The announcement of a strategic review of the Australian Apprenticeships Incentive System has been welcomed by the Australian Chamber of Commerce and Industry.

“Incentives play an essential role in the apprenticeship model, providing necessary support for both apprentices and employers,” David Alexander, ACCI’s Chief of Policy and Advocacy said.

“The apprenticeship model plays a vital role in skills development and successful transitions from education to employment. To ensure those looking for work have the skills and training required for the jobs of today and tomorrow, we must get the incentives right.”

The Review comes at a critical time for the incentive system. From 1 July 2024, the Australian Apprenticeships Incentive System will see an up to 70% decrease in incentive payments for high-priority occupations and the removal of incentives altogether for those non-priority.

“The decrease in incentive payments has the potential to significantly impair the ability of businesses to train up apprentices,” Mr Alexander said.

ACCI’s pre-Budget submission calls for government support for all apprenticeships and traineeships of no less than 30% in wage subsidies across two years. ACCI also seeks reinstatement of the fixed monetary completion incentives of $2500 to employers and support of up to $5000, to assist in the completion of their training to all endorsed apprentices and traineeships.

“ACCI looks forward to providing input into the review and will work closely with the Hon. Justice Iain Ross AO and Ms Lisa Paul AO, industry partners and the government to ensure Australia maintains a strong and dynamic workforce for the future.”