Announcement date
14 May 2024
Link to announcements
Australian Skills Guarantee - Department of Employment and Workplace Relations, Australian Government (dewr.gov.au)
Budget Paper No.2
Problem being addressed
Australia is experiencing persistent and critical skills shortages in the construction and information technology sectors with gender segregation contributing to the shortages.
Proposal
The Skills Guarantee is an election commitment under the Australian Government's Secure Australian Jobs Plan that will introduce national targets for apprentices, trainees, and ICT cadets working on eligible major Australian Government funded building and construction and maintenance services (construction) and information and community technology (ICT) projects valued at $10 million or more, from 1 July 2024.
Assessed Impact Analysis outcome
Good practice
Assessment comments
The analysis in the IA is good quality overall. The IA addresses the seven IA questions and follows an appropriate policy development process commensurate with the significance of the problem and magnitude of the proposed intervention. In particular, the OIA notes the IA contains strong discussion on the policy options and consultation process.
To be considered ‘exemplary’ under the Guide, the IA would have benefitted from:
- Describing the barriers or constraints to government action and the actions to overcome them.
- Providing further justification for the capacity of government to intervene and further detail on the government’s objectives in responding to the policy problems identified.
- Providing further detail on the Department’s evaluation plan for the proposed policy with respect to the government’s objectives.
Regulatory burden
The Department of Employment and Workplace Relations estimates these measures will result in an increase in regulatory costs of $0.600-$1.424 million per year, averaged over ten years.