ACCI analysis reveals drop in apprentice numbers amid declining incentive programmes
The Australian Chamber of Commerce and Industry (ACCI) has expressed concerns about declining apprentice numbers as it warned the government against reducing or removing incentives for employers taking on apprentices.
In its latest government submission, the ACCI pointed out the impact of closing the Boosting Apprenticeships Commencement (BAC) to new entrants in 2022.
The BAC scheme offered wage subsidies to employers taking on new apprentices and trainees during the country's economic recovery from the pandemic.
It was successful in boosting apprentice numbers after it was launched, according to the ACCI, but this progress has been reversed after the scheme was shuttered to new entrants.
Source: Australian Chamber of Commerce and Industry
"This overview of recent incentive programmes highlights how important incentives are in encouraging employers to hire apprentices and trainees," the ACCI said in the report. "It also illustrates the impact incentives have particularly traineeships. While apprenticeship numbers have remained steady, traineeships significantly increase because of incentives."
Consequences for reducing incentives
According to the ACCI, removing incentives would bring about "potential for significant harm" on the Australian economy.
"Any reduction or removal of incentive payments to employers would have dire consequences, leading to decreased apprenticeship commencements, exacerbating skills shortages and impeding the nation's long-term economic growth," the chamber said in a statement.
To address Australia's declining apprentice numbers, it recommended the following:
- Direct any revenue the government receives from the Skilling Australians Fund levy to fund more apprenticeships and traineeships.
- Postpone the planned reduction of incentives from July 2024 for one year to allow sufficient time to develop the next iteration of Australian Apprenticeship Incentives.
- Create a five-year Job Creation Incentive programme
