The Australian Bureau of Statistics’ Labour Force Projections 1999-2016 reports that the ageing of the existing workforce and the reduction in new entrants/school leavers means that more reliance is going to be placed on older workers in the foreseeable future. Another way of looking at the picture is that there are estimations that 85% of all workforce growth will be supplied by people aged 45 and over by 2012, up from 32% in 1992. Why most people 45 plus may not be looking at commencing an apprenticeship there is a significant group of people between 25 & 35 who are.
In July 2007 the Australian Government introduced a $13 000 wage subsidy for Mid-Career Apprentices and its aim is to support apprentices who are 30 and over, who commence an apprenticeship. The initiative is called the Support for Mid-Career Apprentices Payment and provides fortnightly payments to subsidies the apprenticeship wages for up to a total of $13 000 over the first 2 years of an apprenticeship.
Eligibility is based on the following criteria;
• Apprentice is ages 30 or over
• The apprentice is commencing an Australian Apprenticeship at Certificate III level
• The Certificate III level qualification is in a trade experiencing skill shortages
The declared skill shortage trades for automotive are;
• Motor Mechanic
• Automotive Electrician
• Panel Beater
• Vehicle Painter
• Vehicle Body Maker
• Vehicle Trimmer
These trade areas are also eligible for the following apprentice focused incentives
- • $1000 Commonwealth Trade Learning Scholarships – paid in $500 lots over 2 years for apprentices employed in business with less than 500 employees
- • $2000 Apprenticeship Wage Top-Up – paid in 4 instalments of $500 over the first 2 years of the apprenticeship, the apprentice must be under 30 to qualify
- • $1000 Apprenticeship Training (Fee) Vouchers – the vouchers cover course fees of up to $500 over the first and second year of the apprenticeship to apprentices who commenced after 1 July 2007
- • $800 Tools for Your Trade - $800 for the purchase of tools and alibility is dependent on completing the first 3 months of the apprenticeship.
As always there is the $4000 employer incentive for taking on an apprentice and the exemption for Workers Compensation - for new or renewed policies commencing on or after 31 December 2006, the wages paid to an apprentice are not used to assess the business’ premium. When taking all of this into consideration taking on a mature aged apprentice may be a viable option for your business.
A report produced by the Swinburne University in Melbourne has found that:
- • There is no significant difference between the performance of a mature-age worker and a younger worker;
- • Mature-age workers use experience and skills to offset a decline in performance due to aging;
- • Mature-age workers are just as flexible, if not more, than younger workers with regard to working conditions;
- • Older workers are interested in undertaking training and furthering their careers;
- • If learning programs are tailored to the age, knowledge and experience of mature-age workers then learning is just as effective, and no more expensive than for young workers.
Mature age workers are also flexible with working hours and conditions, and despite what perceptions have suggested they are not adverse to change management. Experience also allows older workers to have a reduced risk of accident related injuries in the workplace compared to younger workers.
When taking into account the apprenticeship wages for a mature aged apprentice and combining that with what they bring to your business from an experience perspective and then taking into account the incentives available to both your business and the apprentice themselves, looking at employing a mature aged apprentice could be good option.
The award wage rates for mature aged apprentices are;
Year Adult rate ($)
1 507.30
2 543.82
3 560.50
4 582.92
This covers corporations that were members as at 26-3-06. Different award coverage applies to members that have joined on and from 27-3-06. For more wage information please contact MTA Employment Relations Department on 02 9213 4290.
So working it all out for an apprentice who commences a motor mechanic apprenticeship at 32 years of age having completed no previous qualifications the costs and incentives would be as follows;
• Wage per fortnight - $997.12 (employers are able to pay a higher rate of pay should they choose to)
• Wage subsidy per fortnight $300 (for the first year and $200 for the second year)
Total = $1297.12
Plus in the first year $500 for course fees + $500 trade learning scholarship tax fee and then in the second year the same again.
The $800 tools are provided once only in the first year.
Employer Incentive = $4000 paid in 2 instalments $1500 at commencement and $2500 at completion.
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