Apprentice Commencements and Australia’s Skills ShortageStudent of the Month

Apprentice Commencements and Australia’s Skills ShortageStudent of the Month

Since 2012, apprentice commencements have fallen, with numbers crashing from 376,800 before bottoming out at 134,800 in 2020. On 5 October 2020, the Boosting Apprenticeship Commencements (BAC) was implemented. The BAC is one incentive in a suite of employer and apprentice payments offered by the government through the Australian Apprenticeships Incentives Program.

Data released by the National Centre for Vocational Education Research (NCVER) on 27 January 2022 indicates a reversal in the long-term decline in apprenticeship commencements. The data shows that training commencements increased by 60% Australia wide and 36% in Western Australia (the highest in Australia) for the June quarter 2021, compared to June 2020, with 38,400 people in-training (59% in trades and 41% in non-trades).

Skills Minister Stuart Robert says the scheme has worked in getting young people into jobs and keeping them there. Apprenticeships are a great pathway for younger workers to secure their first full time job, however apprentices do require a longer-term investment in skills development.

The BAC scheme has been implemented at a cost of $2.7 billion, where a business (or GTO) may be eligible for up to 50% subsidy of the gross wages paid to a new or recommencing apprentice or trainee for 12 months (to a maximum of $7.000 per quarter). The subsidy is not available to any apprentice receiving any other form of government subsidy such as JobKeeper, Supporting Apprentices and Trainees or the JobMaker Hiring Credit.

After 12 months, employers are eligible to transfer to the Completing Apprenticeship Commencements wage subsidy for the second and third years of the apprenticeship. During the second year, employers will receive 10% wage subsidy up to a maximum of $1,500 per quarter and 5% in the third year, to a maximum of $750 per quarter.

The huge increase in the number of people starting an apprenticeship has not solved Australia’s shortage of skilled tradespeople with thousands of vacancies for new starters remaining unfilled. Gary Workman, executive director of the Apprenticeship Employment Network, said he had about 1000 positions for apprentices available but was struggling to find applicants, a situation which he expects to worsen in coming months. Yet, at the end of 2020, one in three young Australians were unemployed or under-employed.

The BAC is due to end on 31 March 2022. The BAC gives any business or GTO a subsidy that engages an Australian Apprentice undertaking a Certificate II or higher and has a training contract formally approved by the state training authority.

To apply for the subsidy in Perth, you can contact MEGT (Australia), The BUSY Group Ltd or the Chambers Apprenticeship Support Australia Pty Ltd.