Additional Identified Skills Shortage Payment Factsheet

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Additional Identified Skills

Shortage payment incentive


The Additional Identified Skills Shortage (AISS) payment is available to eligible apprentices
commencing from 1 July 2019 and their employers, in ten occupations experiencing national skills
shortages. The AISS payment will grow the number of apprentices and encourage more people to
take up an Australian Apprenticeship.

What payments are available?


Eligible Australian Apprentices in national skills shortage areas will receive $1,000 at the 12 month
point from commencement of their apprenticeship, and an additional $1,000 at completion of the
apprenticeship.

Eligible employers of Australian Apprentices will also receive $2,000 at the 12 month point from the
commencement of the apprenticeship and an additional $2,000 at completion of the apprenticeship.
These payments will be administered under the Australian Apprenticeships Incentives Program, and
are additional to any payments the apprentice or employer may be eligible for under existing
Australian Government programs including:

 Trade Support Loans, which provides income-contingent loans of up to $21,078 for eligible
apprentices to support them through their apprenticeship
 The Australian Apprenticeships Incentives Program, which provides standard incentives of
$4,000 over the life of an apprenticeship to eligible employers.

Who is eligible?
The AISS payment is available to eligible employers and apprentices in the following occupations:

Carpenters and Joiners Plasterers


Plumbers Bakers and Pastrycooks
Hairdressers Vehicle Painters
Airconditioning and Refrigeration Mechanics Wall and Floor Tilers
Bricklayers and Stonemasons Arborists

For an apprentice and their employer to be eligible for the AISS payment, the
apprentice must be new to the employer, commencing a Certificate III or IV level
qualification on or after 1 July 2019 leading to one of the occupations listed above.
Existing workers and their employers are not eligible for the AISS payment.
Employers will only be eligible to claim the AISS payment for apprentices that qualify as being
additional – that is, over and above the employer’s usual apprentice intake. This is intended to
encourage a genuine increase in the supply of Australian Apprenticeships to address skills shortages.
An Australian Apprentice who is new to their employer and undertaking a certificate III or IV
qualification leading to one of the listed occupations is eligible, regardless of if they are additional.

Detailed eligibility criteria are outlined in the Australian Apprenticeships Incentives Program
Guidelines.

How do I apply?
Australian Apprenticeship Support Network (AASN) providers are contracted by the Australian
Government to administer the AISS payments as part of the Australian Apprenticeships Incentives
Program. Your AASN provider will be able to determine eligibility for the AISS initiative and assist
with making a claim.

How are payments made?


AISS payments are made directly to the recipient’s nominated bank account.

What about paying tax?


Where the employer provides their Australian Business Number (ABN), the department will not
withhold tax from their AISS payments. AISS payments must be declared in accordance with the
usual arrangements for declaring income to the Australian Taxation Office.

Where an employer chooses not to provide an ABN they will be subject to the withholding
requirements of the Taxation Administration Act 1953 and 47 per cent of each payment will be
withheld and remitted to the Australian Taxation Office.

Where the apprentice completes a Tax File Number Declaration, their AISS payments will be subject
to a withholding rate of 21.0 per cent where the Australian Apprentice declares that their annual
income does not exceed $37,000 or 34.5 per cent where the Australian Apprentice declares that
their annual income exceeds $37,000.

Where the apprentice chooses not complete a Tax File Number Declaration, their payments will be
subject to a withholding rate of 47 per cent.

For further information on the tax treatment of AISS payments in relation to your individual
circumstances contact your accountant, tax adviser or the Australian Taxation Office on 13 28 61.

Where can I find out more?


For more information about Australian Apprenticeships visit your local AASN provider.

Information on apprentice workplace rights and conditions can be found on the Fair Work
Ombudsman website www.fairwork.gov.au.

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