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 having your apprentices or trainees share some 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 (and then as an ongoing employee).

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.

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).

Find out how to choose a registered training organisation.

Learn how to compare training courses.

Funded apprenticeship training

Some pre-approved RTOs, known as Skills Assure Suppliers (SAS), 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 funded training through SAS in funded qualifications.

You can choose to pay full tuition fees through an unfunded RTO or reduced fees through a SAS.

Funded traineeship training

Trainees studying a funded certificate II or III traineeship are eligible to receive funded training through SAS if they are doing a traineeship identified in the Queensland Subsidised Training Skills List. This is a list (updated annually) of all the funded courses in high priority areas.

Search the Queensland Subsidised Training List for qualifications and skill sets that attract government funding.

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.

Find out about the government funding contribution for individuals declared in priority population groups.

Other incentives and subsidies

Find information on financial support for employers of apprentices and trainees.

If you are employing a construction apprentice, you may be eligible to receive a wage subsidy through the Small Business Apprenticeship Pilot Program.

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
• funding and allowances (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.

Contact your Provider to discuss eligibility for payments.

Australian Government financial support

You may be eligible for financial assistance from the Australian Government to help with hiring and training an apprentice or trainee.

Learn about wage subsidies, skills shortage payments and support for apprentices or trainees who are mature-aged or have a disability.

Queensland Government financial support

Funding for training

Allowances

Insurance discounts

Tax exemptions

When you get paid

Each financial support will have different payment conditions, amounts and frequencies. Check the programs you're eligible for to find specific details.

What we pay

An eligible employer can claim up to 4 payments as their eligible apprentice progresses through the block training periods. Payments will be made at quarterly milestones in the training.

Each payment provides a portion of apprentice wages for an average training period of 8 weeks per year, starting at a 50% subsidy of the typical first and second year wage and reducing to 25% in the third and fourth years.

^*The subsidy is based on the age of the apprentice at commencement of the apprenticeship.

^{^}The subsidy is based on a typical apprentice wage.

Registration form

If you are a small and family business employing an eligible apprentice, you can register for the wage subsidy through the online registration form.

Claim form

After registration is approved and a training milestone is achieved by the eligible apprentice, use the online claim form to request a wage subsidy payment.

More information

• Read the Small Business Apprenticeship Pilot Program funding guidelines.
• Refer to our frequently asked questions (FAQs).
• Phone us on 1800 210 210.
• Email us at sbapp@dtet.qld.gov.au.

Improved Completions is a joint initiative between the Australian Government and Queensland Government.

The Small Business Apprenticeship Pilot Program is a key election commitment of the Queensland Government and forms part of Queensland's contribution to the joint initiative.