New Program to Offset Costs of GTO Services for SMEs

As part of the Australian Apprenticeships Incentive System, the Australian Government has initiated the Group Training Reimbursement Program commencing 1 January 2025.

The Group Training Reimbursement Program has been created to offer financial support for small and medium enterprises (SMEs) using Group Training Organisation (GTO) services.  

What is the Group Training Reimbursement Program?

The Group Training Reimbursement Program aims to reimburse some or all of the costs of employing a GTO’s service.

Program details:

• The program is for SMEs that host an Australian Apprentice training towards a qualification and occupation listed on the Australian Apprenticeships Priority List (one placement per eligible SME)
• Capped at 400 placements with 20% of total placements reserved for women Australian apprentices
• Each eligible placement (apprentice) will merit a payment valued at $100 per week, and up to $5,200 over 52 weeks (GST inclusive). The payments will be made quarterly from commencement.  
• The incentive is paid to the GTO to reimburse businesses for a commensurate reduction in the usual GTO service fee, or charge-out rate, charged to an eligible SME

Is My Business Eligible for the Group Training Reimbursement Program?

To be eligible for reimbursement, your business must meet these requirements:

• Must be a small or medium enterprise (199 or fewer employees)
• SME must not have engaged an Australian Apprentice or hosted an Australian Apprentice through a GTO within the last two years
• Able to commence or recommence an Australian Apprentice through a registered Group Training Organisation like MIGAS Apprentices & Trainees
• Must host an Australian Apprentice training towards a qualification and occupation listed on the Australian Apprenticeships Priority List (one placement per eligible SME)
• Not accessing any other equivalent Commonwealth, state or territory government initiatives for the same Australian Apprenticeship placement (e.g., financial supports aimed at offsetting or reducing GTO service fees or charge-out rates) 

Benefits of Using a Group Training Organisation

Using a GTO like MIGAS when hiring an Australian Apprentice offers a number of key benefits, especially for small and medium-sized businesses.

GTOs were established 40 years ago by the Australian Government to help improve completion rates of apprentices and trainees. This is achieved through experienced guidance and administrative support offered by Group Training Organisations to both the apprentice/trainee AND the host company overseeing their on-the-job training. 

Key reasons to use a GTO instead of hiring an apprentice directly are:

Simplified administrative process: The GTO handles much of the paperwork and administrative tasks associated with Australian Apprenticeship, including full recruitment services, weekly payroll, and compliance with legal and regulatory requirements. This reduces the administrative burden on you as the host company.

Flexibility in employment arrangements: Host companies can have apprentices in their workplace for the duration they need them. If the workload decreases, the GTO can place the apprentice with another host, ensuring continuity for the apprentice's training.

Risk mitigation: The GTO takes on the role of the legal employer of the apprentice, thereby reducing the risk and responsibility for the host. This includes managing issues like workers' compensation, superannuation, and other employment-related responsibilities.

Ongoing support and mentorship: GTOs provide continuous support and mentorship to both the host company and the apprentice during their training. This includes resolving any issues that arise and ensuring that the training meets the required standards.

Learn more about the benefits of using a GTO.

How to Apply for the Group Training Reimbursement Program

As the GTO, MIGAS takes care of the application process for the reimbursement payment and organises the commensurate reduction in GTO service fees, so you can concentrate on training your apprentice.

If you've been thinking about engaging an apprentice or trainee to work in your business, MIGAS can help.

Contact us to discuss the Group Training Reimbursement Program, your requirements and to learn more about our recruitment and employment services.

About MIGAS

Since 1988, MIGAS Apprentices & Trainees has provided Group Training services in Queensland, New South Wales, Victoria, South Australia and Western Australia.

Our reason for being is to support Australian Apprentices and host companies who hire them through to completion.

We specialise in the following trade areas:

• Engineering Apprenticeships – mechanical and fabrication trades
• Electrical Apprenticeships – electrician and air conditioning trades
• Automotive Apprenticeships – light and heavy vehicle, and mobile plant trades
• Construction Apprenticeships – including carpentry and plumbing

We also provide trade traineeships including warehousing and logistics, and business administration.

If you’re thinking about hiring an apprentice or trainee for your business, contact us with your requirements.