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Costs, benefits and incentives
Taking on an apprentice or trainee can be a cost-effective, rewarding way to build and retain your workforce. But it can also be a risk, committing up to 4 years of wages and effort on a young worker who may leave as soon as they are qualified.
There are considerable costs when you employ an apprentice or trainee. Your biggest costs will be training and supervision. However, there is also financial support available from the government to help with these costs.
This guide outlines the main risks and rewards of apprenticeships and traineeships from the employer's perspective, the costs you will incur and a summary of all the incentives, subsidies and rebates for eligible employers.
Risks and rewards of employing apprentices and trainees
Taking on an apprentice or trainee can be a cost-effective, rewarding way to increase and modernise your workforce. But it can also be a risk, committing to a young worker who is uncertain about their future.
Here is a summary of the main benefits and risks of taking on apprentices or trainees so that you can estimate a ‘return on investment’ for your workplace.
Benefits
Training wages
Because apprentices and trainees are still gaining experience and learning on the job, they are paid significantly less than qualified workers. However, research shows that apprentice wages are more or less equal to their productivity.
Personal reward
Supporting young people to learn and simultaneously building up your industry workforce is a rewarding process.
Routine tasks
By getting your apprentices or trainees to do more of the routine and unskilled tasks, you can free up your more experienced staff to carry out specialised, complex tasks.
New ideas
Apprentices usually bring more recent training, techniques and ideas with them. This can help your business find easier, faster and cheaper ways of doing things.
Risks
Supervision
The highest cost to employers is supervision, as apprentice and trainee wages are more or less equal to their productivity. The amount of required supervision peaks in the first year and tapers off towards the final years, reflecting the apprentice’s or trainee's growth in experience, skill and maturity (if young at the outset).
The main way to offset the high cost of supervision in the early years is for your apprentice or trainee to complete their training with you. Your initial investment (supervision and training) will yield returns (less supervision and more production) towards the end of the apprenticeship or traineeship. Therefore, the higher the quality of your supervision and mentoring, as well as workplace culture, the more likely you will retain your apprentice or trainee until completion.
Training
Apprentices and trainees need workplace training as well as formal, off-the-job training. You are not obliged to pay for formal training, even though many employers do, but you are required to pay for the time spent attending this training. The costs of training can be reduced through government incentives and subsidies.
Commitment
Once you commit to having an apprentice you must keep them on for a minimum period and for a minimum number of working hours.
Injury
Because apprentices and trainees are often young, immature and inexperienced, they are more vulnerable to workplace injuries than their older, experienced colleagues. Employers can reduce these risks through quality work place induction, supervision, site familiarisation and use of protective equipment.
Costs to train your apprentice or trainee
The award or agreement that applies to your business will outline your obligations to pay for your apprentice's or trainee's training. If you are unsure, contact the Fair Work Ombudsman.
How much training costs
You will need to talk to your registered training organisation (RTO) about the costs of the training. RTOs set tuition prices, so prices vary and it pays to shop around.
Training costs may include the following:
- course fees
- student fees
- safety or testing equipment
- textbooks
- tutoring
- travel
- assessment
- printing (manuals, industry standards).
Funded apprenticeship training
Some pre-approved RTOs, or 'Skills Assure Suppliers', are funded by us to provide training for all apprenticeships, and some traineeships, at a reduced cost.
All eligible apprentices (full-time, part-time and school-based), and all school-based trainees, are eligible to receive subsidised training from these pre-approved RTOs.
You can choose to pay full tuition fees through an unfunded RTO or reduced fees through an pre-approved RTO.
Funded traineeship training
Trainees studying a Certificate II or III traineeship are eligible to receive funded training from these pre-approved RTOs if they are doing a traineeship identified in the Priority Skills List. This is a list (updated annually) of all the subsidised courses in high priority areas.
Priority Skills List
Search for qualifications and skill sets that attract a government subsidy under the VET investment budget.
Funded training for priority population groups
Funded training is also provided for apprentices and trainees who belong to priority groups such as Aboriginal and Torres Strait Islander people, people from non-English speaking background, people with disability, impairment or long-term conditions.
Priority population groups
Find out about the government funding contribution for individuals declared in these groups.
Other incentives and subsidies
Employer incentives and subsidies for apprenticeships and traineeships
When you employ an apprentice or trainee in Queensland, you may be eligible for financial support to reduce the cost of training and supervision throughout the apprenticeship or traineeship.
Financial support comes in many forms:
- one-off incentive payments
- subsidies (wages, training)
- discounts (workers' compensation)
- exemptions (payroll tax).
Support payments do not cover the full cost of employing an apprentice or trainee. But, depending on your circumstances, you may be eligible for more than one kind of payment.
Australian Government incentives
You may be eligible for financial assistance from the Australian Government to help with hiring and training an apprentice or trainee.
Australian Government apprentice and trainee incentives
Learn about wage subsidies, skills shortage payments and support for apprentices or trainees who are mature-aged or have a disability.
Queensland Government incentives
One-off payments
Government pays for | Eligibility criteria | Program name |
---|---|---|
Support payment of up to $20,000 | Employers who recruit eligible unemployed jobseekers in regional Queensland |
Training subsidies
Government pays for | Eligibility criteria | Program name |
---|---|---|
A contribution to the cost of training for priority apprenticeship and traineeship qualifications. These subsidies are paid directly to the eligible Skills Assure Supplier | Registered apprentices and trainees, who are under 25 and studying a priority apprenticeship or traineeship qualification. Only available through pre-approved training organisations | |
Registered apprentices and trainees, who are doing a high priority apprenticeship or traineeship. Only available through pre-approved training organisations | ||
Prior to 1 July 2024:
After 1 July 2024:
| Registered apprentices and trainees must meet specific criteria including travelling more than 100km return to attend off-the-job training with their closest training organisation | Travel and accommodation allowance |
Insurance discounts
Government pays for | Eligibility criteria | Program name |
---|---|---|
Discount on workers' compensation premium | Apprentices only, not trainees | Apprentice Discount (WorkCover Queensland) |
Tax exemptions
Government pays for | Eligibility criteria | Program name |
---|---|---|
50% rebate on payroll taxes, from 1 July 2016 | Apprentice and trainee wages that are exempt from payroll tax, from the 2016–17 to 2022–23 financial years |
When you get paid
Each incentive or subsidy will have different payment conditions, amounts and frequencies. Check the programs you're eligible for to find specific details.
© The State of Queensland 1995–2024
- Last reviewed: 08 Sep 2021
- Last updated: 08 Sep 2021