MEDIA RELEASE
24 January 2025
Apprentice employers welcome incentive payments and landmark findings of strategic review
The National Apprentice Employment Network (NAEN) has today welcomed the federal government’s commitment to deliver substantial apprentice incentive payments in key sectors of the workforce, as a means of boost housing construction.The $10,000 payments to individual apprentices in construction and new energy represent the government’s initial response to the landmark Strategic Review of the Australian Apprenticeship Incentive System, released today.
“These payments in priority areas of the economy will help attract and retain apprentices by boosting their incomes and helping to develop the skilled workforce that is need to meet the nation’s housing targets,” the Chief Executive Officer of NAEN, Dianne Dayhew, said.
The $627 million commitment over four years will see eligible apprentices receive staged payments of $2,000 at six, 12, 24 and 36 months, and on completion.
NAEN also welcomes the release of the wide-ranging Strategic Review of the Australian Apprenticeship Incentive System, undertaken by Dr Iain Ross and Ms Lisa Paul.
The report makes 34 recommendations to address a wide range of issues across the apprenticeship system – significantly broader than incentives, alone.
The review recognises the important contribution of the group training network and makes a number of recommendations to better utilise its expertise to achieve improved apprentice outcomes and higher completions.
It specifically acknowledges the superior performance of Group Training Organisations (GTOs) in delivering quality apprenticeships: “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.”
It also recommends:
- a pilot program to utilise high-performing GTOs to equip small and medium employers (SMEs) that have not taken on an apprentice in the last two years.
- the establishment of an innovation fund to engage industry, states and territories in piloting innovative approaches to apprenticeships utilising best practice 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, utilising high-performing GTOs.
- An initiative to appoint GTOs to engage apprentices in geographical regions with substantial renewable energy activities
The review also recommends an independent review of the current Apprentice Connect Australia Provider arrangement, including opportunities to streamline delivery of apprenticeship services with GTOs.
Ms Dayhew said that the review has focussed a wide lens across the breadth of the apprenticeship system and clearly come to the conclusion that there is broad support for making greater use of high performing GTOs.
“It is clearer than ever that the expertise and knowledge built up by group training over its 40-year history can be better utilised in partnership with industry, unions and enterprises to achieve better apprentice results.
“It’s not just higher completion rates, but also the mentoring and support that is provided by a national network of field officers that can assist women, First Nations people and others in starting their careers,” Ms Dayhew said.
To better leverage the expertise of group training, the review recommends the development of a transparent, user-focused framework that details the performance and quality of providers in the apprenticeship system, including Apprentice Connect Australia Providers, registered training organisations and group training organisations.
It also recommends that industry bodies, unions and GTOs work together to attract more women into male-dominated trades through pre-apprenticeships and ‘try a trade’ programs, and also work with their employers to establish safe workplaces and industry-specific mentoring.
NAEN looks forward to working with the government over coming months to bring to fruition many of the reforms that have been advanced in this far-reaching report.
Media Contact: Bob Bowden, Foresight Communications Ph 0412 753 298 bbowden@bowmac.com.au.
