National
Australian Apprenticeships includes apprenticeships, traineeships, pre-apprenticeships, and higher apprenticeships in more than 500 occupations. Australian Apprenticeships are available to anyone of working age with eligibility to work in Australia, regardless of their level of education. Following the Administrative Arrangements Order made on 23 June 2022, the Department of Employment and Workplace Relations has responsibility for apprenticeships and traineeships for the federal government from 1 July 2022. The Australian Government Australian Apprenticeships website provides information for employers, apprentices, and trainees.
The Australian Apprenticeship Support Network (AASN) is the first point of contact for all queries about apprenticeships. The providers give personalised advice and support services from pre-commencement to completion. The Department of Employment and Workplace Relations contracts the Apprenticeship Network Providers (ANPs) while a Memorandum of Agreement between the Australian and State Governments formalises the cooperative monitoring of services of AASN Providers.
The Apprenticeships Data Management System (ADMS) is an online system used by employers, network providers and state training authorities for managing all aspects of Australian Apprenticeships. The ADMS was introduced by the federal government on 9 April 2022, and it is managed by the Department of Employment and Workplace Relations. The system will progressively streamline and automate some of the functions undertaken by the ANPs on behalf of employers. The ADMS replaces the Training and Youth Internet Management System (TYIMS), which was created in 2001 to track Australian apprentice and trainee and employer relations, and determine eligibility for and make payments.
Incentives
The Australian Apprenticeships Incentive System (AAIS) commenced on 1 July 2022, replacing the Australian Apprenticeships Incentives Program. The initiative provides support for eligible employers of Australian Apprentices and Australian Apprentices themselves to increase commencements and completions in priority occupations and support employers around Australia to fill skill shortages.
From 1 July 2022 to 30 June 2024, the first phase of the AAIS will provide wage subsidies for eligible employers in priority occupations. Hiring incentives will be available for employers of apprentices undertaking a qualification in an occupation that does not qualify for the Australian Apprenticeships Priority List. Australian Apprentices training in priority occupations can also receive assistance, paid every six months for their first two years. From 1 July 2024, following a checkpoint to assess progress, support will only be available for priority occupations, through a mix of employer and apprentice payments.
The Australian Apprenticeships Incentives Program (AAIP) provided a number of incentives to assist employers who took on an Australian Apprentice, particularly where the Australian Apprenticeship was in a trade experiencing a skills shortage. Employers and apprentices claiming incentives for an apprenticeship or traineeship that commenced before 1 July 2022 will continue to be supported under the Australian Apprenticeships Incentives Program.
Several payments from the AAIP will continue as part of the AAIS, including the Living Away From Home Allowance (LAFHA) that is available to eligible Australian Apprentices who have to move away from their parents’ or guardians’ home to take up or retain an Australian Apprenticeship, and support for Australian Apprentices with disability which includes the Disabled Australian Apprentice Wage Support (DAAWS) and the off-the-job Tutorial, Mentor and Interpreter Assistance.
Eligible apprentices can apply for Trade Support Loans to meet everyday costs while they undertake their training. The income contingent loans are paid monthly in arrears. Apprentices will not have to repay the loans until they are earning an income above the minimum repayment threshold, and apprentices who successfully complete their apprenticeship will receive a 20 per cent discount on their loan amount. The loan amount is indexed according to the Consumer Price Index (CPI).
Other Commonwealth Government funding
The National Agreement for Skills and Workforce Development (NASWD) was established through the Intergovernmental Agreement on Federal Financial Relations in 2012, and it identifies the long-term objectives of the Commonwealth Government and the state and territory governments in the areas of skills and workforce development. The NASWD is associated with the Skills and Workforce Development National Specific Purpose Payments (SPP), where the Commonwealth Government provides funding to state and territory governments to support them in the delivery of VET services and the running of their training systems.
Progress towards the NASWD targets is reported through the NASWD performance reporting dashboard, maintained by the Productivity Commission. On 15 November 2019, the Treasurer and the Minister for Employment, Skills, Small and Family Business requested the Productivity Commission to review the NASWD. Following an interim report released in June 2020, the Productivity Commission released its final report on the review of the NASWD on 21 January 2021.
As part of their commitment to the Heads of Agreement for Skills Reform, the Commonwealth Government and the states are working towards agreeing a new National Skills Agreement to replace the NASWD. The Agreement was initially to be finalised by August 2021, which was extended to the first half of 2022. Negotiations on the new National Skills Agreement are ongoing, with the Skills Ministers recommitting to the negotiation process following the federal election held in May 2022.
The Skilling Australians Fund was established as an ongoing arrangement by the Commonwealth Government in 2017 to ensure the businesses that benefit from employing migrants are also skilling Australians. Employers that sponsor migrants under the temporary skill shortage visa and certain permanent skills visas are required to pay a levy to generate revenue for the fund. From 1 July 2018 to 30 June 2022, the Fund has been managed through the National Partnership on the Skilling Australians Fund.