The new system builds on the success of pandemic-related initiatives
The Federal government on Tuesday announced a "new system of incentives" to boost employment for trade workers by providing incentives to apprentices and employers who will hire them.
The incentives are building on the success of pandemic-related initiatives that helped drive down unemployment and produce a record number of trade apprentices, according to Minister for Employment, Workforce, Skills, Small and Family Business Stuart Robert.
"We will provide a record $7.8 billion this financial year to deliver generational skilling across the nation, with a heavy focus on supporting apprentices and trainees," said Robert in a statement.
As part of the government's plans, the Boosting Apprenticeship Commencements and Completing Apprenticeship Commencements wage subsidies will be extended for three more months.
However, starting July 1, these successful programmes will be replaced by a new system of incentives.
"We will invest $2.4 billion in a new Australian Apprentices Incentives System, with targeted incentives to employers, apprentices and trainees," Robert said.
Under the new system, apprentices and trainees in priority occupations will receive a $5,000 grant over two years to assist with the cost of undertaking an apprenticeship.
"As we move into the second phase, the Australian Apprenticeships Incentive System will shift to supporting occupations in demand or skills need, with a hiring incentive of up to $4,000 to be provided for employers in priority occupations, as well as a new Australian Apprentices Training Support Payment of up to $3,000 paid directly to apprentices in priority occupations," explained Robert.
"It will be guided by a new Australian Apprenticeships Priority List, which sets out the occupations with an apprenticeship or traineeship pathway that have strong current and future demand. The list is based on the National Skills Commission analysis and will be updated every year."
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Meanwhile, the government will also be implementing a new National Workforce Strategy, which will outline a "more dynamic, responsive, and capable workforce" to drive employment and the economy, according to Robert.
"This Strategy will inform and shape the development of workforce policy and sector-specific workforce strategies across the economy," said the minister.
It will also reflect the government's "five guiding principles of workforce policy," which include using data, equipping Australians with in-demand skills, removing barriers to work, activating industry, and targeted migration.
