Member Alerts & Updates

 

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MEMBER ALERT

24 January 2025

Release of Strategic Review of the Australian Apprenticeship Incentive System and initial government response

 

 


The federal government has today released the Strategic Review of the Australian Apprenticeship Incentive System undertaken by Dr Iain Ross and Ms Lisa Paul, which was delivered to the government in September.

The report, 'Skills for tomorrow: Shaping the future of Australian apprenticeships'. makes 34 recommendations to address a wide range of issues across the apprenticeship system -- significantly broader than incentives alone.

The good news is that group training has emerged in a strong position, with an extremely favourable assessment of the work of GTOs, and several recommendations that, if adopted, would see an expansion of GTO activities.

This includes:

  • a pilot program to utilise high-performing GTOs to equip small and medium employers (SMEs) to deliver a better experience for apprentices, including through training on meeting employer obligations.
  • the establishment of an innovation fund to engage industry, states and territories in piloting innovative approaches that address key challenges in the apprenticeship system and build on best-practice initiatives including those of group training.
  • expanding successful programs delivered by large employers and group training organisations that provide mentoring and other workplace supports for apprentices.
  • a pilot program to subsidise SMEs engaging women apprentices over the age of 21 in the first and second years of apprenticeships, in high-priority trade occupations, leveraging high-performing GTOs.
  • a competitive government process to appoint GTOs in geographical regions with substantial renewable energy activities and requires all projects within that region to engage apprentices through that GTO.

The review notes: "Apprentices employed through GTOs tend to have completion rates 5 to 9 percentage points higher than those directly employed by SME host employers, and 2 to 5 percentage points higher than apprentices with large employers."

 

 

The review also recommends:

  • the government commissions an independent review of the design, efficacy and performance of the Apprentice Connect Australia Providers and look at opportunities to streamline delivery of apprenticeship services between Apprentice Connect Australia Providers and GTOs.
  • the government develops a transparent, user-focused framework that details the performance and quality of providers in the apprenticeship system, and include performance data and outcomes on Apprentice Connect Australia Providers, registered training organisations and group training organisations.
  • a revision of the National Standards for Group Training Organisations, in consultation with Jobs and Skills Councils.

 


Initial Government Response - $10k financial incentive for construction apprentices

The federal government has announced $627 million over four years  from 2025-26 to introduce a payment of $10,000 to apprentices in high priority construction occupations.

Apprentices will receive $2,000 at six, 12, 24, 36 months, and at completion.

Specific occupations to be targeted will be identified in consultation with Jobs and Skills Australia and the Jobs and Skills Councils prior to commencement on 1 July 2025. However, it is likely to include occupations such as electricians, carpenters, plumbers and bricklayers.

The announcement will be a key part of Prime Minister Anthony Albanese's addresses to the National Press Club today.

The Government is expected to announce an increase in the apprentice living away from home allowance from the current rate of $77.17 per week.


What's next?

In a briefing earlier today, DEWR has set out the process of consideration of the review findings.

This will entail  a series of stakeholder consultations and workshops up until July, followed by government consideration starting in September, and implementation due from December 2025.


See the Strategic Review of the Australian Apprenticeship Incentive System 
 

The report and several supporting fact sheets are available at the following link: https://www.dewr.gov.au/australian-apprenticeships/strategic-review-australian-apprenticeship-incentive-system

 

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