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Wage subsidies have been a long-standing part of employment programs in Australia. They aim to increase employment opportunities for job seekers by providing a financial incentive to employers, primarily by contributing to the initial costs of hiring a new employee. This audit was an opportunity to examine the effectiveness of the administration of wage subsidies, and the extent to which the Department of Education, Skills and Employment (DESE) monitored and evaluated if wage subsidies improved employment opportunities for employment program participants, by assisting job seekers into work and meeting employer needs. The audit found that the DESE administration of wage subsidies is largely effective. The department's contractual framework, program guidelines, systems, and compliance program support the assessment, processing and payment of wage subsidies. The monitoring, reporting and evaluation of wage subsidies have been largely effective in ensuring policy objectives are being achieved.

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The Australian vocational education and training (VET) system, which includes apprenticeships and traineeships, aims to ensure a skilled workforce that can meet demand and promote economic growth. The Australian Apprenticeships Incentive System (the Incentives System) commenced on 1 July 2022, and replaced the Australian Apprenticeships Incentive Program which had been in place since 1998. The program is the responsibility of the Department of Employment and Workplace Relations (DEWR). A potential impact of the program set out in the Regulation Impact Statement was an expected increase in commencements by around 11,500 per year for each of the first two years then 5,500 per year ongoing, compared with [pre-Coronavirus Disease 2019] pre-COVID levels. An audit of the Incentives System during phase one provides assurance to the Parliament on the effectiveness of the design and implementation of the program by DEWR.

The Incentives System has provided $318.6 million in financial supports to employers, apprentices and training organisations since 1 July 2022 to 31 December 2023. It has assisted 40,043 employers and 120,494 apprentices through to 31 December 2023. The audit found that the design and implementation of the Incentives System was largely effective. The design of the program took into account various reviews and evaluations, and options were developed for government consideration. The program guidelines are consistent with the Commonwealth Grant Rules and Guidelines 2017. Appropriate compliance monitoring is in place; however, the approach to performance measurement and monitoring needs improvement. The planned review of the program had not been finalised as at March 2024. The audit made one recommendation to DEWR relating to developing internal and external performance measures that can provide a clear view of program impact. DEWR agreed to the recommendation to develop complementary performance measures and targets for the Incentive System that provide a clear view of program effectiveness and the extent to which the program objective is being achieved.

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