The Boosting Apprentice Commencements (BAC) and Completing Apprentice Commencements programs were introduced in 2020 to support businesses to take on an apprenticeship or traineeship during the COVID-19 pandemic. The programs provided a 50% wage subsidy over 12 months from the date of commencement, and smaller wage subsidies in later years of training. 

This evaluation sought to answer questions covering: 

• apprentice commencements and completions
• apprentice and employer characteristics
• cost effectiveness. 

This evaluation took a mixed-methods approach. The evaluation team analysed administrative data, built a time-series event study econometric model of quarterly commencements and built a probit econometric model of an individual’s likelihood of continuing their training. The existing literature on wage subsidies for Australian Apprenticeships was also reviewed and selected stakeholders were interviewed.

There are 7 major lessons for the design of future policies outlined in the report. The program was implemented under tight timeframes during a time of distinct economic uncertainty, and so many of these lessons would not have been apparent at the time it was first designed and implemented.

Key findings

• Overall, the BAC program had a large positive effect on apprenticeship and traineeship commencements.
• While the program achieved its purpose of increasing commencements, there were also some issues. The program was associated with a 7% increase in the cancellation rate for non-trade occupations compared to the historical rates.
• While the program achieved its intended outcome of increasing commencements, it did so at a significant cost. As of 31 March 2024, over $7.5 billion in BAC and CAC wage subsidies had been paid. The full cost of these interventions is currently unknown as CAC payments will continue beyond June 2025.