Keynote Address - National Apprentice Employment Network 2025 National Conference

I want to begin by acknowledging the Traditional Custodians of the lands that we are meeting on today, the Turrbal and Jagera People.

I pay my respects to their elders past and present. I extend my respect to any First Nations people who are joining us today.

I’d like to acknowledge a few people in the room today:

National Apprentice Employment Network CEO Dianne Dayhew

WorldSkills Australia CEO Trevor Schwenke

Jobs and Skills Australia Deputy Commissioner Trevor Gauld

And our 2024 Skillaroos: Sari Conte, Harrison Field and Mitchell Rigney who are joining us this morning.

Thank you for the opportunity to be here.

It’s a privilege to be able to keep working as Australia’s Minister for Skills and Training, and to keep working with the people in this room, so we can build the skills to ensure that Australia, and all Australians, can navigate a rapidly changing world of work.

The last time I joined with many of you in this room - we’d just released the strategic review into apprentice incentives and announced the Government’s initial response to the recommendations.

I told you then there was more work to do and more conversations to be had, and – even with the small interruption of a Federal election – I can assure you we’ve been doing the work, and we’ve been focused.

We know the vocational education and training system has an important role to play in making sure the skills Australians have line up with the skills employers need.

When we came to government, we were faced with the worst skills shortage in half a century.

This didn’t come about by accident, nor through forces beyond our control – it was the second worst across the OECD. 

While Covid certainly had an impact, the skills shortage ran deeper – it reflected a decade of Commonwealth dysfunction on skills policy.

The policies of successive governments had cast TAFE, community providers, and the VET sector adrift from its purpose of national prosperity.

By May 2022, our skills and training system was suffering from terrible neglect, particularly in TAFEs, which had seen $3 billion in funding cuts.

A critical shortage of skills workers across key industries was exacerbated by years of neglect and a mismatch between training programs and labour market needs.

Apprenticeship commencements and completions had fallen dramatically, weakening one of the country’s most important vocational training pathways.

And our system was marked by fragmentation, with unclear coordination between federal and state governments, industry, and training providers.

A shortage of skills doesn’t just frustrate businesses – it holds them back. When it’s severe, it limits what they can produce and how well they can do it.

It also leaves workers behind, missing out on the opportunities to grow and thrive in their careers.

And for our nation it careers a barrier to progress, a barrier to building Australia’s Future.

Which is why we didn’t waste a day in responding to the challenge of turning this around: I pay tribute to my friend and predecessor Brendan O’Connor, for delivering the landmark National Skills Agreement.

A cooperative and far-reaching template to deliver the skills we need, through partnerships, built on principles. For the long term.

And as we look ahead to the Australia of the future, one thing is abundantly clear - skills are at the core of every workforce challenge we face.

Indeed, pretty much every national priority. As the NSA importantly recognises.

Whether it be supporting our transition to net zero, caring for our most vulnerable, or building the homes Australia needs – we continue to face skills shortages that affect us all.

An interesting thing about these areas of shortage – one that won’t surprise you in the room - the jobs we need to fill are primarily those supported by Vocational Education and Training pathways, in particular apprenticeships and traineeships.

Over those nine wasted years we saw trade apprenticeship completions freefall from over 57,000 in 2012, to 20,000 fewer in 2021.

And the fact is, the BAC and CAC wage subsidies compounded this problem.

So I’m thinking about how we encourage more young people to choose Vocational Education and Training for post high school study… And more people who aren’t so young too!

Jobs and Skills Australia’s workforce report shows in the next 10 years, 9 in 10 jobs will require post-secondary education.

Right now the split between university and VET is about fifty, thirty.  I want to see more people going into VET.

And - as someone who holds a law degree and a BA I can say this – how many lawyers or history majors does it take to build a house…

Between 2021 and 2024 there were more than 130 priority jobs in consistent shortage.

And - in New South Wales for example - more than 90 per cent of the 400 occupations on the critical skills shortage list require only vocational qualifications.

The task at hand for us is showing the next generation that VET and apprenticeships lead to good, secure jobs with purpose.

That’s what today is all about.

In its proper context – because this conversation is really about the link between individual aspirations… and our collective goals.

Like boosting productivity.

Flatlining productivity is one of the biggest challenges facing our nation.

Our Government inherited the largest quarterly fall in productivity in 45 years, so the Treasurer tasked the Productivity Commission to report into five key areas.

One of those areas is building a skilled workforce, and skills are - in my view - vital to each of the other four pillars:

• creating a more dynamic and resilient economy;  
• harnessing data and digital technology;
• delivering quality care more efficiently;
• and investing in cheaper, cleaner energy and the net zero transformation.

Right now there’s plenty of attention on this productivity puzzle - and rightly so - but let’s not overlook the importance of workforce participation.

Both as a response to these national challenges and, more fundamentally, as a marker as the sort of society we want to be.

A place where every role is open to everyone.

Most obviously, boosting women’s participation in the workforce is fundamental to addressing skills shortages building Australia’s future.

We are already taking important steps to breakdown the barriers that have prevented too many women from following certain career paths.

Apprenticeships provide a pathway for people to learn the skills they need for secure, well-paid work – earning while they learn.

And these pathways are in those areas where we need work to be done, and done well.

So it is absolutely critical to the nation’s productivity and prosperity that our apprenticeship system is working well.

That it’s more attractive to more people from a more diverse range of backgrounds.

That it supports apprentices to complete their training and go on to rewarding careers.

And a system that more employers engage with; one that invests in people, their businesses and our future.

It’s with all this in mind that we are continuing our work in relation to the Strategic Review of the Australian Apprenticeship Incentive System.

The Review made recommendations to support high-quality apprenticeships and ensure the Incentive System is effective and responsive to the needs of the labour market, apprentices and Government. 

As an initial response to the review findings, the Australian Government provided additional investment to:  

Maintain the 2025 Priority List and extend Australian Apprentice Training Support and Priority Hiring Incentive payment settings by six months, to provide consistency during the next phase of the consultation process.  

In just a few weeks, the Living Away from Home Allowance will double for apprentices who need to move away from home as part of undertaking their apprenticeship.

Also, the Disability Australian Apprentice Wage Support payment will double from 1 July 2025.

These steps are critical to help relieve the cost-of-living pressures that apprentices have felt so acutely.

It is also important that we provide ongoing support for apprentices, throughout their learning journey.

We have also announced measures to provide other targeted cost-of-living support and help apprentices complete their qualifications in high priority construction jobs.

Right now, a first-year carpentry apprentice earns about two-thirds of the minimum wage.

Some apprentices earn even less. That’s before you buy things like tools, safety gear, clothing and boots.

Many apprentices have said they could earn more stacking shelves at the supermarket and too many leave training because they can’t afford to stay.

Our Government wants to encourage more Australians to learn a trade.

That’s why we are going to provide more support for apprentices while they’re training with a $10,000 incentive.

This will help us deliver the workforce we need to build 1.2 million homes over the next 5 years.

Research from the Master Builders Association shows for every qualified tradie, 2.4 more homes will be built every year.

Coupled with current programs providing Free TAFE placements in construction, the Housing Construction Apprenticeship Program will encourage Australians to pick up the tools and become a tradie.

From the start of next month, eligible apprentices in high priority construction occupations, new apprentices will receive a payment of $2,000 at six, 12, 24, 36 months, and at completion of their apprenticeship.  

This new stream will work alongside our existing New Energy Apprenticeship Program, which has already seen around 9,000 apprentices receive incentives.

Together, they will help create the workforces we need to build the homes we need and help transition to net zero.

We know there is more to do to ensure our apprenticeship system serves employers, apprentices, and our communities long into the future.

Here in Brisbane this week, I am meeting with our nation’s skills Ministers.

We’ll discuss Australian priorities, with focus firmly on apprentices and how we can leverage tripartite relationships to make the system the best it can be

While we consult on the review and work with partners to identify priority areas -  something we are absolutely committed to doing is keeping the conversation open with you.

Because your experience and your knowledge are crucial for us to be able to make informed decisions on activities that will work on the ground.

We need a labour market that is fit for purpose, to grow the skilled workforce, build productivity and increase commencements in priority areas.

To do that – work is already underway to engage non-traditional cohorts into industries with skills shortages.

When we look workforces across the nation – those with shortages are often hugely skewed by gender.  So we’re doing something about it.

To that end, today I am excited to announce the Together We Rise project - to support the advanced manufacturing, clean energy and construction industries.

Before the election I announced the Albanese Government is supporting more women into clean energy and construction jobs through the Building Women’s Careers Program.

This program is delivering 20 partnership projects that address barriers for women entering, remaining and advancing in traditionally male-dominated industries.  The fact is, we need to get more women into these sectors.

Under the Building Women’s Careers program, more than $4 million has been awarded to deliver the Together We Rise project, in partnership with the National Apprentice Employment Network.

The project will work with Group Training Organisations to drive change in male-dominated trades like civil construction, clean energy, and advanced manufacturing, by addressing barriers for women.  

The National Apprentice Employment Network will partner with the Australian Workers Union, Bendigo Kangan Institute, ECA Training, HVTC, MEGT (Australia), and Women in Adult and Vocational Education to deliver the program.

Under the project, partner GTOs will work to identify and address structural barriers.

These insights will drive the development of an industry-wide Gender Equity Action Plan. This will enhance recruitment, retention and career progression opportunities for women across construction, clean energy, and advanced manufacturing sectors. 

Partner GTOs will be empowered to implement these strategies in collaboration with employers, ensuring meaningful and sustainable change at the local level. 

Inclusive Leadership Training will provide comprehensive training for leaders within partner GTOs to help them identify gender biases, lead effective change efforts and break through any resistance to gender equity initiatives.   

Robust peer networks will provide mentorship, support and community for female apprentices. 

Also, field officers and host employers will be equipped with practical tools to create positive learning environments, with training on preventing gender-based violence, fostering inclusive workplace cultures, and implementing flexible arrangements that support women. 

Lessons learnt will be shared with the GTO sector and its partners.  

The Strategic Review into apprenticeships found that apprentices employed through GTOs have higher completion rates than those employed directly by host businesses. 

Last year our Government announced a Group Training Organisation Reimbursement Program to support small to medium businesses host an Australian Apprentice.

Because as you know – small and medium sized businesses are the backbone of the Australian economy. 

Our reimbursement program supports training towards a qualification and occupation listed on the Australian Apprenticeships Priority List – of which there are many.

The GTO Reimbursement Program commenced on 1 January 2025 and operates on a demand-driven basis, capped at 400 reimbursement places nationally, with 20 per cent reserved for female apprentices.

And - I’m happy to announce to you here today that we’re on track to 400.

This program recognises the dual role that GTOs can play in supporting Australian Apprentices to complete their apprenticeship, while also supporting businesses - particularly those that aren’t familiar with Australian Apprentices - to successfully hire and train Australian Apprentices.

This is clear evidence, of a well thought out and properly balanced policy at work. 

I mentioned before the BAC and CAC programs. Wage subsidies which saw workers paid less to, for example, be enrolled at Grill’d’s ‘hamburger university’.

These programs cost taxpayers millions of dollars, and there’s little to show for it when you look at training outcomes for individuals, or meeting our skills shortages.

Instead, we are taking a clear-eyed approach.

We know what we want to do – fix the skills crisis, by enabling more Australians to get the skills they need to get good jobs we need doing.

To do that, we’ll leave no stone unturned.

Back to productivity and participation - touching briefly on Free TAFE – as we look ahead to the Treasurer’s Productivity Summit, let’s not forget that the 2019 Productivity Commission’s Shifting the Dial Report identified cost as a key barrier to training.

Free TAFE is addressing this in a meaningful way.

There have been around 600,000 enrolments in Free TAFE, since the program started a little over two years ago.

On top of the $1.5 billion investment in Free TAFE, I have announced we’re funding an additional 20,000 Free Construction places, to further boost the workforce pipeline to the construction industry.

That investment includes 5,000 new pre-apprenticeship places, because we know giving students a taste of what working in an industry is like - before making the commitment to become an apprentice – is really helpful.

The Albanese Government made Free TAFE a permanent feature of the national VET system – in fact – we locked it into law.

Importantly, we know Free TAFE is supporting the people who really need it:

• 192,200 enrolments by young people (24 and under)
• 139,900 enrolments by job seekers
• 44,400 enrolments by people with disability
• 34,100 enrolments by First Nations people
• And more than 354,000 enrolments by women. 

Our plan for a Future Made in Australia is clear: we want Australian workers to make more things here. That includes building more homes and supporting our transition to net zero.

To be able to achieve our ambitious goals, we must confront head on the skills shortages our industries are experiencing.

Apprenticeships are a piece of that puzzle. It is one that we must get right.

Already, we have taken action to address the most urgent needs, to help address the cost-of-living pressures that are deterring people from starting an apprenticeship.

We have started a pilot program that is providing a reimbursement for apprentice GTO places for small and medium businesses.

One element is common to all these initiatives we are driving as a government. That is partnership. Working in partnership across government, industry, and training organisations.

This will deliver the skills we need.

Finally, thank you all for the time and commitment you each make to ensure that our apprenticeship system is the best it can be, now and into the future.

ENDS