Peak building and construction industry body Master Builders Australia has welcomed the release of the long-awaited Review into the Australian Apprenticeship Incentive System.
The review recognises the challenges faced by employers to attract and retain apprentices, particularly for small and medium enterprises (SMEs).
The building and construction industry is made up of over 445,000 businesses, 98 per cent of which as small in size.
SMEs make up 95 per cent of all businesses who hire an apprentice but only take on 60 per cent of first year apprentices.
Recommendations relevant to industry employers:
- Align incentives to the Government's economic priorities and social equity objectives. Direct payments to SMEs.
- Reward employers that are doing the right thing and address the behaviour of those who are not providing an appropriate working environment for their apprentices.
- Support the use of Group Training Organisations to assist SMEs in taking on new apprentices.
- Utilise the Australian Government's procurement policies to increase engagement of first and second year apprentices and reduce 'apprentice poaching' from SMEs.
- Review the apprentice data systems to make them easier for apprentices, employers and other users to use and navigate.
Quotes attributable to Master Builders Australia CEO Denita Wawn:
"Labour shortages are currently the biggest handbrake on fixing the housing crisis.
"Master Builders has worked closely with Dr Iain Ross AO and Ms Lisa Paul AO PSM who led the review, and we sincerely thank them for listening to the concerns of employers and the broader building and construction industry.
"Employing an apprentice comes at a cost. Not just their wage, but the hours spent teaching them, covering their training costs, and managing the associated administration, and helping them navigate the workforce which all adds up.
"A robust incentive system must provide assurance and minimise risk. It should mean that the employer does not shoulder the entire cost burden for the 50 per cent of apprentices who do not complete their studies.
"A better incentive system should free an employer to focus on training and teaching: this is especially important in the first and second years.
"Master Builders will work through the recommendations in the review and urges the Federal Government to prioritise the consultation and implementation of non-contentious recommendations as we do not have time to waste," Ms Wawn concluded.
