GTO Reimbursement Program: A New Opportunity for SMEs
Unlock Financial Support and Grow Your Team
Starting from 1 January 2025, small and medium enterprises (SMEs) in Australia can access a new initiative aimed at easing the financial burden of employing Australian Apprentices. The Group Training Organisation (GTO) Reimbursement Program is part of the Australian Apprenticeships Incentive System, designed to help SMEs by reimbursing some or all of the costs associated with Group Training Organisation services. This is a fantastic opportunity for businesses looking to engage apprentices but may have been hesitant due to the associated costs. (Download fact sheet.)
What is a Group Training Organisation (GTO)?
GTOs are specialised organisations that recruit, employ, and support Australian Apprentices. They provide essential services like administrative support, recruitment, and pastoral care, which are invaluable to SMEs that may not have the resources or capacity to manage these responsibilities on their own. GTOs employ apprentices under a formal training contract and place them with host employers (SMEs) who provide the on-the-job training required for the apprenticeship.
These services can be particularly beneficial for smaller businesses, where managing apprenticeships directly might not be practical. By partnering with a GTO, businesses can ensure that their apprentices receive high-quality, continuous support while also benefiting from the expertise and services offered by the GTO.
Why Engage a GTO?
For many SMEs, engaging with a GTO removes several barriers to taking on an Australian Apprentice. SMEs often lack the capacity to manage recruitment, provide consistent on-the-job training, and offer the support necessary for an apprentice to succeed. A GTO provides these services on behalf of the SME, ensuring that apprentices receive the support they need, and businesses don’t face the administrative burden that can come with managing an apprenticeship program independently.
Additionally, partnering with a GTO offers flexibility for businesses that may not have the ongoing capacity to retain apprentices for the full duration of their training. The GTO can step in to ensure continuity and high standards for the apprentice’s development, benefiting both the business and the apprentice. See How Group Training Organisations can help you.
How Does the GTO Reimbursement Program Work?
The GTO Reimbursement Program is specifically designed to help SMEs that have not directly engaged or hosted an Australian Apprentice through a GTO in the last two years. If your business qualifies, you can access a reimbursement of $100 per week, up to a total of $5,200 (inclusive of GST) over the span of 52 weeks. This payment is designed to reduce the usual placement fees charged by GTOs, making it easier for SMEs to take on apprentices and benefit from the valuable services provided by these organisations.
This program directly alleviates some of the financial concerns businesses may have when considering taking on apprentices. With the reimbursement, it becomes more financially viable for SMEs to engage in apprenticeships, helping foster the development of skilled workers while simultaneously benefiting from the support and expertise of the GTO.
Eligibility and Next Steps
To determine if your business is eligible for the GTO Reimbursement Program, your Apprentice Connect Australia Provider will assess the suitability of the GTO. The GTO must meet specific criteria and comply with national standards to qualify for the program. It’s essential that the GTO is listed on the Group Training National Register and adheres to the National Standards for GTOs.
The reimbursement is available to SMEs that have not hosted an apprentice in the last two years in a qualification listed on the Australian Apprenticeships Priority List. Learn more by consulting the Australian Apprenticeships Incentive System Guidelines or reach out to your Apprentice Connect Australia Provider for assistance.
Partner with a GTO like 1300apprentice!
The GTO Reimbursement Program presents a unique opportunity for SMEs to access high-quality apprentice training while easing the financial burden associated with it. By partnering with a GTO, businesses can ensure that they are providing valuable opportunities to apprentices while receiving the administrative and financial support they need to succeed. Partnering with a GTO offers:
✅ Recruitment and administrative support
✅ Continuous training and care for apprentices
✅ Reduced operational burden for SMEs
See why its a good idea to employ apprentices with 1300apprentice
To find a provider near you, visit www.apprenticeships.gov.au.
