National Apprentice Employment Network Conference

I begin by acknowledging the Kaurna people, the Traditional Owners of the lands on which we gather.

I pay my respects to Elders past and present, and all Aboriginal and Torres Strait Islander people here today.

I want to start with a simple statement:

Skills are at the core of every major challenge we face.

Transitioning to Net Zero, building more houses, caring for older Australians and teaching our youngest.

Building a Future Made in Australia and ensuring Australian businesses are protected from cyber attacks.

Our vocational education and training tertiary sector is at the heart of it all.

For too long, the focus of governments – including Labor ones – has been unbalanced.

Higher education over vocational training.

Steering young people towards university and away from skilled trade professions.

But choosing an apprenticeship or traineeship should not be considered secondary to university courses.

The work is skilled.

The wages are good.

Employment is secure and career prospects promising.

And there isn’t a comparable student debt to shoulder.

Over the next decade, 9 out of 10 new jobs will require post-secondary qualifications.

And almost half will come through VET pathways.

This underlines our country’s reliance on universities and the VET sector.

Our future prosperity relies on the success of both.

In our first two years in office – we’ve worked hard to highlight this shared importance.

And we’ve worked hard to repair the damage done to the VET sector by the previous government.

The sector we inherited was neglected and fractured.

And it was accompanied by the biggest skills shortage in more than 50 years.

State and Territory Governments were frustrated by federal government inertia and indifference on skills.

Since coming to office, we’ve been rebuilding fractured relationships, standing up critical institutions and delivering skills in priority sectors.

We’ve invested billions in the VET sector – and elevated the portfolio.

For the first time, a Minister solely responsible for Skills and Training is sitting at the Cabinet table.

Late last year, we struck the first National Skills Agreement in more than a decade, which will see $30 billion injected into the VET sector over the next five-years.

The Agreement is the first to embed shared stewardship to provide leadership on skills for shared national priorities.

Under that model, Ministers have set priorities including supporting the transformation to Net Zero, sustaining our essential care services and delivering housing supply, while at the same time progressing gender equality and Closing the Gap for First Nations people.

The landmark Agreement targets specific areas of reform and action to be taken by all jurisdictions.

For example, it provides $650 million across States and Territories to establish up to 20 nationally networked TAFE Centres of Excellence.

The Centres will be leaders in their field, bringing together TAFEs, universities and industry in genuine partnership to deliver skilled workforces in areas we need them most.

So far, we’ve announced a Centre dedicated to advancing clean energy skills in WA, an EV Centre of Excellence in Canberra, and a Care and Support Centre of Excellence in Cairns.

And earlier this morning, I announced an Early Childhood Education and Care Centre of Excellence here in Adelaide.

These Centres are built on the principle of collaboration and sharing what works.

Sharing what works is also key when it comes to apprenticeships.

Earlier this year I appointed Iain Ross and Lisa Paul to conduct a Strategic Review into the Apprenticeships Incentive System. 

Their review will inform how we can better support apprentices and employers.

It will also provide essential guidance on building a sustainable, long-term approach that supports apprentices through to completion, encourages employers to take on apprentices and represents value for money for taxpayers.

I’m sure many of you in this room have engaged with Iain and Lisa and their team over the first half of this year to help develop more effective apprenticeship support. 

In contrast, the Coalition spent nearly $8 billion on a COVID wage subsidy paid directly to employers without a dollar going to apprentices.

It gave big businesses cover to drive down wages, with millions going to the bottom line of large companies.

Taxpayers paying 50% of the wages for employers that enrolled students in online short courses such as “using social media tools” and “enhanced customer service” did nothing to address the skills shortage in priority areas.

Eight billion dollars, with little to show for it.

And the Coalition left a funding cliff in their final budget, cutting support for apprentices and their employers to below pre-pandemic levels.

In comparison, we’re working with industry and experts to develop a sustainable and effective support system.

To avoid the funding cliff I just mentioned, we’ve invested an additional $265 million to increase financial support and provide stability to apprentices and employers while we await the Review recommendations.

As of 1 July, priority apprentices are now eligible for an extra $2,000 and their employers an extra $1,000, for a total of $5,000 each.

The equal payments recognise the partnership that is required to ensure apprentices have the best chance of completing their training.

And for apprentices with exposure to clean energy, they’re eligible for up to $10,000 under our expanded New Energy Apprenticeships Program.

We’ve also launched new measures to support apprentices, employers and Group Training Organisations.

We’re investing $1.8 million to encourage small and medium enterprises to take on apprentices through GTOs in key sectors, including clean energy, construction and manufacturing.

Eligible SMEs that take on an apprentice in a priority occupation through a GTO, will be reimbursed $1,500 per year over the life of the apprenticeship.

We know that apprentices placed through GTOs are more likely to complete, especially those from underrepresented groups:

• For women the completion rate is 8.5% higher than direct employment
• For First Nations apprentices it’s 4.3% higher.
• For people with disability it’s 3% higher, and
• For apprentices in remote areas the completion rate is 6.6% higher.

Mentoring and in-training help is also important, so we’re improving non-financial support.

Our strengthened model – which started July 1 - will help build a more diverse workforce.

It includes an enhanced assessment at the start of an apprenticeship, making it easier for apprentices and their employers to engage with each other.

And there’s a greater focus on apprentices who face additional barriers to completion, ensuring they can access targeted mentoring and personalised assistance.

I recently spoke to our new Apprentice Connect Australia providers and reinforced the expectation that they be highly responsive to the needs of apprentices and their employers.

As I just mentioned, apprentices placed with GTOs have a better chance of completing, largely due to the personalised support offered by Group Training.

My expectation is that ACA providers will also maintain regular contact with apprentices, particularly in the early stages of training when they are most likely to drop out.

We are also leveraging government investment in major projects to help train the next generation of skilled workers through the Australian Skills Guarantee, which came into effect on July 1.

The Guarantee will ensure one in 10 workers on major Commonwealth-funded construction and Information and Communications Technology projects is an apprentice or trainee.

It also includes targets for women apprentices to drive long-term sustainable change and reduce gender disparity in apprenticeship numbers.

The Skills Guarantee uses the government’s significant purchasing power to drive real change in industries that are vital to the growth of the labour force, our economy and a Future Made in Australia.

Our government is focused on investing in programs which support apprenticeships and their employers, so more Australians can receive quality training and earn while they learn.

More effective, strategic investment in skills and training is critical if we are to realise our ambitious goals.

I want to acknowledge the commitment of the National Apprentice Employment Network and everyone here to helping develop our future workforce.

The Albanese Government looks forward to continuing to improve support and outcomes for apprentices.

Thank you.