Login
ISCOVER
Loan Market has posited that the broking sector is “best placed” to take advantage of the government’s extension of its nationwide trainee hiring incentive.
The federal government recently extended its Boosting Apprenticeship Commencements wage subsidy program, which it said would support businesses and group training organisations to hire new apprentices and trainees.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The program is designed to build a “pipeline” of skilled workers to support sustained economic recovery following the impacts of the coronavirus pandemic.
Through the subsidy, any business or group training organisation that engages an Australian apprentice between 5 October 2020 and 30 September 2021 may be eligible for a subsidy of 50 per cent of wages paid to new or recommencing apprentice or trainee for a 12-month period from the date of commencement, to a maximum of $7,000 per quarter.
There is no cap on the number of eligible trainees or apprentices, according to the government.
Commenting on the program, Loan Market executive director Andrea McNaughton said the extension of the scheme to 30 September would enable brokers to sustainably build their staff numbers and capacities, so they can service the “current surge” in customer enquiries, and “strengthen” their businesses for the long-term.
Ms McNaughton said the extension was a “game changer” for brokers, and said it has coincided with a period of growth for the broker sector.
She cited recent data from the Mortgage & Finance Association of Australia, which revealed a record December 2020 share of broker-originated loans (59.4 per cent), and the Australian Prudential Regulation Authority (APRA), which reported that third-party channel new bank loans written over the same quarter had risen by 28 per cent on the previous comparative period.
“Brokers are standouts to benefit from the federal government’s extension of the program,” Ms McNaughton said.
“Having the financial support to grow their business with more well-trained support staff is exactly what brokers need to service more clients, referrers and deliver more outcomes for customers amid best interests duty (BID) requirements and the demand of the record-low interest rate environment.”
Stating that Loan Market has onboarded more than 150 new customer service managers (CSM) since launching a recruitment drive in October, Ms McNaughton added that the major brokerage was expanding its existing support staff hiring, onboarding and training program.
She added that Loan Market assists with identifying pain points in brokers’ businesses so that the aggregator’s in-house recruitment team can recruit CSMs with the skills to match the business needs. CSMs then undergo a six-week lending support training program through the Loan Market Way, four weeks of peer-to-peer mentoring, and multi-program tips.
The major brokerage said that the grant was an opportunity for brokers to grow their businesses with support staff, and added that it has packaged up the details of the subsidy program for brokers to consider.
It added that it has also negotiated a group discount for Loan Market brokers with registered training organisations.
Ms McNaughton concluded that the scheme was an opportunity for staff to undertake a Certificate IV or III in business administration, which she said would provide “ongoing benefits to the brokers’ business”.
[Related: Bill to extend BID delayed again]
JOIN THE DISCUSSION