New incentive for apprentices

Recent changes by the Federal Government to apprenticeship funding are expected to have a positive impact on building and construction in the South West, but could reduce the number of mature aged apprentices.

The changes are an attempt by the Government to better target incentives to employers and put more emphasis on full-time jobs in areas most needed for the economy — especially those in the building and construction industry.

Under the reforms, some apprentices will no longer be able to attract certain incentives and employers of part-time apprentices and workers who recommence an apprentice not on the National Skills Needs List will have their incentives reduced.

For skills on the that List, the Kickstart Bonus will be increased if the apprentice starts between December 1 and February 28, 2013.

Apprentice and Traineeship Company chief executive officer Stan Liaros said the Kickstart initiative was a ‘‘real positive’’ and could encourage reluctant employers to take on an apprentice.

Mr Liaros said the skills most in need in the South West were in the electrical, plumbing and carpentry trades.

However, he said any reduction in funding for apprentices was a negative and the changes would impact on the take up rate of mature-aged apprentices.

Under the new laws, employers of mature-aged apprentices would receive a $4000 lump sum at the end of the first year of the apprentice rather than a weekly allowance.

MEGT Australian Apprenticeships Centre Southern WA area manager Suzana White said the Kickstart Bonus increase was good news for small and medium-sized employers in the South West.

‘‘A small or medium-sized employer may be eligible to attract the Apprentice Kickstart initiative payment of $3350 plus the $4000 standard incentive — plus an extra $3000 if the apprentice is over 25 years of age,’’ Mrs White said.

‘‘If you add this to the Construction Training Fund support, it means the small and medium sized building and construction industry employer incentives could be as much as $19,350 per apprentice.’’

For more information on the changes, visit www.australianapprentice ships.gov.au.