incentive for their apprentices and new entrant trainees.
Government Trading Enterprises are different from other State Government agencies as they are primarily self-financing and operate on a commercial basis, in critical industry areas employing trade workers.
Does the $100,000 salary cap still apply to new entrant trainees?
No, the $100,000 salary cap applied to new entrant trainees under the previous payroll tax scheme.
Under the Jobs and Skills WA Employer Incentive, an employer of all new entrant trainees may be eligible regardless of their salary.
The payroll tax exemption for new entrant trainees was removed from 1 July 2019. Employers of new entrant trainees may be eligible for the employer incentive (subject to meeting other eligibility criteria), regardless of the employer’s payroll tax status.
Payroll tax exemption for apprentices will continue beyond 30 June 2019, however as has always been the case, only employers with an annual payroll above $1 million may able to benefit from this exemption. The incentive seeks to provide comparable financial assistance to smaller employers. Therefore, only employers not liable for payroll tax (an annual payroll below $1 million) may be eligible for the incentive in respect of their apprentices.
CTF supports employers to reduce the cost of employing an apprentice or trainee in a range of construction occupations in WA. Employers eligible for a CTF incentive for an apprentice or trainee are not eligible to claim a Jobs and Skills WA Employer Incentive for that apprentice or trainee.
Your organisation can declare if it intends to engage with CTF for your apprentices and trainees. This declaration will be used to assess whether your organisation is in scope for the Jobs and Skills WA Employer Incentive.
Please refer to the CTF declaration fact sheet for further information.
Further information
If you have a query that has not been covered by the information provided here, please call 13 19 54 or via email to employerincentive@dtwd.wa.gov.au.