Hiring an apprentice? Here is the paperwork you need to know

Bringing on an apprentice is a great way to grow your business, especially in the trades. It does add some extra admin, but getting things set up properly from the start keeps you compliant and avoids issues later.

Key bookkeeping steps for new apprentices

Check award and pay rates
Apprentice pay depends on education level and training stage. Make sure your payroll is using the correct award rates to avoid underpayments.

Set up super correctly
If an employee is under 18, you only pay super if they work more than 30 hours in a week (this isn’t averaged). If they’re 18 or over, super applies regardless of hours. The current rate is 12% with no minimum earnings threshold.

Track training time
Apprentices split time between work and training (e.g. TAFE). Set up payroll to clearly record on the job and off the job hours. In Victoria, accurate records also support payroll tax exemptions for eligible apprentices under approved contracts via the State Revenue Office Victoria, if they are re-employed under the same training contract by a different employer.

WorkCover declarations
Apprentice wages must be included in WorkCover. Premiums depend on your industry and claims history, so accurate reporting matters.

Check available incentives
Incentives are available through the Australian Apprenticeships system, especially for priority trades. As rules and payments change, keep your paperwork organised and check current eligibility. Different states may have additional incentives - check with your local government for more information.

Getting this right early makes everything easier. You can focus on training your apprentice while your systems take care of the rest.

Thinking about hiring an apprentice but unsure about payroll? Get in touch with Churchill & Way - we can help you set it up properly from the first payslip.

This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided in relation to your own circumstances.