Apprenticeship extension – everything you need to know

Friday 9 Apr 2021

In August last year, the New Zealand Government announced the Apprenticeship Boost scheme. Due to end in April 2021, the subsidy has since been extended until August and is available for employers of new and existing apprentices.

“Given an apprenticeship can take four years to complete, there is a long pipeline for skills. This initiative needs to be in place permanently to make sure businesses have confidence to continue building the skills pipeline and help address the skill shortages New Zealand faced before Covid” BusinessNZ Chief Executive Kirk Hope says.

Who can get it?

You can get Apprenticeship Boost if your apprentices are:

• actively training through a transitional Industry Training Organisation (ITO) or a provider
• training for a New Zealand Apprenticeship or Managed Apprenticeship recognised by the Tertiary Education Commission
• in their first 24 months of training (this includes any previous apprenticeship enrolment, including any other apprenticeships, with the same transitional ITO or provider).

Apprenticeship Boost can be paid for an apprentice who is self-employed if they’re employed or contracted by you. You need to apply for your apprentice, and you need to have a training agreement between yourself, your apprentice and your TEC approved transitional ITO or provider. If you’re self-employed, contact the company overseeing your apprenticeship. They’ll need to apply on your behalf.

You can’t get Apprenticeship Boost for your apprentice if you’re:

• a State Sector employer
• already getting another wage subsidy from Work and Income for this apprentice (eg, Flexi-wage, the COVID-19 Wage Subsidy or Mana in Mahi)
• already getting a payment from the Ministry of Business, Innovation and Employment for this apprentice (eg, a wage subsidy from the Māori Trades and Training Fund or a Regional Apprenticeships Initiative).

Payment rates You can get Apprenticeship Boost for a maximum of 20 months per apprentice, and it’s paid in advance. How much you can get depends on whether your apprentice is in their first or second year of training:

• First year apprentices can get $1,000 a month
• Second year apprentices can get $500 a month.

These amounts don’t include GST. If you’re GST registered, you’ll be paid the amount plus GST. You must pay your apprentice at least the minimum or training wage.

For more information and useful links, click here.

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