Skills for tomorrow: Shaping the future of Australian apprenticeships

The long-awaited Final Report of the Strategic Review into the Australian Apprenticeship Incentives System has been released, along with an announcement of a $10,000 incentive for apprentices in residential construction.

The Strategic Review was announced in early 2024, with a series of consultations that heard from more than 600 people with an additional 145 written submissions. The Final Report provides considerable detail and new analysis into the issues surrounding the Australian Apprenticeship Incentive System, including targeting incentives where they are most needed, cost-of-living issues, poor attitudes to apprenticeship career options, supporting social equity, and improving services for employers and apprentices.

The Final Report is split across eight chapters, with most containing a range of recommendations:

1. The challenge: meeting Australia’s skills needs

2. Maximising the efficiency and effectiveness of the incentive system

Recommendations include:

  • Align with economic priorities and social equity objectives
  • Develop a transparent, user focussed performance framework
  • Develop a model to recognise high performing employers
  • Increase apprentice incentives
  • Leverage the potential of the Australian Skills Guarantee
  • Refer findings to the Fair Work Commission to support a review of modern awards

3. Raising awareness of apprenticeships and encouraging take up

Recommendations include:

  • Deliver a national campaign for apprenticeships
  • Celebrate apprentices’ achievements and success
  • Provide clear and timely career information to people considering apprenticeships
  • Improve teacher understanding on Vocational education and training pathways

4. Improving the experience for employers and apprentices to encourage completion

Recommendations include:

  • Establish a robust monitoring and information sharing framework on employer performance
  • Commission an independent review of the Apprentice Connect Australia Provider model
  • Target compliance monitoring for improved language, literacy, numeracy in registered training organisations

5. Increasing apprenticeship participation and completion for priority cohorts

Recommendations include:

  • Implement a pilot program to subsidise small and medium employers engaging women apprentices over 21
  • Establish formal partnership mechanisms to ensure culturally competent training is delivered

6. Enabling broader vocational education and training system reforms

Recommendations include:

  • Support best practices in the recognition of prior learning
  • Develop and structure fast-track qualifications

7. Supporting apprentice transitions into secure, well-paid work and careers

Recommendations include:

  • Implement a National Skills Passport to support apprentices

8. Improving data and evaluation to respond to future challenges

Recommendations include:

  • Meet shared obligations under the new Statement of Members’ Expectations
  • Ensure communication protocols provide vocational education and training regulators with data

Government response

The Australian Government Department of Employment and Workplace Relations is considering the Final Report and will publish a response in 2025. It is expected that changes to the incentives system, along with broader changes from the report recommendations, will be rolled out in the second half of 2025 and into 2026, pending a Federal election.

GAN Australia input

GAN Australia, with our hosts the Apprenticeship Employment Network, made two written submissions to the review, which can be found on the consultation hub. The Quality Apprenticeship employer accreditation has been specifically referenced in the review as a method of promoting quality employers of apprentices.

The team at GAN Australia will be reviewing the full Final Report and publishing a more detailed Insights post in coming days.