Skillset welcomes $2.5 billion skills and apprentice support package

The package will also provide training for school leavers and job seekers, with a further $500 million allocated from states and territories and an extension of the existing wage subsidy program.

Skillset chief executive officer Craig Randazzo said the announcement will ensure people are supported through the COVID-19 pandemic and to support the future prosperity in the region.

"It's clear the intention of the federal government is to keep people in jobs and also stimulate the labour market with new initiatives," he said.

"We anticipate this package will only increase employment and training opportunities throughout the region."

The program will also include a $1.5 billion extension of the existing wage support subsidy until March 2021.

This will cover medium sized businesses with less than 200 employees who had an apprentice or trainee employed on or before 1 July 2020.

Currently, the subsidy is available to small businesses with less than 20 employees.

For eligible employers, the wage subsidy for apprentices and trainees covers 50 per cent of wages and up to $7,000 per quarter.

"The existing subsidy program will broaden the eligibility allowing more businesses to access the scheme helping them to retain their current apprentices and trainees in challenging times," Mr Randazzo said.