The Victorian Chamber of Commerce and Industry is desperately concerned at the 38 per cent decline in apprenticeship and traineeship commencements in a four-month period across 2024-25 compared to the same period in 2023-24. As a leading Apprentice Connect Provider, the Chamber has seen that the drop in new apprenticeship commencements is most pronounced in carpentry and plumbing. These areas that are essential in building a skilled workforce, transitioning to net zero and meeting housing targets.
Additionally, there has been a significant drop in commercial cookery, retail, hospitality, hairdressing and engineering fabrication apprenticeship and traineeship commencements.
Apprenticeships and traineeships remain one of the primary pathways to developing highly skilled and technical occupations, and as Australia invests $524 billion in planned infrastructure projects, these skills will be urgently needed to power the economy forward.
We cannot achieve our infrastructure development requirements without skilled workers and that starts with Apprentices.
There can be no doubt that one of the key factors in the decline is the reduction to employer incentives.
Victorian Chamber research highlights the significant financial burden that employers face in taking on apprentices. With many employers paying above-award wages, nearly 40 per cent of Victorian Chamber members reported that incentives of $12,000 or more would be required to encourage them to hire more apprentices.
The Victorian Chamber is proposing a two-tiered incentive scheme aimed at alleviating these financial burdens and addressing the skilled workforce crisis. The proposed scheme includes:
· For small businesses: Incentives of $15,000 per apprentice, structured over the apprenticeship period to include an initial lump sum of 35 per cent of the incentive at commencement, followed by 25 per cent at the end of the first year, 25 per cent at completion, with progress payments of five per cent annually in years two to four.
· For medium-sized businesses: Incentives of $10,000-$12,000 per apprentice, similarly structured.
· For large businesses: Targeted project-specific funding to support apprenticeships within their supply chains, reinforcing the critical role large employers play in mentoring and supporting apprentices.
The Victorian Chamber asserts that a structured and industry-centric apprenticeship system is essential to developing a sustainable and skilled workforce. Restoring and expanding incentives for businesses, especially small and medium enterprises, is the first step toward reversing the current trajectory and positioning Australia’s workforce for future demands.
To be attributed to Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra:
“The decline of apprenticeship starters from last year to now, is significant and a massive concern. The skilled workforce crisis is here, and it must be addressed. The 38 per cent year on year reduction is more than worrying. as apprenticeships are crucial to ensure our workforce meets our growth needs.
“There is no doubt the withdrawal of incentives to business to take on apprentices is impacting. The Victorian Chamber urges the Government to address this issue with a robust incentive scheme to support businesses, particularly small and medium-sized enterprises, in taking on apprentices.
“Our members have been clear: the financial costs are significant, and incentives are essential. A $15,000 incentive for small businesses, and scaled support for medium and large businesses, will help secure the future of our workforce. These investments are not just necessary; they’re urgent.”
Contact details:
media@victorianchamber.com.au, 0423 883 945
