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Victorian Apprenticeship Crisis VCCI Calls for Urgent Action
The Victorian Chamber of Commerce and Industry (VCCI) has expressed grave concern over a 38 per cent decline in apprenticeship and traineeship commencements from 2023-24 to 2024-25. With critical sectors such as carpentry, plumbing, and engineering fabrication most affected, this drop threatens Australia’s ability to build a skilled workforce and meet its infrastructure goals.
As Australia prepares to invest $524 billion in infrastructure projects, the Chamber is calling for urgent government action to address this crisis and restore employer incentives. The decline, the Chamber says, is exacerbated by the financial burden on employers, especially small businesses, in taking on apprentices.
Proposed Solution: A Two-Tiered Incentive Scheme
The Chamber has proposed a two-tiered incentive scheme designed to encourage businesses of all sizes to hire apprentices. This structured support includes:
- Small Businesses: A $15,000 incentive per apprentice, paid over the apprenticeship period, with 35% upfront, 25% after the first year, 25% upon completion, and 5% annually for years two to four.
- Medium Businesses: Incentives between $10,000 and $12,000, similarly distributed.
- Large Businesses: Targeted project-specific funding to support apprenticeships within their supply chains.
The Need for Urgent Action
Chief Executive Paul Guerra highlighted the significant role of apprenticeships in securing Australia's future workforce. “The skilled workforce crisis is here, and it must be addressed. The 38 per cent year-on-year reduction is more than worrying,” Guerra said. “Without robust employer incentives, businesses face insurmountable costs, and our workforce growth will stagnate.”
According to the Chamber’s research, nearly 40 per cent of its members believe that incentives of $12,000 or more are necessary to make hiring apprentices viable. Guerra urged the government to implement the proposed scheme, emphasising its importance for small and medium enterprises.
Government Should Act Decisively
Guerra urged the government to act decisively, saying, “A $15,000 incentive for small businesses, and scaled support for medium and large businesses, will help secure the future of our workforce. These investments are not just necessary; they’re urgent.”
The Victorian Chamber insists that restoring and expanding employer incentives is critical to reversing the decline in apprenticeship commencements and ensuring Australia has the skilled workforce needed to meet future demands. Without such measures, the Chamber warns, the nation risks falling short of its economic and infrastructure goals.
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For more information about apprenticeship support and incentives:
Victorian Chamber | Apprenticeship Support
Australian Apprenticeships Resources
Fair Work | Apprenticeship Information
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