Better support for apprentices and
employers
Andrew Lalor
June 2014
Vocational Education and Training Reform
 A priority to strengthen the influence and role of Industry
and business in VET
 A need to simplify governance, reduce complexity and
clarify responsibilities
 A focus on quality
 Stronger support to help apprentices complete and
employers to engage
 Heightened role of skills to help industry adjust to new
competitiveness agenda
 New priority for world-class skills
A deliberative dialogue with all players in the sector
These priorities are framed by
New drive for productivity
Multi-factor productivity
1.25
Index, 1990=100
1.2
1.15
1.1
1.05
1
0.95
United Kingdom
United States
Source: The Conference Board Total Economy Database, 2013
Australia
Canada
Germany
These priorities are framed by
The imperative to lift competitiveness, facilitated by de-regulation
Source: Peter Harris, Productivity Commission. Speech, “Productivity and the National Income Outlook”.
There are challenges of adjustment
Proportion of all employed people in the
production and services industries, 1966–
2011
Source: Australian Workforce and Productivity Agency, July 2012
Future focus: Australia’s skills and workforce development needs
A discussion paper for the 2012 National Workforce Development Strategy
Proportion of all employed people in the
blue and white collar occupations, 1966–
2011
There are challenges for growth
Average annual change in projected demand for qualifications, employed, unemployed and not in the
labour force 2011–2025 (%)
Long Boom
Smart
Recovery
Terms of Trade
Shock
Ring of Fire
Postgraduate
5.4
4.8
5.0
3.8
Undergraduate
4.5
3.9
4.1
2.9
Advanced diploma
3.4
2.9
3.1
2.0
Cert III and IV
4.5
3.9
4.0
3.1
Cert I and II
1.9
1.4
1.5
0.7
Total
4.2
3.6
3.8
2.7
Cert III and above
4.4
3.9
4.0
2.9
Source: Deloitte Access Economics (2012) ‘Economic modelling of skills demand and supply’, output model (demand)
There are challenges for entry-level training
•
Employment-to-population ratio, Jan 2000 to Dec 2012,
indexed (Jan 2000=100)
Priorities are reflected through the Budget
Industry Policy
 Government is responsible for creating the right
environment
 De-regulation
 Support entrepreneurship
 Disperse technology and innovation
 Responsive skills system
 Driving growth in areas of competitive advantage
 Growing businesses creates jobs
Priorities are reflected through the Budget
Skills
 Streamlined and targeted funding
 Industry Skills Fund to support new areas of competitive
advantage
 Health and biomedical products
 Mining equipment technology services
 Oil and gas equipment technology and services
 Advanced manufacturing
 Trade Support Loans
 Ongoing support for apprentices and employers
 Ongoing support for training of job seekers
 Skills for Education and Employment
 Adult Migrant English Program
Priorities for Apprenticeship Reform
 The transforming power of ‘Situated Learning’
 Employers increasingly recognising the need for
skilled workers
 Competency is refined in a work setting
 Need to minimise jobless training
 The power of ‘activated’ employers
Apprenticeship Reform - Support
 Improved outcomes through improved support
 A national service footprint
 Mentoring has proven effectiveness
 31 mentoring projects
 25,400 apprentices
 1070 mentors
 5.2 percentage point increase in retention
 Strike the right balance
 Financial incentives vs support
Apprenticeship Reform - Harmonisation is critical
Apprenticeship/Traineeship Variation –Type and Duration
Occupation/Qualification
Food Processing Operator:
Type – Apprenticeship
Cert III – Food Processing
(A)/Traineeship (T)
ACT
NSW
NT
QLD
SA
TAS
VIC
WA
T
T
T
T
T
T
T
T
Duration (months)
24
18, 24
36
24
24
36
36
24
Hairdresser: Cert III Hairdressing
Type
Duration
A
A
A
A
A
A
A, I*
48
33, 36
36
42, 48
48
36
36
Tree Surgeon (Arborist):
Cert III – Arboriculture
Type
Duration
A
48
T
24,36
A
36
T
36
A
24
T
24,36
T
12
T
36
* I = Industrial Trainee in WA only
 National consistency needs a two pronged approach:
 Address the current problem
 Ensure national consistency into the future
 Commonwealth and the States and Territories are working
collaboratively to achieve system efficiency, flexibility and mobility
Apprenticeship Reform – Trade Support Loans
 Concessional income contingent loan of up to $20,000
 For apprentices in priority areas to assist them to complete
their apprenticeship
 To assist with the costs of living and learning while
undertaking an apprenticeship
 A 20 per cent discount to the amount borrowed if the
apprentice completes
 Loans repaid through the tax system when their income
meets the repayment threshold ($53,345 in 2014-15)
 Legislation is currently before Parliament for 1 July 2014
commencement
DEPARTMENT OF INDUSTRY
Industry House
10 Binara Street
Canberra City, ACT 2601, Australia
Telephone +61 2 6213 6000