This year’s federal budget needs to make meaningful and long-term commitments to fund apprentice and trainee recruitment, retention and support initiatives. That’s the advice from the Independent Tertiary Education Council Australia (ITECA), the peak body representing independent providers in the skills training, higher education, and international education sectors.
“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% 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,” said Troy Williams, ITECA Chief Executive.
With apprenticeship and traineeship numbers having grown in recent years, ITECA is calling for the Australian Government to commit to long-term incentives to ensure that employers are able to keep apprentices and trainees on throughout the course of their training.
“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.
Consistent with ITECA’s established reputation for member-driven policy leadership, the independent skills training sector has provided recommendations to the Australian Government as part of the consultations to support the development of this year’s federal budget.
“ITECA members have advised the Australian Government that a subsidy of 30% 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,” Mr Williams said.
The emphasis on the completion incentive is a critical component of the support mechanism, according to the ITECA membership.
“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,” Mr Williams said.
To provide employers and the skills training sector with confidence, ITECA members recommend that the new arrangements be implemented over the medium-term.
“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,” Mr Williams said.
Government data referenced in the ITECA State Of The Sector Report shows that over the past four years, the number of apprentices and trainees with independent Registered Training Organisations (RTOs) has grown by more than 60,000. The report shows that there were 182,220 apprentices and trainees with independent providers, that’s 52.2% of all apprentices and trainees in the skills system.
