New grants come as businesses express dismay over cuts to apprenticeship incentives
The Australian government is delivering $10 million in grants to help employers meet their workforce needs as businesses lamented the cuts to apprenticeship incentives.
The government announced on Tuesday that a total of 49 organisations have been funded to deliver Local Jobs, Local People grant projects that will better connect jobseekers with employers, training, and tailored assistance.
"These grants will benefit jobseekers, employers, and local businesses by delivering practical, community-led solutions that respond directly to local workforce requirements," said Employment and Workplace Relations Minister Amanda Rishworth in a statement.
The grants are being delivered as part of the Local Jobs Programme extension to June 30, 2027. They are expected to support people who experience barriers to employment, such as:
- Australians over the age of 45
- Young people up to 24 years of age
- Those needing additional help to connect with work or increase their hours
- First Nations peoples
The support activities will be focused on job-ready training, industry-specific skills development, employer-led placement, and wrap-around support, according to the government.
The Local Jobs, Local People Grants fund activities addressing local employment needs, supporting individuals, as well as helping people get jobs and access to training.
"The Local Jobs, Local People grants are an important tool to help Australian workers find employment," Rishworth said.
"We're backing Australians with the skills, experience and support they need to secure jobs, while helping employers unlock the skilled workforce they need."
Cuts to apprenticeship incentives
The $10-million grant comes as employers in Australia lamented the cuts to apprenticeship incentives for many employers in the Federal Budget.
"From 1 January 2027, employers with more than 200 staff will lose access to all incentives and the incentives received by many small and medium sized employers will reduce," said Innes Willox, chief executive of the Australian Industry Group, in a statement.
"Put simply, thousands of employers across the country will now receive less support to employ apprentices than they have in decades."
Willox said the cuts to apprenticeship incentives will further "entrench debilitating skills shortages and limit access to apprenticeship opportunities for Australians."
Trade apprenticeship commencements were down almost 20% in the year to September 2025, according to the latest national data. Non-trade commencements (traineeships) were also down just over 18%.
"Shortages of skilled trades workers are already impacting many industries," Willox said.
"Given the critical role of apprenticeships in delivering the skills needed to lift productivity, deliver housing and infrastructure, build sovereign manufacturing capability, and deliver high-quality services, this decision is astounding."
Willox stressed that Australia needs an urgent and sustained step change in numbers of apprentices and trainees to achieve national priorities.
"Now more than ever, a sharp focus is needed on addressing the cost and complexity faced by employers in employing apprentices and trainees to ensure these pathways remain a cornerstone of our skills development system," he said.
