Apprenticeships need to be a key focus of the 2023 budget

Apprenticeships have been shown to be one of the best ways to prepare candidates for entering the workforce, yet they’re often underutilised.

The government has made progress in promoting apprenticeships by adding 34 roles to the Australian Apprenticeship Priority List, but according to the Independent Tertiary Education Council Australia (ITECA), there needs to be a greater focus on apprenticeship recruitment in this year’s federal budget.

“A decade ago, the then Australian government slashed apprentice and trainee incentives directed to both commencement and completion in critical skill areas for the economy. This saw recruitment levels crash by around 59 per cent by 2019 on 2012 levels, despite efforts of some states and territories. This decline was only arrested with the introduction of COVID-era employment subsidies,” explained ITECA chief executive Troy Williams.

ITECA is calling on the government to allocate more funding to the training and recruitment of apprentices. Retention and support of those undertaking apprenticeships will help to bolster the workforce.

“The duration of an apprenticeship is often four years from commencement to completion. Government incentives that last for a year or two do not provide potential apprentices, trainees, employers or training organisations with the confidence to engage meaningfully and long-term in the ways needed,” Mr Williams said.

“Completion incentives” are critical to the attraction and retention of apprentices, said ITECA. The council recommends that changes should be implemented over the next few years.

Mr Williams continued: “ITECA members have advised the Australian government that a subsidy of 30 per cent be provided in the first year of apprenticeships and traineeships, without limitation by any list. Further, ITECA members have also advised that the completion incentives be reinstated at a minimum of $5,000 to the apprentice or trainee on the completion of their training.”

“Without the completion incentive, the initial incentives are a disservice to employers in the first instance, as well as to the apprentices and trainee. We need the Australian government to support apprentices, trainees and employers for the duration of their training.”

He added: “As they consider taking on an apprentice and trainee, employers need confidence that the policy settings of today will provide, as a minimum, the support available over the term of the apprenticeship and traineeship.”

ITECA was previously discussed by HR Leader for the work done to help establish Jobs and Skills Australia, which aimed to help improve workplace productivity by addressing skills shortages through training, leading to wage increases.