Submission response
Subject: Submission on the Review of the Australian Apprenticeship Incentive System
Dear Sir/Madam,
I am writing to express our deep concerns regarding the potential removal of the hiring
incentive from all non-priority qualifications, as outlined in the recent review by the
Department of Employment and Workplace Relations (DEWR) on the Australian
Apprenticeship Incentive System. While we acknowledge the government's commitment to
improving apprenticeship completion rates and aligning the Incentive System with broader
economic objectives, we wish to emphasize the severe consequences that this proposed
change could have on registered Group Training Organizations (GTOs) and, subsequently,
on thousands of apprentices and trainees.
Our organisation, [redacted] operates as a registered Group Training
Organisation (GTO)[redacted]. The
proposed alteration to the hiring incentive system, if implemented across all non-priority
qualifications, poses a significant threat to the viability of ours and many other GTOs. For our
organisation alone, we anticipate a 60% drop in traineeship uptake as the continued rise in
costs of empoying trainees and apprentices will no longer be offset by the hiring incentives.
This potential scenario raises serious concerns about the survival of many GTOs, which, in
turn, would leave thousands of apprentices and trainees without viable employment
opportunities.
Group Training Organisations are pivotal in bridging the gap between apprentices and
trainees and prospective employers. We serve as the backbone of structured training
environments, offering mentorship, guidance, and essential support throughout the
educational journey. In the research of the GTO Advantage Report, it shows that GTO
completions are closer to 74% with the national average at 49%. By removing the hiring
incentive from GTOs operating in non-priority qualifications, the government risks
destabilising the foundation of apprenticeship and traineeship programs.
The far-reaching consequences of this proposed change, specifically that all non-priority
traineeships and apprenticeships will no longer attract hiring incentives, extend beyond the
financial challenges faced by GTOs. The closure of many GTOs would result in a sudden loss
of employment opportunities for apprentices and trainees, creating a ripple effect that
would impact the broader workforce. Moreover, it would hinder the Australian
Apprenticeship System's ability to fulfill its mandate of producing a skilled and adaptable
workforce, as GTOs play an instrumental role in shaping the future of the nation's workforce.
We strongly urge the DEWR to consider the potential domino effect that this proposed
change may trigger. We propose that registered GTOs be exempted from the hiring
incentive modifications to ensure the continuity of our services and, by extension, the
employment prospects of countless apprentices and trainees. This exemption would allow
us to maintain our commitment to providing quality training and support, preventing a
scenario where GTO closures lead to a void in opportunities for those aspiring to build their
careers through apprenticeships and traineeships.
We appreciate the DEWR's dedication to conducting a thorough review, and we remain
hopeful that the final recommendations will reflect a balanced approach, considering the
critical role played by GTOs in the success of apprenticeships and traineeships.
Thank you for considering our submission. We are available for further discussion or
clarification on any points raised in this letter.
Sincerely,
[redacted]