House of Representatives

Trade Support Loans Amendment Bill 2023

Student Loans (Overseas Debtors Replacement Levy) Amendment Bill 2023

Student Loans (Overseas Debtors Replacement Levy) Amendment Act 2023

Explanatory Memorandum

(Circulated by the authority of the Minister for Skills and Training, the Hon Brendan O'Connor MP)

Attachment C: Comparison of incentives - AAIP to IAA

Table 14: Comparison of AAIP and IAA

Previous incentive (AAIP) How streamlined/simplified (IAA)
NSNL, 'Priority AAIP', and 'other' categories Merged into a single category for the base incentives ($1,500 commencement, $2,500 completion). Employers are eligible as long as their apprentice is new. If their apprentice is in an NSNL or Priority occupation, they are eligible even if the apprentice is an existing employee.
Eligibility for the base incentives Extended to Diploma and Advanced Diploma apprentices, not just those undertaking a Certificate III or IV.

Payment amounts for employers of part-time apprentices Increased to match the payments for full-time apprentices, eliminating the distinction between full-time and part-time across all categories.
Rural and Regional Skills Shortage commencement incentive and the ASbA commencement and retention incentives Merged into a single 'Target Groups' category.

The Rural and Regional Skills Shortage commencement incentive will reduce from $1,000 to $750, but a $750 completion incentive will be added, a net gain of $500 for this cohort.
The $750 ASbA retention incentive will change to a completion incentive, to encourage employers to retain their school-aged apprentices beyond the 12 weeks required to claim the retention incentive. ASbAs undertaking a Certificate II will no longer be eligible for this incentive, however they will still be able to claim the Certificate II Target Groups incentives.

Nominated Equity Groups commencement incentive Increased from $1,250 to $1,500, and split into a $750 commencement incentive and a $750 completion incentive.
GTO Certificate II completion incentive Reduced from $1,000 to $750 but there will be no net loss in payments for GTOs due to the Target Groups incentives increasing by $250.
Support for employers of ASbAs undertaking a Certificate II Additional $1,500 commencement incentive introduced, to ensure employers of ASbAs undertaking a Certificate II are not disadvantaged by no longer being able to claim both the Nominated Equity Groups commencement incentive and the ASbA commencement and retention incentives.
Support for Adult Australian Apprentices (SAAA) incentive Unchanged.
Mature Aged Worker commencement and completion incentives Unchanged.
Declared Drought Area commencement ($1,500) and completion ($1,500) incentives Discontinued. While the Incentive is ongoing, in June 2014 the Department of Agriculture ceased issuing Exceptional Circumstances Certificates. As such it is not possible for an employer to meet the eligibility criteria to claim this incentive.

Data for this Incentive is only available from 2004. From 2004 to date, 741 apprentices have attracted payments for their employers, totalling $1.615M.

Minimum total incentives $4,000 (Certificate III and above), $1,250 (Certificate II).

Maximum total incentives $10,500 (Certificate III and above), $3,750 (Certificate II).

Minimum total incentives:

$4,000 (Certificate III and above) - unchanged

$1,500 (Certificate II) - increase by $250

Maximum total incentives:

$11,000 (Certificate III and above) - increase by $500

$3,750 (Certificate II) - unchanged


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