Ai Group calls the review 'very timely' amid evolving labour market
The New South Wales government wants to strengthen the state's apprenticeship and traineeship system through a comprehensive legislative review.
Steve Whan, NSW's Minister for Skills, TAFE and Tertiary Education, said the review of the Apprenticeship and Traineeship Act 2001 aims to make the system work better for students, employers, and training providers.
"We want a system that reflects today's economy and helps more people get the skills they need for good jobs, especially in the regions and in industries crying out for workers," Whan said in a statement.
According to the government, the review will begin with a survey seeking input from apprentices, trainees, employers, and training providers about their experience with the system.
"The feedback we get from the community will play a huge role in shaping the changes," Whan said. "We're committed to making this review practical, inclusive, and focused on results."
A 'very timely' law review
The Australian Industry Group (Ai Group) said it is "very supportive" of the NSW government's initiative.
Innes Willox, chief executive of the Ai Group, said the review is crucial to ensure that legislation stays up to date amid an evolving labour market.
"It's very timely to review the legislation – our members are hoping the review outcomes make it easier to engage with the system and reflect emerging industry needs," Willox told HRD in a statement.
Previous research from the Ai Group revealed that 96% of employers across Australia continue to face challenges in hiring apprentices or trainees, with a third of the respondents citing difficulty in finding suitable candidates.
In NSW, the Ai Group pointed out that its legislation does not support higher education qualifications to be approved as an apprenticeship or traineeship.
"This means that if employers and apprentices want to use such models, they can't sign government-approved and regulated training agreements and they don't receive the protections that employers and apprentices normally do," Willox said.
"Degree and higher-level apprenticeships are being considered by Skills Ministers at the moment, so the time is right to make sure the legislation can support these new initiatives."
Training Plan, consistency concerns
Another concern from employers is how the legislation handles Training Plans, which are documents that set out how an apprentice will receive formal training throughout their apprenticeship.
"We now have apprenticeships that are competency-based, so apprentices can progress through the wage structure and complete their apprenticeship when they are considered competent," Willox told HRD.
"This needs to be reflected in how Training Plans are dealt with in the Act."
The Ai Group also pointed out that some organisations are frustrated over the lack of national consistency in the apprenticeship and trainee system.
"Some states will declare a programme as an apprenticeship, others will treat them differently as traineeships. Some programmes are fully funded under free TAFE whereas in other states they receive no funding at all," Willox said.
The chief executive underscored that apprenticeships and traineeships are "vital" to the NSW economy.
"As we consider initiatives like electrification, net zero, sovereign capability, increased defence spending etc, it is skilled workers who will be doing that work. For many of those occupations, apprenticeships are the main pathway," he said.
The NSW's legislation review is a key commitment under the NSW Skills Plan 2024-28, which is the government's strategic plan for skills and blueprint for system reform in vocational education and training.
