Apprentice incentive falls short says education group

A $10,000 incentive payment to attract apprentices into the residential construction and clean energy sectors is a positive step for those industries but falls short of addressing the significant skills shortages felt by businesses across the Australian economy, a peak group says. The Independent Tertiary Education Council Australia (ITECA) said the initiative to be launched by Prime Minister Anthony Albanese today ignored critical industries that were equally in need of skilled workers. According to ITECA, the government’s investment of $627 million in this initiative may encourage some new apprenticeships and help retention in those two industry sectors, but it is unlikely to reverse the sharp decline in apprentice recruitment seen in recent years. “Supporting apprentices in the construction and energy sectors is important, but this measure fails to address the needs of the small businesses in other parts of the economy," ITECA chief executive Troy Williams said. "It also lets down employers looking to take on an apprentice. Without meaningful support for employers, the pipeline of skilled workers will continue to remain under threat.” ITECA is calling on the Australian Government to broaden its support and address the systemic skills shortages facing businesses across the entire economy. The body argues that measures to support small businesses that employ apprentices and greater collaboration with independent RTOs are essential to ensuring Australia’s workforce is equipped to meet future demand. Master Builders Australia chief executive officer Denita Wawn said labour shortages were the biggest handbrake on fixing the housing crisis. "Around 50 per cent of all apprentices do not complete their training - the new staged payments approach will hopefully see the rate of completions increase," she said. “Builders would like to see this payment expanded to other areas of the building and construction industry that are also facing chronic shortages and crying out for more apprentices. Without roads, rail, sewerage and water we can’t build more homes for Aussies. “We are disappointed that the high costs associated with hiring and training and apprentices has not been recognised as yet. 98 per cent of businesses in building and construction are small and they are doing it tough. "Master Builders continues to call for a robust incentive system that supports employers and minimises the risk with taking on an apprentice who may or may not complete their training.” From July 1, eligible apprentices in the residential construction sector will receive $10,000 in incentive payments, on top of their wages under the new Key Apprentices Program. The new payment will be staged at six, 12, 24, 36 months and upon completion.

Apprentice incentive falls short says education group

Industry Queensland

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