The Business Council welcomes the continuation of employer and apprentice incentives in the energy and housing construction sectors under the Key Apprenticeship Program, however concerns remain that a reduction in incentives will reduce overall apprenticeship numbers.
Business Council Chief Executive Bran Black said there were concerns that reduced support for other priority sectors including care, broader construction, and digital, risks undermining workforce development in industries already experiencing critical shortages.
“One in three occupations are in shortage, so we need more support, not less, for the apprentices and employers building Australia’s future workforce.” Mr Black said.
Hiring an apprentice is a significant commitment, especially for small and medium employers who carry the full cost and training risk during the least-productive period of an apprentice’s journey.
The Business Council urges policymakers to ensure incentive settings are used to deliver the skills Australia needs.
“The evidence is clear: when wage subsidies fall, apprenticeship commencements drop; when support increases, commencements and completions rise, strengthening the long-term skills pipeline,” Mr Black said.
“Australia’s largest businesses achieve completion rates close to 90 per cent, far above the 50 per cent national average. Backing these high-performing employers to expand will lift commencements, completions and the skills Australia needs.”