Announcement date
29 March 2022
Link to announcement
https://ministers.dese.gov.au/robert/morrison-government-delivering-australias-workforce-future
Problem being addressed
Prior to the introduction of COVID-19 economic response measures (primarily the Boosting Apprenticeship Commencements (BAC) wage subsidy) to support the apprenticeship system, the number of Australian Apprentices commencing and completing an apprenticeship or traineeship had been in decline. This contributed to persistent skills shortages in priority occupations across the Australian economy. The pre-COVID-19 Australian Apprenticeship Incentives Program (AAIP) was not targeted to meet skill shortages, was difficult to navigate and understand, costs remained high and were increasing for both the employer and the apprentice and incentives did not focus on the decision maker. The Australian Apprenticeship incentives system must transition to a more fiscally sustainable model that better targets investment to support priority commencements and completions.
Proposal
The proposed changes to the Australian Apprenticeship incentives system are to provide support in two phases, from 1 July 2022 to 30 June 2024 in the form of a wage subsidy for employers of apprentices in priority occupations, a hiring incentive for employers of apprentices in non-priority occupations, and a direct training support payment to apprentices in priority occupations. In the second phase, from 1 July 2024 onwards, financial support will focus on priority occupations. A hiring incentive and a reduced direct training support payment will be provided for priority occupations only.
Assessed RIS outcome
Adequate
Regulatory burden
The Department of Education, Skills and Employment estimates that this measure will result in annual regulatory costs of $14.6 million on average.