Australian Apprenticeships Reform

On Tuesday 6 December 2011, Senator Chris Evans, Minister for Tertiary Education, Skills, Jobs and Workplace Relations outlined the Australian Government’s intentions for reform of Australian Apprenticeships through the key recommendations outlined below:

R1. The Government is working with state and territory governments to harmonise Australian Apprenticeships arrangements. At a meeting of Commonwealth and state and territory ministers on 25 November 2011, states and territories agreed to a set of principles to guide this work, including reducing barriers to moving across jurisdictions and ensuring greater consistency of declared apprenticeship and traineeship pathways.

R2. Over the next two years, the Australian Government will fundamentally reform Australian Apprenticeships Support Services. By creating central points of contact, Australian Apprentices and employers will have easier access to more effective services. This will eliminate duplication by service providers and clarify stakeholder roles. An important element of this streamlining will involve working with services to simplify administrative processes by rolling out e-business functionality. On 29 October 2011, the Government released an open tender process for the provision of Australian Apprenticeships Support Services for two years (1 July 2012 to 30 June 2014). This tender process closed on 2 December 2011, and prompted a great response from industry.

R3. The Government will support state-based initiatives to ensure minimum standards for employers of apprentices and trainees without creating an additional layer of accreditation. Utilising the $101 million Australian Apprenticeships Mentoring Package, the Government will engage with peak industry bodies to develop strategies that support employers to understand their responsibilities when employing apprentices and trainees. The Government also supports improving the quality of on-the-job training.

R4. The most effective way to improve Australian Apprenticeships completion rates is to better support the apprentice/employer relationship, including assisting employers to understand and fulfil their responsibilities. The Australian Apprenticeships Mentoring package and the Accelerated Australian Apprenticeships package, delivered as part of Australian Government Skills Connect, will simplify industry access to programs supporting skills development.

R5. The Government considers incentives could be simplified and better targeted to meet Australia’s skills needs. The Government has commissioned an independent econometric review to identify support frameworks that will have the most impact.

R6. The Government rejected the establishment of an Employer Contribution Scheme as it believes industry is keen to cooperate voluntarily in a genuine partnership to improve the Australian Apprenticeships system.

R7. The Australian Apprenticeships Reform package, announced in the 2011–12 Budget, includes two key programs that will deliver holistic workforce solutions under Australian Government Skills Connect: the Australian Apprenticeships Mentoring program (from 3 November 2011) and the Accelerated Australian Apprenticeships program (from 21 November 2011).

R8. VET in Schools is recognised as an important pathway to Australian Apprenticeships. From 1 July 2011, RTOs are regulated through ASQA. The Government will continue to invest in quality program delivery, including through initiatives such as Trade Training Centres, National Trade Cadetships and Australian Apprenticeships Advisers (as part of the Australian Apprenticeships Mentoring Package).

R9. The Government will work with Industry Skills Councils to improve national consistency in preparatory training and requirements for qualifications, which may be used in preparatory training programs.

R10. The Government announced targeted support for equity groups in the 2011-12 Budget through the Australian Apprenticeships Mentoring program and through additional funding for the Australian Apprenticeships Access Program.

R11. The Government has introduced an Australian Apprenticeships Ambassadors program to help raise the status of apprenticeships and traineeships as a valued career pathway for females and males alike. Initial Australian Apprenticeships Ambassadors who have agreed to help promote Australian Apprenticeships include Mr Kevin Sheedy AM, Ms Jody Rigby, Mr Andrew Ryan, Mr Neil Perry and Mr Cameron Ling.

R12. The Government sees competency-based wage and training progression in apprenticeships and traineeships as a priority area and will continue to promote competency-based progression through the Accelerated Australian Apprenticeships package announced in the 2011–12 Budget. The Government is working with industry stakeholders to develop a model clause that supports a more flexible approach to training through the modern awards system and removes restrictions to competency-based progression from existing awards.

R13. The Accelerated Australian Apprenticeships initiative, announced in the 2011–12 Budget, supports the shift to competency-based progression, which will support the implementation of Recognition of Prior Learning and Recognition of Current Competence. The Government will also support the inclusion of Recognition of Prior Learning and Recognition of Current Competence provisions in modern awards in any reviews undertaken by Fair Work Australia.

R14. The Australian Government agrees that a review of apprentice and trainee wages and conditions by Fair Work Australia is warranted, and intends to actively contribute to the review. The Government recognises the close interaction between apprentice wages and conditions as well as Government incentives and will consider these matters concurrently, to ensure there is no inadvertent damage to the pathways for those seeking skills.