However, it will be up to individual businesses as to how they spend the money.

Riverina MP Michael McCormack and federal Skills Minister Michaelia Cash visited Wagga’s G&M Cochrane & Sons auto mechanics on Wednesday to announce the $60 million policy.

Senator Cash said eligible employers across regional Australia would be able to claim payments based on apprentice award wages.

“It is a $60 million investment by the government to create 1630 new apprenticeship places. It is via a trial for a wage subsidy,” she said.

“It is all about incentivising employers in rural and regional communities to create a new apprenticeship, employ a local and create a job.

“The wage subsidy will ensure that the employer is financially able to take on a new apprentice.”

The subsidy will provide 75 per cent of wages for a first year apprentice, which will then drop to 50 per cent and then 25 per cent for the third year.

G&M Cochrane first-year apprentice mechanic Brendan Learoyd, age 17, said it would help a lot of apprentices in Wagga if employers were to use the payments to increase wages.

“In other trades, apprentices get more money than me but work the same hours,” he said.

“People have ditched a trade and gone for another trade just because of the money.

“I’m living at home right now so I pay a bit for board but if I was by myself I would have no money to deal with stuff like that.”

In response to questions about whether the government should focus on lifting apprentice wages, Mr McCormack said the policy would help more young people get their “foot in the door”.

“We’re giving young apprentices the opportunity to get a job. First and foremost, you’ve got to start somewhere,” he said.

“I know that when I started out as a cadet journalist, the wages weren’t that high but you work your way up.”

The ABS rate of unemployed aged 15 to 24 has been falling in the Riverina. 

However, at 13.9 per cent, the Riverina’s youth unemployment is still higher than two years ago and above the regional NSW average.

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