NCVER: Report 3
The apprenticeship and traineeship
system’s relationships with the
regulatory environment
© Commonwealth Government, 2011
ISBN PDF
978-0-642-78011-9
ISBN RTF
978-0-642-78012-6
This work has been produced by the National Centre for Vocational Education Research (NCVER) on
behalf of the Australian Government and state and territory governments with funding provided through
the Australian Department of Education, Employment and Workplace Relations. Apart from any use
permitted under the CopyrightAct 1968, no part of this publication may be reproduced by any process
without written permission of the Commonwealth.
The views and opinions expressed in this document are those of the author(s) and do not necessarily
reflect the views of the Australian Government, state and territory governments or NCVER.
NCVER ref: DMS# 99763
January 2011
Contents
Tables and figures
Overview
6
The role of licensing in the apprenticeship system
Introduction
The licensing framework
Licensing, qualifications and apprenticeships
Conclusions
References
Appendix: Occupations that do or may require licensing
10
11
17
22
23
24
Award structures
Introduction
Employment arrangements of apprentices and trainees
Award wage rates and relativities
30
32
35
Trainees
Apprentices
Pay rates for adult apprentices
Consideration of other factors
School-based apprentices
35
39
42
44
45
Allowances
Competency-based progression
Identifying over-award payments
46
48
50
Method
Extent of over-award payments
Final comments
References
Appendix
Legislative and quality assurance arrangements
Introduction
Legislation
The specific role of apprentice and trainee legislation
Quality assurance
The players
The training contract and the training plan proposal
The AQTF
References
Appendix: Some thoughts on quality assurance and the AQTF
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50
53
57
58
59
76
77
77
81
81
82
83
88
89
Page 3
Tables and figures
The role of licensing in the apprenticeship system
Table 1 Arrangements for electrical licensing in Australia
Table 2 Licensing arrangements for selected occupations
Table 3 Licensing, apprenticeship and traineeship numbers and
qualifications minor occupational groups
relevant to VET
Table 4 Number of commencing apprentices and trainees for
2006 by occupational group and sorted by size
Table A1 Occupations that do or may require registration
or licensing
Figure 1 Generic industry licensing architecture
Figure 2 Regulatory risk management approaches
13
14
17
20
24
11
12
Award structures
Table 1 Apprenticeship contracts by employment instrument, 2009
commencements
33
Table 2 Training wage schedule rates of pay, as proportion of
National Minimum Wage, July 2010
36
Table 3 Wage levels as proportion of National Minimum Wage for
certificate IV traineeships, July 2010
37
Table4 Wage levels as proportion of National Minimum Wage for
school-based traineeships, July 2010
37
Table 5 Proportion of employees in typical trainee occupations
reliant on minimum rates of pay
38
Table 6 Apprentices in trades occupations with main relevant
modern award(s)
40
Table 7 Apprentice wage ratios by year for selected Awards (4 year
apprenticeships)
41
Table 8 Apprentice wage ratios for three year apprenticeships
41
Table 9 Pay ratios for adult apprentices
42
Table 10 Formula for calculating pay rates for adult apprentices,
selected awards
43
Table 11 Formula for calculating pay rates for adult apprentices,
Manufacturing and Associated Industries and Occupations
Award 2010 and related awards
43
Table 12 Formula for calculating apprentice wage rate based on
highest year of schooling
44
Table 13 Incidence and examples of tool allowance provisions for
apprentices in modern awards
47
Table 14 Apprentice and trainee completions in trade occupations,6
certificate III or above, by duration of training, 1999–2009
(%)
48
Table 15 Trainees in-training as at 31 December 2009 by
wage level
52
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Table 16 Apprentice average weekly income and award over-payment
by selected characteristics
54
Table 17 Trainee award over-payment by characteristics
56
Table A1 Modern awards and their inclusion of apprentice rates of
pay, Training Wage Schedule and School Based
Apprentices Schedule
59
Table A2 Pay ratios for 4-year apprentices
62
Table A3 Wage levels for Apprentices—Queensland
64
Table A4 Wage Levels for trainees—Queensland
65
Table A5 List of pre-reform awards and NAPSAs used for
calculating apprentice rates of pay
66
Table A6 Award rates of pay by award and stage
69
Table A7 Adult apprentice rates of pay
71
Table A8 Wage level definitions for traineeships based on occupation,
industry and sector of employment
72
Table A9 Trainee wage rates used in the analysis
74
Legislative and quality assurance arrangements
Table 1
Indicative good practice for RTOs delivering training to
apprentices noted in the WA good practice guide
84
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Overview
Apprenticeships and traineeships are based on a legal contract—the contract of training—
between an individual, an employer and a training provider. However, the contract of training is
but one part of the legal or regulatory framework that impinges on apprenticeships and
traineeships, and it is this framework that is the subject of this report. The report comprises three
separate papers: the licensing system; award structures; and legislative, institutional and quality
assurance arrangements.
The first examines the role of licensing in the apprenticeship system. It considers whether certain
occupations mandate a licence and whether this has an effect on apprenticeship and traineeship
numbers. Our conclusion is that licensing may be an issue for the labour market but is not really
an issue for the apprenticeship and traineeship system. In general one does not have to complete
an apprenticeship or traineeship to obtain an occupational licence, and there are many
apprenticeships and traineeships providing training for non-licensed occupations.
The second considers aspects of award structures and implications for apprentice and trainee
rates of pay. The apprenticeship model combines a contract of training with a contract of
employment and as such involves two regulatory systems: the training system and the industrial
relations system. The new Fair Work industrial relations system has consolidated coverage into
122 modern awards, 95 of which contain the Training Wage Schedule and 45 of which provide
for the employment of apprentices. Considerable diversity in apprentice pay and conditions
remains and it is as yet unclear whether the new framework can be more adaptive in response to
issues such as the expansion of apprenticeships and traineeships into new areas, competencybased wage progression, and the recognition of previous training and qualifications.
Low rates of award pay for apprentices have been targeted as dissuading young people from
starting an apprenticeship as well as contributing to low completion rates, but this criticism
assumes that few apprentices receive above-award payments. Analysis of data from the 2009 ABS
Survey of Education and Training finds that over-award payments for apprentices are common,
especially in the electro-technology and automotive and engineering trades. Larger businesses are
more likely than smaller organisations to pay above award and there are few differences between
apprentice pay in metropolitan and regional areas. Most trainees also receive over-award
payments, particularly existing workers, older trainees and male trainees. In most cases, the
relevant award wage for apprentices and trainees is below the national minimum wage. Even
after taking into account above-award payments, a majority of apprentices, as well as most young
trainees and most female trainees, earn less than the minimum wage.
The final paper outlines the legislative and quality assurance arrangements for apprenticeships
and traineeships, and includes consideration of the Australian Quality Training Framework
(AQTF). The first point to be made is that the legislative framework’s main function is to specify
the circumstances in which an apprenticeship or traineeship can be created. This is important
because the creation of an apprenticeship or traineeship means that the employer can access the
award provisions pertaining to training wages (i.e. can take advantage of lower wages) and the
support provided by government. This implies that it is preferable for an employer in some
circumstances to take on an apprentice or trainee rather than an employee who is governed by
standard arrangements. However, there is little in legislative arrangements that impinges on the
quality of apprenticeships and traineeships, although they do provide for training plans, which
are an important feature of apprenticeships and traineeships. The issue of quality is pretty much
left to the AQTF regulatory arrangements, which apply to apprenticeships and traineeships in
exactly the way that they apply to all training provided within the AQTF, although the state
authorities do use the training plans in their quality assurance arrangements, and the field forces
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(which vary in size and activity by state) do provide some pastoral care. At the end of the day, the
quality of apprenticeships and traineeships will depend on the culture of the employers and
training providers, with state field forces also playing a role.
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The role of licensing in the
apprenticeship system
John Stanwick
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Introduction
Licensing and regulation is introduced into occupations where governments believe that market
forces will not adequately address certain risks—typically reasons related to safety but also
consumer transactions, environmental protection and other reasons. Licensing arrangements can
also be promoted by incumbents in an occupation as a way of protecting wages and conditions.
There are many occupations that have some sort of licensing arrangements. For many of these
there are training requirements that lead to or contribute to a licence. By extension, the
apprenticeship system may be a relevant pathway to a licence.
The extent of training requirements varies by the type of license in place. Eikenloff and Porter
(2003) discuss three types of license in terms of training issues. The first type is referred to as
occupation-based licensing and generally requires a full qualification for the issue of a license.
Occupations such as electricians and plumbers fall under occupational licensing. The next type of
licensing is referred to as portional occupation-based licensing and here the license forms part of
the work of an occupation. For example, pest controllers may be licensed to use certain
pesticides but not all. The final type of licensing mentioned is known as activity-based licensing.
This often relates to an area of risk or the operation of a piece of equipment, for example,
driving a train or a bus or using a forklift. It can in some instances involve a full qualification but
more often it does not. We can see then that the type of license has implications for the training
required1. For some types of licensing, particularly occupational licensing in the trades area,
apprenticeships may be an appropriate pathway, but not necessarily for some of the other types
of licensing, where the training requirements are much more limited or specific (e.g. driving a
forklift) or where it is more efficiently done off the job. Even where an apprenticeship might be
an appropriate pathway, it does not follow that an apprenticeship is a necessary condition for a
licence.
The approach taken in this paper to address the links between licensing and the apprenticeship
and traineeship system is as follows. Firstly, the general system of licensing and regulation in
Australia is examined. This will explain how licenses are obtained, the various types of licenses
and training required. We find that there is only a loose relationship between licensing and
apprenticeships and traineeships, even for those occupations requiring a license. The remainder
of this paper elaborates on this lack of connection. We look at the qualification distribution by
occupation and show that even in licensed occupations there are many working without the
appropriate qualification. For the licensed occupations we also tabulate from the National VET
Provider Collection database the split between apprenticeships and other students. Finally we
show the split between licensed and non-licensed occupations for apprenticeships and
traineeships.
Our conclusion is that licensing may be an issue for the labour market but is not really an issue
for the apprenticeship and traineeship system. In general one does not have to complete an
apprenticeship or traineeship to obtain an occupational licence, and there are many
apprenticeships and traineeships providing training for non-licensed occupations.
1 We exclude from our analysis of licences the ‘white card’ required by construction workers as proof of basic safety induction
training (<http://www.safework.sa.gov.au/show_page.jsp?id=7429>). This comprises a single unit of competency on general safety,
a site induction and task-specific safety training (see code:
<http://www.ascc.gov.au/ascc/AboutUs/Publications/NationalStandards/NationalCodeofPracticeforInductionforConstructionWo
rk.htm>)
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The licensing framework
Before we examine data on licensing and apprenticeships it is useful to examine the general
framework for the issuing of licenses as this will also inform the types of training requirements
necessary for a licence. The framework for the issuing of licences is outlined below. The
framework begins with the government deciding the need to introduce a license and ends with
the issuing of a license. While the framework is taken from a 2002 publication it is still relevant to
how the licensing system currently operates. After explaining the main elements the concepts will
be illustrated by a few current licensing arrangements.
Figure 1
Generic industry licensing architecture
The image of Figure 1 has been removed and replaced with a description of the image to ensure
that the information is available to people with various information accessibility needs. The
image is included in the PDF version of this publication.
This figure illustrates in a flow chart the structure of industry licensing and identifies the four
main elements of:




parliament and government and legislation,
the licensing authority,
licensing requirements and
the actual licence or certification.
Source: ANTA (2002).
We see from the diagram that there are four main elements to the arrangements. These are discussed
in turn:
Parliament/government and legislation: as discussed previously, licensing is introduced by state and
territory governments where there is deemed to be market failure in regards to certain public
risks. The primary way of addressing these risks is through the passing of legislation that
introduces standards, controls, restrictions and the like on industry and the community. In terms
of occupational licensing, the legislation imposes controls on undertaking certain activities or
practising certain professions.
Legislation can be primary (Acts of parliament) or subordinate (rules and regulations etc.).
Primary legislation outlines the policy and principles of the legislation, whereas the subordinate
legislation deals with the administrative details.
The licensing authority: there are two main forms of institutional arrangements for industry
regulation. The first is that the licensing authority is part of a government agency. The second
type of licensing authority is independent industry regulatory bodies. If we use the example of
electricity from table 1, we see that, while across most jurisdictions, government departments are
the licensing body (e.g. the Department of Justice in Queensland and Tasmania); in the Northern
Territory it is the Electrical Workers and Contractors Licensing Board. Both forms of industry
regulators are generally accountable to a government minister.
Licensing requirements: these requirements are reflected in legislation and can include both
competency related and non-competency-based requirements. Examples of competency-related
requirements are possession of trade or tertiary qualifications (sometimes from specific
institutions) and possibly through an apprenticeship pathway; completion of a training package
qualification or part thereof, completion of a training course through the VET sector; or
demonstration of knowledge and skills through examinations determined by the regulator.
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Examples of non-competency-based requirements include insurance requirements, financial
capacity requirements, industry experience requirements, age requirements and fit and proper
person requirements. Note that these requirements often do not apply to people undertaking the
qualifications for the licence but are more in the nature of business or social characteristics.
The licence: the licence can be issued at various levels as illustrated in figure 2.
Figure 2: Regulatory Risk Management Approaches
The image of Figure 2 has been removed and replaced with a description of the image to ensure
that the information is available to people with various information accessibility needs. The
image is included in the PDF version of this publication
This figure shows the approaches to risk in a regulatory environment, identifying the risk control
points of business, principals, supervisors and individuals:




Licensing of business entities applies to entities not persons, it involves non-competency
based requirements
Licensing of business principles includes both competency based requirements and noncompetency based requirements
Licensing of supervisors includes competency based requirements and some noncompetency based requirements
Licensing of individuals involves mainly competency based requirements and some non
competency based requirements
Source: ANTA (2002).
As we can see from figure 2, licensing can range from licensing an entire business to licensing an
individual within the business. At which point the licence will be targeted depends on several
factors, including the nature of the industry, the nature of the risk the licensing is aimed at, the
risk profile of the government or industry regulator, and the resources available to the regulator.
There are two main types of license that are issued. The first is a physical licence that is issued
subject to entry requirements such as those listed previously. The second can be termed an
implied licence and has specific requirements (such as qualifications) but where no physical
licence exists. An example of a non-physical licence is the Australian Securities and Investment
Commission (ASIC) licence for carrying out certain types of financial services such as providing
financial product advice or dealing in financial products. The person is therefore deemed to have
the license by virtue of having the appropriate qualification.
As an illustration of this framework tables 1 and 2 provide basic-level information on licensing
arrangements for a handful of occupations. Table 1 examines arrangements across all states and
territories for a traditional trade—electricians—and table 2 examines arrangements for a variety
of other occupations in a given jurisdiction.
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Table 1
Arrangements for electrical licensing in Australia
State
Name of licensing
body
Primary
legislation
Types of licence
Qualification requirements for
an electrician
Western Australia
Electrical licensing
board (Energy
Safety)
Electricity Act 1945
Electrical contracting
Electricity
(Licensing)
regulations 1991
Electrical installing
Essential performance capabilities
as agreed by the National Uniform
Electrical Licensing Council
Electrical training
Restricted electrical
New South Wales
Department of Fair
Trading
Home Building Act
1989
Electricity
(Consumer Safety)
Act 2004
Australian Capital
Territory (ACT)
Building, electrical
and plumbing control
(ACT Planning and
Land Authority)
Construction
occupations
(licensing ) Act 2004
Contractor
Qualified supervisor
certificate
Nominated
supervisor (on
contractor licence)
Electrical contractor
Unrestricted
electrician’s
Achieved through various (six)
pathways including apprenticeship
and trade qualification.
Some need a certificate from the
Vocational Trade Tribunal2
There are a variety of ways the
qualification for the licence can be
obtained, including through an
apprenticeship or a trade certificate
Restricted electrician
Northern Territory
Electrical Workers
and Contractors
Licensing Board
Electrical Workers
and Contractors Act
(2009)
Electrical contractor
Mainly though an apprenticeship
Electrical worker
Restricted licence
Queensland
Department of
Justice, Fair and
Safe Work
Electrical Safety Act
2002
Electrical contractor
Mainly through an apprenticeship
Various electrical
worker
Restricted electrical
work
Training permit
South Australia
Tasmania
Office of Business
and Consumer
Affairs
Department of
Justice (Workplace
Standards Australia)
Plumbers, Gas
Fitters and
Electricians Act
1995
Electrical contractor
Occupational
Licensing Act 2005
Practitioner
(electrical work)
Restricted
Registered workers
Electrical contractors
The appropriate vocational
qualification approved by the
Commissioner and certain
certificates of competency issued by
the Industrial and Commercial
Training Commission
Completed a relevant training
package qualification and
completed 12 months experience in
the practical application of AS3000
and completed equivalent of 4 years
relevant experience
The Vocational Training Tribunal (VTT) is a statutory body in NSW responsible for trade skills recognition, resolving complaints
and disputes and considering applications for the transfer, suspension, cancellation and variation of apprenticeships and traineeships
(NCVER online glossary, viewed August 2010, < http://www.ncver.edu.au/resources/glossary/about_the_glossary.html,>)
2
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Victoria
Energy Safe Victoria
Electrical Safety Act
1998
Electrical inspector
Electrical contractor
Electrician
Electrical worker
Completion of an apprenticeship
(cert III) and completed the
Licensed Electrician’s Assessment
conducted by Energy Safe Victoria
or equivalent
Supervised worker
Restricted electrical
worker
Source: The various electrician licensing authorities across Australia
Table 1 shows that there are quite a lot of similarities in arrangements across the states. In terms
of qualification requirements, while the apprenticeship system is the main pathway in some
states, in other states there are other pathways, that is, the apprenticeship pathway is not
necessarily a compulsory pathway to becoming a licensed electrician. It is also worth noting in
terms of the Council of Australian Governments’ (COAG) agreement on mutual recognition, if
one state permits licensing without an apprenticeship then de facto all the states do. The table
also illustrates the point that the licence can be targeted at various risk points, ranging from the
business through to the individual.
Table 2
Licensing arrangements for selected occupations
Occupation
Name of
licensing body
Primary
legislation
Types of licence
Qualification requirements
Plumber (Victoria)
Plumbing Industry
Commission
Building Act 1993
Registration
The Victorian
Plumbing
Regulations 2008
Licence
Generally through the completion
of a plumbing apprenticeship but
may also gain registration or
licensing with a minimum and of
four years experience and satisfy
the Qualifications and Experience
Review Committee (QERC) of
competence.
NSW Police
Security Industry
Act 1997
Class I
Security (NSW)
For class I/2: various units of
competency by an RTO approved
by the Commissioner
Class 2
Master
Various firearms licences
For Master: certificate IV level
qualification
For firearms: safety training
course
In addition to competency
requirements there are also
various other personal
requirements such as being a fit
and proper person.
Financial Services
(Commonwealth)
Australian
Securities and
Investment
Commission (ASIC)
Corporations Act
2001
Various licences such as
a dealer’s licence,
investment advisors
licence or Broker’s
licence
The qualification licence can vary
depending on licence and level of
responsibility. Can range from
certificate III to degree.
Child care worker –
centre
based(Queensland)
Office of Early
Childhood
Education and Care
Child Care Act
2002
Licenses can be issued
to entities or individuals
and there are prescribed
qualification
requirements in regards
to :
For assistant: certificate III/IV or a
1 year qual. in early childhood or
child care studies, or a
qualification for a group leader
NCVER Report 3 final
Child Care
Regulations 2003

assistants

group leaders

directors
For group leader: a diploma or 2year qualification in early
childhood or child care studies or
a qualification for a director
For a director: an advanced
diploma or a 3-year qualification
in early childhood studies or child
care studies, or at postgraduate
qualification of at least one year
in childhood studies or childcare
Page 14
studies.
Source: Various licensing body websites.
Table 2 shows that while the selected occupations all have a licensing body and legislative
backing, the licensing arrangements vary by occupation. We see for instance that in plumbing the
path to a license is generally through an apprenticeship, while for some of the service based
occupations such as financial services the focus is on completion of a qualification (institution
based). In the security industry not all classes of licences need a full qualification and in the case
of child care, entities must be licensed and individuals can be licensed.
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In summary, the main features that arise from the description of the licensing system in Australia
are that:
 While there is a general framework for licensing, arrangements vary by occupation and within
that by state/territory.
 Most licensing requires some training arrangement. For occupational licenses a whole
qualification is generally required, whereas for some other types of licensing a whole
qualification may not be required.
 Apprenticeships would seem to be a relevant pathway to licensing in some occupations,
particularly where the training requirements are considerable and have an on-the-job
component (for example, in the traditional trades), but is not necessarily appropriate to all
types of licensing, where it may be more efficient to do the training off the job (e.g. security
and finance).
 The completion of an apprenticeship does not result in a licence, even when there is an
implied link.
The next section examines in more detail data on licensing, qualifications and apprenticeship.
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Licensing, qualifications and
apprenticeships
This section looks at some data on licensing and apprenticeships and qualifications profile by
occupation. We find that there is no clear link between licensing and apprenticeships. There are a
few reasons for this, primary among which is that apprenticeship training is not mandated for
most licensing regimes.
Table 3 shows this lack of direct link. The table looks at, for various 3-digit occupational groups,
the proportion of people within that occupational group who hold a certificate III level
qualification or higher as their highest qualification level (from 2006 census data), the numbers of
students enrolled as apprentices/trainees by comparison with other students for that
occupational group, the proportion of all students enrolled as an apprentice/trainee, and finally
whether there may be some licensing requirements within that occupational group.
In our analysis we are mainly interested in occupational licensing. Occupational licensing is more
likely to occur at the higher occupational levels (such as professionals, and technician and
tradespersons), while part or activity-based licensing is more likely to occur at the lower
occupational levels (although not exclusively).
Table 3
Licensing, apprenticeship and traineeship numbers and qualifications minor occupational
groups relevant to VET*
Occupation
Cert.
III+
(%)
No.
apprent./
trainees
No. other
students
%
apprent./
trainees
May
involve
some
licensing
121 Farmers and farm managers
28.9
1,193
10,358
10.3
131 Advertising and sales managers
62.6
3
1,497
0.2
132 Business administration managers
71.1
590
26,520
2.2
133 Construction, distribution and production managers
62.5
398
10,457
3.7
√
134 Education, health and welfare services managers
90.4
2,126
44,372
4.6
√
141 Accommodation and hospitality managers
40.6
92
12,539
0.7
√
142 Retail managers
34.9
47
1,719
2.7
√
149 Miscellaneous hospitality, retail and service managers
52.0
122
8,207
1.5
√
222 Financial brokers and dealers, and investment advisers
68.3
7
640
1.1
√
311 Agricultural, medical and science technicians
58.1
680
7,845
8.0
√
312 Building and engineering technicians
71.5
1,308
30,582
4.1
√
313 ICT and telecommunications technicians
63.3
2,129
19,512
9.8
321 Automotive electricians and mechanics
73.4
20,733
6,343
76.6
322 Fabrication engineering trades workers
62.8
12,296
3,342
78.6
323 Mechanical engineering trades workers
78.8
12,654
11,087
53.3
√
324 Panel beaters, and vehicle body builders, trimmers
68.1
4,495
931
82.8
√
331 Bricklayers, and carpenters and joiners
66.0
25,195
4,349
85.3
√
332 Floor finishers and painting trades workers
54.1
3,096
4,769
39.4
√
333 Glaziers, plasterers and tilers
48.3
4,551
916
83.2
√
334 Plumbers
74.2
10,335
6,635
60.9
√
341 Electricians
79.2
22,426
9,573
70.1
√
NCVER Report 3 final
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√
Occupation
Cert.
III+
(%)
No.
apprent./
trainees
No. other
students
%
apprent./
trainees
May
involve
some
licensing
√
342 Electronics and telecommunications trades workers
62.8
4,789
4,623
50.9
351 Food trades workers
49.8
16,669
10,109
62.2
361 Animal attendants and trainers, and shearers
30.7
1,141
6,029
15.9
362 Horticultural trades workers
46.7
4,901
8,634
36.2
391 Hairdressers
76.9
11,207
1,872
85.7
392 Printing trades workers
62.1
1,401
1,099
56.0
393 Textile, clothing and footwear trades workers
42.5
340
2,817
10.8
394 Wood trades workers
60.4
4,451
1,897
70.1
399 Miscellaneous technicians and trades workers
56.5
2,359
17,358
12.0
√
411 Health and welfare support workers
73.1
2,556
37,423
6.4
√
421 Child carers
46.4
6,132
16,056
27.6
√
422 Education aides
40.6
917
7,193
11.3
423 Personal carers and assistants
44.8
8,851
40,280
18.0
431 Hospitality workers
24.1
16,046
77,786
17.1
441 Defence force members, fire fighters and police
58.3
132
5,825
2.2
√
442 Prison and security officers
38.0
1,179
3,219
26.8
√
451 Personal service and travel workers
54.6
2,868
23,220
11.0
√
452 Sports and fitness workers
41.3
1,129
10,854
9.4
√
511 Contract, program and project administrators
64.6
283
8,163
3.4
512 Office and practice managers
39.6
4,659
16,200
22.3
521 Personal assistants and secretaries
29.9
0
147
0.0
531 General clerks
31.5
18,555
58,684
24.0
532 Keyboard operators
29.7
205
33,308
0.6
541 Call or contact centre information clerks
39.5
8,443
3,346
71.6
542 Receptionists
26.7
169
2,072
7.5
551 Accounting clerks and bookkeepers
36.1
281
18,480
1.5
552 Financial and insurance clerks
36.1
1,588
4,017
28.3
√
561 Clerical and office support workers
30.4
1
1,503
0.1
√
591 Logistics clerks
34.2
1,090
3,034
26.4
599 Miscellaneous clerical and administrative workers
47.0
1,605
9,533
14.4
√
611 Insurance agents and sales representatives
40.8
268
713
27.3
√
612 Real estate sales agents
48.9
1,329
10,130
11.6
√
621 Sales assistants and salespersons
20.6
33,982
15,801
68.3
631 Checkout operators and office cashiers
12.8
0
0
0
639 Miscellaneous sales support workers
31.7
4
463
0.9
711 Machine operators
24.4
2,536
2,689
48.5
712 Stationary plant operators
33.6
1,591
11,541
12.1
721 Mobile plant operators
22.2
2,205
5,175
29.9
√
731 Automobile, bus and rail drivers
34.5
385
2,039
15.9
√
732 Delivery drivers
24.1
5,879
5,276
52.7
√
733 Truck drivers
23.7
0
219
0.0
√
741 Storepersons
21.8
6,335
5,454
53.7
√
811 Cleaners and laundry workers
18.5
4,926
3,439
58.9
NCVER Report 3 final
Page 18
√
√
Occupation
Cert.
III+
(%)
No.
apprent./
trainees
No. other
students
%
apprent./
trainees
821 Construction and mining labourers
28.3
1,549
26,509
5.5
831 Food process workers
20.8
9,584
7,861
54.9
832 Packers and product assemblers
17.7
753
3,863
16.3
839 Miscellaneous factory process workers
21.9
1,328
21,057
5.9
841 Farm, forestry and garden workers
23.1
3,245
29,049
10.0
851 Food preparation assistants
13.6
527
13,135
3.9
891 Freight handlers and shelf fillers
15.5
303
450
40.2
899 Miscellaneous labourers
29.8
2,653
23,765
10.0
Source: NCVER’s National Provider Collection, students and courses 2007 data, and ABS 2006 census data online,
*Note that the apprentice and student numbers are from 2007 as ANZSCO information on students was not yet available in
2006. However this does not deflect from the argument that we are making.
As mentioned, one of the main reasons for the lack of a direct link between licensing and
apprenticeships is that apprenticeship training is not mandated for most licensing regimes. If we
refer to the example of electricians in table 1, we see that while apprenticeship training is the
main pathway in some states, there are other pathways to the qualification available in other
states. Table 2 also indicates that apprenticeship training is not mandated for licensing. Further,
we can see from table 3 that even in licensed occupations there are considerable numbers
without certificate III level or above qualifications.
Secondly, if we look at the traditional trades, licensed occupations (including electricians,
automotive electricians and mechanics, and plumbers) have high numbers of apprentice/trainee
students by comparison with other students but so do other traditional trades that do not have
any licensing requirements, such as fabrication engineering trades workers, food trades workers,
and hairdressing. Clearly, there are other factors that sustain high training rates in these
occupations. These could be related to the type of work, the requirement for on-the-job training,
cultural and historical factors, or a combination of all of these.
It is also worth mentioning that the three occupational groupings within trade and technicians
that are technician occupations have low proportions of students taking the apprenticeship route.
Although two of these three technical occupational groupings may have some licensing
requirements, it would appear that the requisite qualifications are obtained in other ways
(probably an institutional pathway).
Some of the growing service sector occupations require licensing but few have high numbers of
apprentice/trainee students. Financial brokers and dealers and investment advisers, health and
welfare support workers, child carers and personal carers and assistants, prison and security
officers, and personal service and travel workers all may require licensing but have relatively small
proportions of students who are apprentices/trainees. In the non-trades occupations that require
occupational licensing there are other factors at play. For example, the introduction of the
Financial Services Reform Act (2004) requires that businesses providing financial services hold an
‘Australian Financial Services Licence’.3 However, there is no tradition of apprenticeship training
within this industry, as is reflected by there being virtually no students who are
apprentices/trainees for this occupational group (222 Financial brokers and dealers, and investment
advisers) in table 3. We see however that quite a large proportion of people in this occupational
group hold a certificate III level qualification or higher (about 68%). One could argue that the
required qualifications are more efficiently obtained through an institutional pathway.
3
See <http://www.bankers.asn.au/Default.aspx?ArticleID=903>.
NCVER Report 3 final
Page 19
May
involve
some
licensing
√
√
Another example of a licensed non-trades occupational group with low proportions of students
taking the apprenticeship/traineeship pathway (6.4%) is 411 Health and welfare support workers
(which includes enrolled and mothercraft nurses). What we see, however, is a high proportion of
people in this occupation with certificate III or higher levels qualifications (73%—the highest
among community and personal service workers). What this means is that the licensing
arrangements in this occupational group would influence the qualification profile, but not
apprenticeship/traineeship training.
We need to keep in mind that the numbers of people actually licensed in an occupation may also
not be reflective of the census data on that occupation. There will be cases, for instance, where
the licensing takes place above the level of a particular individual (refer back to figure 2). Even in
the case of occupations such as electricians (where about 20% do not have certificate III or
higher-level qualifications), there will be those who are not licensed but whose work is supervised
by a licensed electrician.
Another point to make is that not all types of licensing require qualifications. While we focus
mainly on occupational licensing, we saw that activity-based licensing (e.g. operation of a piece of
equipment) does not necessarily require a qualification and therefore would be of little relevance
to the apprenticeship/traineeship system. We see for instance that 712 Stationary plant operators has
a fairly low proportions of students who are apprentices/trainees (about 12%) and, further, the
qualification profile for this occupation indicates that only about a third have certificate III or
higher qualifications. The training for some of these occupations may require only the
completion of certain units of competence or the training may take place outside the formal VET
system.
Table 4 shows the number of commencing apprentices for the same occupational groups as in
the previous table, ordered by size of number of commencing apprentices and trainees.
Occupations with an asterisk alongside them are those where some licensing arrangements may
apply.
Table 4
Number of commencing apprentices and trainees for 2006 by occupational group and
sorted by size
Occupation
No. of
Commen.
Occupation
No. of
Commen.
621 Sales assistants and salespersons
37805
313 ICT and telecommunications technicians
1548
531 General clerks
15223
839 Miscellaneous factory process workers
1428
512 Office and practice managers
15214
712 Stationary plant operators
1368
431 Hospitality workers
14632
399* miscellaneous technicians and trades
workers
1296
741 Storepersons
10439
821* Construction and mining labourers
1196
331* Bricklayers, and carpenters and
joiners
10412
452* Sports and fitness workers
1147
831 Food process workers
10223
832 Packers and product assemblers
956
9277
121 Farmers and farm managers
915
423* Personal carers and assistants
8857
311* Agricultural, medical and science
technicians
906
541 Call or contact centre information
clerks
8610
134* Education, health and welfare services
managers
886
321* Automotive electricians and
mechanics
8340
361* Animal attendants and trainers, and
shearers
823
732* Delivery drivers
8216
611* Insurance agents and sales representatives
750
341* Electricians
7871
392 Printing trades workers
670
351 Food trades workers
NCVER Report 3 final
Page 20
Occupation
711 Machine operators
No. of
Commen.
Occupation
No. of
Commen.
5934
422 Education aides
565
322 Fabrication engineering trades workers
5615
511 Contract, program and project
administrators
558
391 Hairdressers
5374
851 Food preparation assistants
544
323* Mechanical engineering trades
workers
4937
393 Textile, clothing and footwear trades
workers
301
334* Plumbers
4904
441* Defence force members, fire fighters and
police
301
421* Child carers
4430
532 Keyboard operators
183
552* Financial and insurance clerks
3768
731* Automobile, bus and rail drivers
174
411* Health and welfare support workers
3106
551 Accounting clerks and bookkeepers
171
841* Farm, forestry and garden workers
3099
149* Miscellaneous hospitality, retail and service
managers
166
362 Horticultural trades workers
2876
142* Retail managers
154
899 Miscellaneous labourers
2873
312* Building and engineering technicians
149
442* Prison and security officers
2678
891 freight handlers and shelf fillers
115
591 Logistics clerks
2496
133* construction, distribution and production
managers
113
342* Electronics and telecommunications
trades workers
2477
542 Receptionists
95
333* Glaziers, plasterers and tilers
2469
131 Advertising and sales managers
51
451* Personal service and travel workers
2390
639 Miscellaneous sales support workers
27
599* Miscellaneous clerical and
administrative workers
2317
141* Accommodation and hospitality managers
7
324* Panelbeaters, and vehicle body
builders, trimmers and painters
2196
222* Financial brokers and dealers, and
investment advisers
0
394 Wood trades workers
1969
521 Personal assistants and secretaries
0
721* Mobile plant operators
1943
561* Clerical and office support workers
0
332* Floor finishers and painting trades
workers
1601
631 Checkout operators and office cashiers
0
612* Real estate sales agents
1577
733* Truck drivers
0
Source: NCVER Apprentice and Trainee Collection no. 63 (March 2010 estimates).
We see that, of the ten occupations with the highest numbers of commencing apprentices only
two have any licensing requirements (bricklayers, carpenters and joiners; and personal carers and
assistants). We see, in contrast, that financial brokers and dealers, as an example of a licensed
occupation, had no commencing apprentices in 2006.
NCVER Report 3 final
Page 21
Conclusions
This paper has examined the basis for licensing arrangements in Australia. We see that, while
there are similarities across occupations in terms of the need for underlying legislation and
licensing bodies, there are differences in terms of the types of licenses that are issued and the
ways in which the requirements of a licence can be achieved. A broad analysis of data on
licensing in occupations, the qualification profiles of occupations and the extent of
apprenticeship arrangements in occupations results in the following observations:
 There is no clear link between licensing and apprenticeships. Licences in occupations may be
achieved through apprenticeships (and in some cases is the general pathway) but not
necessarily. The use of apprenticeships seems to be more prevalent in some occupations than
others.
 Apprenticeships for licensed occupations seem to be more suitable in the traditional trades
because of the amount of time it takes to get the appropriate qualifications and on-the-job
experience for these occupations—about four years.
 Even so, the structural arrangements and culture within an occupation may have more to do
with apprenticeship pathways than any licence requirement. In some occupations, institutionbased methods may be a more appropriate and efficient way to obtain the qualification for the
licence.
 Licensing arrangements are more likely to affect the qualifications profile of an occupation
rather than the use of apprenticeships.
 In some occupations an apprenticeship pathway is not necessary due to the small amount of
training required to attain the licence, in some cases not even necessitating the completion of
a qualification.
NCVER Report 3 final
Page 22
References
ABS (Australian Bureau of Statistics) 2006, ANZSCO – Australian and New Zealand Standard Classification of
Occupations, 1st edn, cat.no.1220.0, Canberra.
ANTA (Australian National Training Authority) 2002 A licence to skill: the implications of industry licensing for the
implementation of training packages, viewed July 1010,
<http://www.dest.gov.au/sectors/training_skills/publications_resources/profiles/anta/profile/a_lice
nce_to_skill_full_report.htm>.
Eikenloff, P & Porter, R 2003 Stairway to a license and beyond – licensing issues national project, volume 2, ANTA
and Queensland Government, Department of Employment and Training, Brisbane.
NCVER Report 3 final
Page 23
Appendix: Occupations that do or
may require licensing
Table A1
Occupations that do or may require registration or licensing
Occupation
1331 – Construction managers
Registration or
licensing is
required
√
1342 – Health and welfare services managers
1343 – School principals
Registration or
licensing may be
required
Expected qualification level
Bachelor or higher
√
√
Bachelor or higher
Bachelor or higher
1412 – Caravan park managers
√
1413 – Hotel and motel managers
√
Associate degree,
Diploma, advanced diploma
Associate degree,
Diploma, advanced diploma
1414 – Licensed club managers
√
Associate degree,
Diploma, advanced diploma
1419 – Other accommodation and hospitality
managers
√
1421 – Retail managers
√
Associate degree,
Diploma, advanced diploma
Associate degree,
Diploma, advanced diploma
142113 – Betting agency manager
√
Associate degree,
Diploma, advanced diploma
1494 – Transport services managers
√
1499 – Other hospitality, retail and service
managers
√
2211 – Accountants
√
Associate degree,
Diploma, advanced diploma
Associate degree,
Diploma, advanced diploma
221111 – Accountant (general)
√
221112 – Management accountant
√
2212 – Auditors, company secretaries and
corporate treasurers
Bachelor or higher
Bachelor or higher
√
221213 – External auditor
√
221214 – Internal auditor
√
2221 – Finance brokers
Bachelor or higher
Bachelor or higher
Bachelor or higher
Bachelor or higher
√
Associate degree,
Diploma, advanced diploma
222112 – Finance broker
√
Associate degree,
Diploma, advanced diploma
2222 – Financial dealers
222211 – Financial market dealer
√
222212 – Futures trader
√
222213 – Stockbroking dealer
√
√
Bachelor or higher
√
Bachelor or higher
Bachelor or higher
Bachelor or higher
2223 – Financial investment advisors and
managers
√
Bachelor or higher
2241 – Actuaries, mathematicians and
statisticians
√
Bachelor or higher
224111 – Actuary
√
Bachelor or higher
2242 – Archivists, curators and record
managers
√
Bachelor or higher
2245 – Land economists and valuers
√
Bachelor or higher
NCVER Report 3 final
Page 24
Occupation
Registration or
licensing is
required
Registration or
licensing may be
required
Expected qualification level
2246 – Librarians
√
Bachelor or higher
2249 – Other information and organisational
professionals
√
Bachelor or higher
2311 – Air transport professionals
√
Diploma or higher
2312 – Marine transport professional
√
Diploma or higher
2321 – Architects and landscape architects
232111 – Architect
√
√
Bachelor or higher
Bachelor or higher
2322 – Cartographers and surveyors
√
Bachelor or higher
2331 – Chemical and materials engineers
√
Bachelor or higher
√
Bachelor or higher
2332 – Civil engineering professionals
233213 – Quantity surveyor
√
Bachelor or higher
2333 – Electrical engineers
√
Bachelor or higher
2334 – Electronics engineer
√
Bachelor or higher
2335 – Industrial, mechanical and production
engineers
√
Bachelor or higher
2336 – Mining engineers
√
Bachelor or higher
2339 – Other engineering professionals
√
Bachelor or higher
233915 – Environmental engineer
2347 – Veterinarians
√
Bachelor or higher
√
Bachelor or higher
2349- Other natural and physical science
professionals
√
Bachelor or higher
2411 – Early childhood teachers
√
Bachelor or higher
√
Bachelor or higher
2412 – Primary school teachers
241111 – Early childhood teacher
√
Bachelor or higher
241213 – Primary school teacher
√
Bachelor or higher
2413 – Middle school teachers
√
Bachelor or higher
2414 – Secondary school teachers
√
Bachelor or higher
2415 – Special education teachers
√
2421 – University lecturers and tutors
2422 – Vocational education teachers
√
2512 – Medical imaging professionals
251211 – Medical diagnostic
radiographer
251212 – Medical radiation therapist
251213 – Nuclear medicine
technologist
Bachelor or higher, postgraduate
diploma in adult education
√
Bachelor or higher
Bachelor or higher
√
Bachelor or higher
√
Bachelor or higher
√
2514 – Optometrists and orthoptists
√
2515 – Pharmacists
√
2519 – Other health diagnostic and promotion
professionals
Bachelor or higher
√
Bachelor or higher
Bachelor or higher
√
√
2524 – Occupational therapists
Bachelor or higher
Bachelor or higher
√
2522 – Complementary health therapists
2523 – Dental practitioners
Bachelor or higher
√
2513 – Occupational and environmental health
professional
2521 – Chiropractors and osteopaths
Bachelor or higher
√
Bachelor or higher
Bachelor or higher
√
Bachelor or higher
2525 – Physiotherapists
√
Bachelor or higher
2526 – Podiatrists
√
Bachelor or higher
2527 – Speech professionals and audiologists
√
Bachelor or higher
NCVER Report 3 final
Page 25
Occupation
Registration or
licensing is
required
Registration or
licensing may be
required
Expected qualification level
2531 – Generalist medical practitioners
√
Bachelor or higher
2532 – Anaesthetists
√
Bachelor or higher
2533 – Internal medicine specialists
√
Bachelor or higher
2534 – Psychiatrists
√
Bachelor or higher
2535 – Surgeons
√
Bachelor or higher
2539 – Other medical practitioners
√
Bachelor or higher
2541 – Midwives
√
Bachelor or higher
2543 – Nurse managers
√
Bachelor or higher
2544 – Registered nurses
√
Bachelor or higher
2711 – Barristers
√
2712 – Judicial and other legal professionals
2713 – Solicitors
Bachelor or higher
√
√
Bachelor or higher
Bachelor or higher
2722 – Ministers of religion
√
Bachelor or higher
2723 – Psychologists
√
Bachelor or higher
272311 – Clinical psychologist
√
Bachelor or higher
272312 – Educational psychologist
√
Bachelor or higher
272313 – Organisational psychologist
√
Bachelor or higher
272399 – Psychologists nec
√
Bachelor or higher
2725 – Social workers
√
Bachelor or higher
3112 – Medical technicians
√
Associate degree,
Diploma, advanced diploma
3121 – Building, architectural and surveying
technicians
312115 – Plumbing inspector
√
Associate degree,
Diploma, advanced diploma
√
Associate degree,
Diploma, advanced diploma
3122 – Civil engineering draftspersons and
technicians
√
3123 – Electrical engineering draftspersons and
technicians
√
3124 – Electronic engineering draftspersons
and technicians
√
3129 – Other building and engineering
technicians
√
3211 – Automotive electricians
√
Certificate III/IV
3212 – Motor mechanics
√
Certificate III/IV
3231 – Aircraft maintenance engineers
√
Certificate III/IV
3233 – Precision metal trade workers
√
Certificate III/IV
Associate degree,
Diploma, advanced diploma
Associate degree,
Diploma, advanced diploma
Associate degree,
Diploma, advanced diploma
Associate degree,
Diploma, advanced diploma
323312 – Gunsmith
√
Certificate III/IV
323313 – Locksmith
√
Certificate III/IV
3241 – Panel beaters
√
Certificate III/IV
3242- Vehicle body builders and trimmers
√
Certificate III/IV
3243 – Vehicle painters
√
Certificate III/IV
3311 – Bricklayers and stonemasons
√
Certificate III/IV
3312 – Carpenters and joiners
√
Certificate III/IV
3321 – Floor finishers
√
Certificate III/IV
3332 – Plasterers
√
Certificate III/IV
3333 – Roof tilers
√
Certificate III/IV
3334 – Floor and wall tilers
√
Certificate III/IV
NCVER Report 3 final
Page 26
Occupation
Registration or
licensing is
required
Registration or
licensing may be
required
Expected qualification level
3341 – Plumbers
√
Certificate III/IV
3411 – Electricians
√
Certificate III/IV
3421 – Air-conditioning and refrigeration
mechanics
√
Certificate III/IV
3422 – Electrical distribution trades workers
√
Certificate III/IV
3423 – Electronic tradespersons
√
Certificate III/IV
3611 – Animal attendants and trainers
√
Certificate III/IV
√
Certificate III/IV
3991 – Boat builders and shipwrights
399112 – Shipwrights
√
3992 – Chemical, gas, petroleum and power
generation plant operators
399213 – Power generation plant operator
Certificate III/IV
√
√
Certificate III/IV
Certificate III/IV
3996 – Signwriters
√
Certificate III/IV
3999 – Other miscellaneous technicians and
trades workers
√
Certificate III/IV
4111 – Ambulance officers and paramedics
√
Associate degree,
Diploma, advanced diploma
4112 – Dental hygienists, technicians and
therapists
√
Associate degree,
Diploma, advanced diploma
411211 – Dental hygienist
√
411212 – Dental prosthetist
√
Associate degree,
Diploma, advanced diploma
Associate degree,
Diploma, advanced diploma
411214 – Dental technician
√
Associate degree,
Diploma, advanced diploma
4113 – Diversional therapists
√
Associate degree,
Diploma, advanced diploma
4114 – Enrolled and mothercraft nurses
√
Associate degree,
Diploma, advanced diploma
4115 – Indigenous health workers
√
Associate degree,
Diploma, advanced diploma
4211 – Child carers
√
Certificate II or III
4233 – Nursing support and personal care
workers
√
Certificate II or III
4234 – Special care workers
√
Certificate II or III
4412 – Fire and emergency workers
√
Certificate III/IV
√
Certificate III/IV
4422 – Security officers and guards
441212 – Fire fighter
√
Certificate I or compulsory secondary
education
442214 – Private investigator
√
Certificate I or compulsory secondary
education
4512 – Driving instructors
√
4513 – Funeral workers
Certificate III/IV
√
Associate degree,
Diploma, advanced diploma
4518 – Other personal services workers
451811 – Civil celebrant
√
Certificate II or III
√
Certificate II or III
4523 – Sports coaches, instructors and officials
√
Certificate III/IV
4524 – Sportspersons
√
5523 – Insurance, money market and statistical
clerks
NCVER Report 3 final
Certificate III/IV
√
Certificate II or III
Page 27
Occupation
552311 – Bookmaker
Registration or
licensing is
required
√
Expected qualification level
Certificate II or III
√
5611– Betting clerks
561112 – Bookmaker’s clerk
Registration or
licensing may be
required
√
Certificate I or compulsory secondary
education
Certificate I or compulsory secondary
education
5991 – Conveyancers and legal executives
√
5993 – Debt collectors
√
Certificate II or III
√
Certificate II or III
Associate degree,
Diploma, advanced diploma
5995 – Inspectors and regulatory officers
599513 – Motor vehicle license
√
Certificate II or III
examiner
5996 – Insurance investigators, loss adjustors
and risk surveyors
599611 – Insurance investigator
√
√
Certificate III/IV
Certificate III/IV
5999 – Other miscellaneous clerical and
administrative workers
√
Certificate II or III
6111 – Auctioneers and stock and station
agents
√
Certificate III/IV
611111 – Auctioneers
6112 – Insurance agents
√
Certificate III/IV
√
Certificate III/IV
6121 – Real estate sales agents
√
Certificate III/IV
612113 – Real estate principal
√
Certificate III/IV
612114 – Real estate agent
√
Certificate III/IV
612115 – Real estate representative
√
Certificate III/IV
√
Certificate II or III
7121 – Crane, hoist and lift operators
7122 – Drillers, miners and shot firers
7123 – Engineering production systems worker
√
√
7211 – Agricultural, forestry and horticultural
plant workers
7212 – Earth moving plant operators
Certificate II or III
√
√
7213 – Forklift drivers
Certificate II or III
Certificate II or III
Certificate II or III
√
Certificate II or III
7219 – Other mobile plant operators
√
Certificate II or III
7311 – Automobile drivers
√
Certificate II or III
7312 – Bus and coach drivers
√
Certificate II or III
7313 – Train and tram drivers
√
Certificate II or III
7321 – Delivery drivers
√
Certificate II or III
7331 – Truck drivers
√
Certificate II or III
8214 – Insulation and home improvement
installers
√
Certificate II or III
8217 – Structural steel construction workers
√
Certificate II or III
8413 – Registration and licensing may be
required
√
Certificate II or III
8419 – Other farm, forestry and garden workers
√
Certificate I or compulsory secondary
education
NCVER Report 3 final
Page 28
Award structures
Damian Oliver
NCVER Report 3 final
Page 29
Introduction
The apprenticeship model combines a contract of training with a contract of employment. One
important element of the model is that apprentices and trainees receive a training wage. Clearly a
variety of aspects relating to pay and conditions is important to the attractiveness of undertaking
(and completing) an apprenticeship or traineeship. For example:
 The perceived low levels of pay are a disincentive for young people who might otherwise
enter into an apprenticeship (Misko, Nguyen & Saunders 2007).
 Work-related factors such as pay, hours, other employment conditions and the organisational
culture are the most common reasons given by apprentices and trainees for not completing
their apprenticeship (Cully & Curtain 2001; Grey et al. 1999; Callan 2001, Snell & Hart 2008).
 Apprentices are more likely to complete their training if the wage they can expect to receive
on completion is higher than the wage they could expect in alternative employment, and male
trainees are less likely to complete their training if the wage they can expect to receive in
alternative employment is higher than the training wage (Karmel & Mlotkowski 2010).
 Workers are discouraged from engaging in further training (including apprenticeships and
traineeships) if their qualifications will not lead to an increase in pay.
Awards are the basis of pay and conditions—hence this report provides an overview of how
awards connect with apprenticeships and traineeships. A total of 122 modern awards will set the
employment conditions for the vast majority of apprentices and trainees, either directly or
indirectly, by providing a floor for conditions contained in collective agreements. Once former
state awards (referred to as Division 2B Awards in the Fair Work [Transitional Provisions and
Consequential Amendments] Act 2009) expire, the proportion of apprentices and trainees covered by
modern awards will increase further.
An analysis of the provisions relating to apprentices and trainees has been conducted for each of
the 122 modern awards. Attention has been paid to the following matters:
 the pay rates and relativities for apprentices at all stages4
 whether apprentices and trainees are entitled to allowances, paid at either the full rate or a
proportion
 the rules governing progression through the apprenticeship or traineeship, being time-based
or competency-based progression
 whether separate pay rates are included for adult apprentices
 whether other factors, such as highest level of education, are taken into account in
determining pay rate or apprentice stage.
The findings establish:
 The trainee wage contained in the National Training Wage ranges from 45% of the national
minimum wage to 91% of the national minimum wage, depending on highest level of
schooling, years since left school, and qualification.
The report here, intended as an overview covering differences between occupations and industries, disregards the transitional
arrangements in place to phase in rates of pay in modern awards. Existing employees (including apprentices and trainees) will likely
not be going straight onto the new rates but phasing up or down depending on their pre-modern award arrangements. Modern award
wage rates will be phased in over five years.
4
NCVER Report 3 final
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 Most awards pay apprentices a portion of the qualified trades rate, which in nearly all cases is
based on the rate for the C10 classification in the Manufacturing Awards.
 The relativity for a first-year apprentice in a standard four-year apprenticeship ranges from
37.5% to 55% of the relevant tradesperson rate.
 The relativity for a fourth year apprentice ranges from 82% to 95% of the relevant
tradesperson rate.
 A third of awards provide for apprentices to receive tool allowances, most commonly at the
same rate received by tradespeople.
 A smaller number of awards pay apprentices some form of industry allowance.
 Few modern awards currently provide for competency-based progression, preferring instead
time-based provisions.
 Few modern awards provide for adult apprentices to receive a higher rate of pay.
 Few modern awards currently take previous educational experience, including completion of a
pre-apprenticeship program, into account when determining pay and apprentice stage.
In examining award entitlements, we are analysing only the minimum conditions required by law.
It has been often contended that the low level of apprentice pay is a significant barrier to
increasing the number of people successfully completing apprenticeships and traineeships.
Bittman et al. (2006) identified that the award pay rates for first-year apprentices in six
representative occupations were all below the Henderson Poverty Line. However, minimum
wages contained in awards are just that—minima—and employers have always been free to pay
employees higher wages if they choose. The latest data from the Employee Earnings and Hours
survey indicates around a third of all workers covered by awards receive above-award payments.
A survey by the Australian Chamber of Commerce and Industry suggested that a majority of
their members paid some or all of their apprentices above-award wages (Australian Chamber of
Commerce and Industry 2005).
The report goes on to examine the extent of over-award payments, using data from the Survey of
Education and Training, conducted by the Australian Bureau of Statistics (ABS) in 2009. This
period precedes the commencement of modern awards, so we match earnings data for
individuals to the rate of pay contained in the relevant pre-reform federal award or Notional
Agreement Preserving a State Award (NAPSA), taking into account occupation, age, stage of
apprenticeship, and highest level of education.
With these data, we establish that most apprentices in trade occupations receive pay in excess of
the relevant federal award rate. We find that above-award payments are most common in trade
occupations with strong demand and high levels of collective bargaining by employees—
electrical and engineering and automotive. Where there are higher rates of award dependence by
employees, as in the food trades and hairdressing, we find that wages are closer to the award
rates. We also find that many trainees receive above-award rates. However, this is influenced by
existing workers, who receive well in excess of the relevant training wage. New workers,
particularly younger trainees, are more likely to receive close to the relevant award rates.
NCVER Report 3 final
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Employment arrangements of
apprentices and trainees
The working arrangements of apprentices and trainees are central to evaluating the effectiveness
of the apprenticeship model. Unlike other forms of vocational education and training, an
apprenticeship combines a contract of training with a contract of employment. Work-based
reasons are frequently cited as the reason why apprentices and trainees may not complete their
training (Cully & Curtain 2001; Grey et al. 1999; Callan 2001). Among the various factors
identified are wage rates, allowances, reimbursement of training expenses, and regulation of
working hours (see Oliver 2009).
The level of apprentice wages has attracted particular attention, with frequent calls for the level
of apprentice pay to be increased. Low wages are a particular factor for apprentices in the early
stages of their training. One 2006 study found that the award pay rates for first-year apprentices
in six representative occupations were all below the Henderson Poverty Line (Bittman et al.
2006).
Karmel and Mlotkowski (2010) examined the impact of wages on the probability of completion.
They found that the gap between the training wage and the wage in alternative employment and
the gap between the wage in alternative employment and the wage on completion have a limited
effect on completion. For apprentices it is the premium attached to completion that matters.
This suggests the pay of apprentices is not the issue that many make it—at least in terms of
completion rates. However, it could still be the case that the number of applicants for an
apprenticeship will be affected by apprentice wage rates. Karmel and Mlotkowski also show that
trainee wage rates are an issue for the completion rates of male trainees. Hence, apprentice and
trainee wage rates (and conditions) are certainly worth serious consideration.
There are two reasons why modern awards are an apt starting point for the analysis of
apprentices’ and trainees’ employment conditions. Awards remain the predominant instrument
under which apprentices and trainees are employed. Second, the standards set in awards are also
relevant for apprentices and trainees who have their conditions set by enterprise agreements.
Under the Fair Work Act, an enterprise agreement may deviate from the terms included in the
relevant award but must leave an employee ‘better off overall’ (Fair Work Act 2009, s 186). Table
1 shows the employment arrangements for apprentices and trainees who commenced in 2009,
using data extracted from the Training and Youth Information Management System (TYIMS)
administered by the Department of Education, Employment and Workplace Relations
(DEEWR). The results indicate that two-thirds of apprentices and trainees who commenced in
2009 were covered by a federal or state award. Awards are even more important for apprentices
in the traditional trades areas, covering three-quarters of apprentices who commenced in 2009.
Fewer than one in 20 apprentices and trainees were covered by an Australian Workplace
Agreement (AWA). Since AWAs could no longer be made after March 2008, these presumably
refer either to their temporary successor, Individual Transitional Employment Agreements, or to
existing workers covered by AWAs who entered into a contract of training.
NCVER Report 3 final
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Table 1
Apprenticeship contracts by employment instrument, 2009 commencements
Occupation
Federal
or state
award
Certified
Agreement
Australian
Workplace
Agreement
Other1
Total
%
%
%
%
%
1 Managers
76
12
2
10
100
2 Professionals
55
31
3
11
100
3 Technicians and trades workers
78
9
2
10
100
31 Engineering, ICT and Science Technicians
62
14
4
20
100
32 Automotive and Engineering Trades Workers
80
8
2
11
100
33 Construction Trades Workers
88
6
1
5
100
34 Electrotechnology and telecommunications
trades workers
72
13
1
13
100
35 Food trades workers
76
12
2
9
100
36 Skilled animal and horticultural workers
84
5
1
9
100
39 Other technicians and trades workers
75
9
3
13
100
391 Hairdressers
94
4
0
2
100
4 Community and personal service workers
76
11
2
10
100
5 Clerical and administrative workers
61
13
5
22
100
6 Sales workers
65
21
4
10
100
7. Machinery operators and drivers
49
18
10
23
100
8 Labourers
56
22
5
18
100
2
68
14
4
14
100
Total
Notes:
1 Other includes State Workplace Agreements.
2 Total includes apprenticeships not allocated to any occupation code.
Source: Data extracted from TYIMS; DEEWR, August 2010.
Since 1 January 2010, a set of 122 modern awards form the benchmark for employees covered by
the national workplace relations system. The national system covers all employees employed by
constitutional corporations, all employees in Victoria, the Northern Territory and the Australian
Capital Territory, federal government employees, employees of unincorporated bodies in New
South Wales, Queensland, South Australia and Tasmania, and certain other categories of
employees. The main categories of workers not covered by the national system are state
government employees (except in Victoria) as well as private sector employees in Western
Australia (except those working for constitutional corporations). The referral of all private sector
coverage in most states means that well over 85% of the Australian workforce is covered by the
national system.
Modern awards have replaced pre-reform federal awards and Notional Agreements Preserving
State Awards and Australian Pay and Classification Scales. NAPSAs were created as part of the
former Work Choices system to cover conditions of employment, excluding rates of pay, for
employers and employees who were until 2006 covered by the state industrial relations systems
(mainly constitutional corporations). NAPSAs took the terms of the relevant state awards, except
for provisions that the Work Choices legislation deemed to be prohibited content. Prohibited
content included anti-AWA clauses and restrictions on the range or duration of apprenticeships.
The Work Choices changes also removed pay scales from awards and NAPSAs, creating a
separate pay scale instrument (Australian Pay and Classification Scales). At the same time, the
reforms transferred wage-setting powers from the Australian Industrial Relations Commission to
the Australian Fair Pay Commission. Modern awards will also soon apply to the smaller group of
employers and employees working for unincorporated private sector businesses that were
NCVER Report 3 final
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brought into the national system by the Fair Work Act from 1 January 2011. In the meantime, the
terms of the state awards continue to apply.5
Awards continue to distinguish between apprentices and trainees. The conditions for apprentices
are contained within the main body of the award relating to the relevant occupation or industry
of that apprenticeship. The employment arrangements for trainees reflect their more recent
history. With a few exceptions, trainees are covered by the same Training Wage Schedule. The
National Training Wage Award was made in 1994, and following award simplification a new
award was made in 2000. Commissions in the state jurisdictions made their own training wage
awards along similar lines. Traineeships in the training wage schedule are allocated to wage levels
based on training package and qualification level. The arrangements for school-based
apprenticeships are usually contained in a standard schedule to the main award, in the same
manner as the training wage schedule.
A content analysis was conducted of all 122 modern awards.
 95 awards include the National Training Wage Schedule.
 49 awards include the School Based Apprentices Schedule.
 45 awards include rates of pay for apprentices
 21 awards include at least one other provision relating to employment conditions for
apprentices, such as restrictions on overtime or reimbursement of training-related expenses.
A list of all modern awards that include provisions relating to apprentices or trainees is included
in table A1 in the appendix.
Some provisions of pre-reform awards and NAPSAs continue to have effect for apprentices and trainees and their employers
formerly covered by these instruments as a result of transitional arrangements. These relate to the supply of tools and competencybased training arrangements and are detailed later in this report.
5
NCVER Report 3 final
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Award wage rates and relativities
Trainees
We look first at the wage rates for trainees, which under the modern award system are set by the
National Training Wage Schedule, which is appended to 95 of 122 awards. The training wage
rates are published as amounts, but are based on proportions of the national minimum wage
(rounded to the nearest dollar). These proportions were initially set in 1994, when the precursor
National Training Wage was made. Other reports have covered in detail how traineeships are
predominantly used in the sales, clerical and administrative, community and personal services and
machinery operator and driver occupational categories.
Rather than a single national training wage, different rates of pay apply, depending on the
qualification level, the training package, the highest level of schooling completed and the number
of years since the trainee left school.
Most traineeships covered by the National Training Wage are at the certificate I, certificate II or
certificate III level. The training wage schedule divides traineeships for these qualifications into
three wage levels on the basis of training package and qualification level.
Wage Level A pays the highest wage includes all certificate I–III qualifications from the Business
Services, Financial Services, Manufacturing, Maritime and Tourism, Hospitality and Events
training packages, higher-level (certificate III) qualifications from the Beauty and Retail Services
training packages, and various other qualifications from other training packages.
Wage level B includes all level qualifications from the Animal Care and Management, Meat
Industry, Automotive Retail Service and Repair, Entertainment, Forest and Forest Products
Industry, Furnishing, Outdoor Recreation, Property Services, and Sugar Milling Industries
packages. Wage Level B also covers certificate I–II qualifications in the retail services industry.
Wage Level C, the lowest, comprises mainly training packages from primary industries, such as
Agri-Food, Conservation and Land Management, Rural Production and Seafood Industry.
Within each wage level, rates of pay differ according to the highest level of schooling completed
and the number of years since the trainee completed school. The pay rates are set out in table 2.
NCVER Report 3 final
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Table 2
Training wage schedule rates of pay, as proportion of National Minimum Wage, July 2010
Highest yr of schooling
Yr 10
Yr 11
Yr 12
%
%
%
School leaver
45
49
59
Plus 1 yr out of school
49
59
69
Plus 2 yrs out of school
59
69
80
Plus 3 yrs out of school
69
80
91
Plus 4 yrs out of school
80
91
Plus 5 yrs out of school
91
Wage Level A
Wage level B
School leaver
45
49
57
Plus 1 yr out of school
49
57
66
Plus 2 yrs out of school
57
66
77
Plus 3 yrs out of school
66
77
88
Plus 4 yrs out of school
77
88
Plus 5 yrs out of school
88
Wage level C
School leaver
45
49
57
Plus 1 yr out of school
49
57
65
Plus 2 yrs out of school
57
65
72
Plus 3 yrs out of school
65
72
80
Plus 4 yrs out of school
72
80
Plus 5 yrs out of school
80
Source: National Training Wage Schedule.
A full-time traineeship is based on 38 ordinary hours a week, with 20% of ordinary hours to be
spent in approved training. This training may occur on or off the job, in accordance with the
training contract. The hourly rate for part-time trainees is 1/38 of the weekly rate, with an
additional 20% loading to take into account the notional time spent in training. Part-time trainees
are not paid for time spent in training.
Different arrangements apply to trainees undertaking certificate level IV traineeships, and schoolbased traineeships. A trainee undertaking a certificate level IV traineeship is paid the rate for the
corresponding certificate level III traineeship, with an additional loading of 3.9%. Adult trainees
undertaking a certificate level IV traineeship are paid according to the following proportions:
NCVER Report 3 final
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Table 3
2010
Wage levels as proportion of National Minimum Wage for certificate IV traineeships, July
Wage level
First year
Subs yrs
%
%
Wage level A
95
99
Wage level B
92
95
Wage level C
83
87
Source: National Training Wage Schedule.
School-based traineeships
The rate for school-based trainees is based on their current level of schooling. In addition, the
schedule provides for school-based trainees to receive a 25% loading in lieu of paid annual leave,
paid sick leave, and other entitlements.
Table 4
2010
Wage levels as proportion of National Minimum Wage for school-based traineeships, July
All wage levels
Yr 11 or lower
Yr 12
%
%
59
65
Source: National Training Wage Schedule.
Existing workers
The rates of pay outlined above do not necessarily apply to existing workers who commence a
traineeship. The training wage schedule (Cl 5.3 [a]) provides that:
An employee who was employed by an employer immediately prior to becoming a trainee
with that employer must not suffer a reduction in their minimum wage per week or per
hour by virtue of becoming a trainee. Casual loadings will be disregarded when determining
whether the employee has suffered a reduction in their minimum wage.
The occupational categories with the highest proportions of existing worker trainees are clerical
and administrative workers (28.4% of all commencing clerical and administrative trainees in 2009
were existing workers), machinery operators and drivers (14.6%) and sales workers (11.6%)
(NCVER 2010, p.17).
Relativities to occupational earnings
The use of the national minimum wage as a base for trainee wages is appropriate, given the
relatively high reliance of employees in these occupational categories on the national minimum
wage. Table 5 shows for the top 20 traineeship occupational categories the proportion of
employees who are reliant on minimum rates of pay. In many cases, it is substantially above 19%,
which is Fair Work Australia’s estimate of the proportion of all employees who are reliant on
minimum rates of pay.
NCVER Report 3 final
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Table 5: Proportion of employees in typical trainee occupations reliant on minimum rates of pay
Proportion of
all trainees
covered
by this occupation
Proportion of
employees in this
occupation reliant
on minimum rates of pay
%
%
621 Sales assistants and salespersons
18%
35%
512 Office and practice managers
13%
13%
431 Hospitality workers
9%
61%
732 Delivery drivers
5%
30%
741 Storepersons
5%
19%
531 General clerks
5%
17%
541 Call or contact centre information clerks
4%
8%
224 Information and organisation professionals
3%
2%
423 Personal carers and assistants
3%
45%
831 Food process workers
3%
12%
411 Health and welfare support workers
3%
19%
811 Cleaners and laundry workers
2%
56%
421 Child carers
2%
69%
591 Logistics clerks
2%
11%
134 Education, health and welfare services managers
2%
14%
552 Financial and insurance clerks
2%
9%
712 Stationary plant operators
2%
4%
711 Machine operators
2%
17%
451 Personal service and travel workers
1%
24%
721 Mobile plant operators
1%
14%
841 Farm, forestry and garden workers
1%
14%
Occupation (ANZSCO - NTIS) group
Notes:
Proportion of trainees is based on apprentices in non-trade occupations in-training in October–December 2009.
Proportion reliant on minimum rates of pay is based on analysis of 2006 Employee Earnings and Hours Survey.
Source: NCVER Apprentice and Trainee Collection; Bolton & Wheatley (2010, table 4).
NCVER Report 3 final
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Apprentices
Forty-five awards provide that apprentices may be employed but only 44 specify rates of pay for
apprentices (one, the Children’s Services Award 2010, does not include apprentice rates of pay).
However, award coverage in practice is concentrated on a few main awards for each industry or
occupational category. In table 6, we match modern awards to the main categories for
apprentices in trade occupations, using data from the NCVER collection.
The automotive and engineering, construction and electrical classifications account for more than
seven in ten apprentices in the traditional trades. Approximately a quarter of all apprentices intraining during October–December 2009 were training for occupations in the automotive and
engineering trades (ANZSCO 32). A further quarter were working in the construction trades
(ANZSCO 33). We break these classifications down to the 3-digit level to show the proportion
of apprentices in the automotive and vehicle trades, the engineering trades, the joinery and other
building trades, and the plumbing trades, in order to better align with modern award coverage.
The main awards for the automotive and engineering trades are the Vehicle Manufacturing,
Repair, Services and Retail Award 2010 and the Manufacturing and Associated Industries and
Occupations Award 2010 respectively. Plumbers are covered by their own occupational award,
the Plumbing and Fire Sprinkling Award 2010. The main awards for the construction trade
workers are the Building and Construction General On-Site Award 2010, which covers civil
construction and the Joinery and Building Trades Award 2010, which covers joiners and building
trades workers working in other industries. A further 17% of apprentices are training in the
electrical trades, which is covered by Electrical, Electronic and Telecommunications Contracting
Award 2010. Of the remainder, the largest groups are the food trades (10%) and hairdressing
(6%). Hairdressers are covered by the Hair and Beauty Industry Award 2010. Coverage of the
food trades is split across many awards, depending on industry: the Restaurant Industry Award
2010, the Hospitality Industry (General) Award, the Registered and Licensed Clubs Award 2010,
the Food, Beverage and Tobacco Manufacturing Award 2010, the General Retail Industry Award
2010, and the Meat Industry Award 2010.
NCVER Report 3 final
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Table 6
Apprentices in trades occupations with main relevant modern award(s)
Occupation
Proportion
of apprentices
in trades
occupations
Main relevant modern award(s)
%
31 Engineering, ICT and science
technicians
3
32 Automotive and engineering trades
workers
27
321, 324 Automotive & vehicle trades
workers
13
Vehicle Manufacturing, Repair, Services and
Retail Award 2010
322+323 Engineering trades workers
14
Manufacturing and Associated Industries and
Occupations Award 2010
33 Construction trades workers
27
331, 332, 333 Joiners and building trades
19
334 Plumbers
8
Plumbing and Fire Sprinklers Award 2010
34 Electrotechnology and
telecommunications trades workers
17
Electrical, Electronic and Telecommunications
Contracting Award 2010
35 Food trades workers
10
Restaurant Industry Award 2010
Building and Construction General On-site Award
2010
Joinery and Building Trades Award 2010
Hospitality Industry (General) Award 2010
Registered and Licensed Clubs Award 2010
Food, Beverage and Tobacco Manufacturing
Award 2010
General Retail Award 2010
Meat Industry Award 2010
36 Skilled animal and horticultural workers
4
Gardening & Landscaping Services Award 2010
Nursery Award 2010
Registered and Licensed Clubs Award 2010
39 Other technicians and trades workers
12
391 Hairdressers
6
Hair and Beauty Industry Award 2010
392 Printing trades workers
1
Graphic Arts, Printing and Publishing Award
2010
393 Textile, clothing and footwear trades
workers
0
Textile, Clothing, Footwear and Associated
Industries Award 2010
394 Wood trades workers
2
Timber Industry Award 2010
Manufacturing and Associated Industries and
Occupations Award 2010
399 Miscellaneous technicians and
trades workers
3
NA
Note 1: The Building and Constriction General On-Site Award applies to general building and construction, civil construction
and metal and engineering construction.
Source: NCVER Apprentice and Trainee Collection, in-training estimates, October–December 2009.
In this initial examination of apprentice pay, we consider first the basic rate paid to junior
apprentices. We consider later separate arrangements that may be in place for adult apprentices
and apprentices with higher qualification levels. In all except one case, these are expressed as a
ratio of the relevant tradesperson rate contained in the award. The ratio is based on the stage of
the apprentice, typically expressed as a year. The exception is apprentices in the child care
industry. The Children’s Services Award 2010 contains no wage rates for apprentices and instead
specifies that apprentices are to be paid no less than an unapprenticed junior of the same age.
For the standard four-year apprenticeship, the rates range from 37.5% for a first-year plumber to
95% for fourth-year apprentices in a variety of occupations and industries. Table 7 contains the
NCVER Report 3 final
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ratios for four-year apprenticeships in the main awards, the Miscellaneous Award 2010. This
award is intended as a catch-all award for award-reliant employees who are not covered by any
other award. However, the award is not intended for employees who are not traditionally award
reliant. Table A2 in the appendix contains the ratios for all awards with four-year
apprenticeships.
Table 7
Apprentice wage ratios by year for selected awards (4 year apprenticeships)
Award name
Year 1
Year 2
Year 3
Year 4
%
%
%
%
Building and Construction General On-site Award 2010
45
55
75
90
Electrical, Electronic and Communications Contracting Award 2010
40
52
70
82
General Retail Industry Award 2010
50
60
80
90
47.5
60
72.5
87.5
45
55
77
90
55
65
80
95
45
55
75
90
42
55
75
88
55
65
80
95
37.5
55
70
90
Timber Industry Award 2010 (All except saw doctor apprentices)
50
60
75
90
Vehicle Manufacturing, Repair, Services and Retail Award 20101
42
55
75
88
37.5
50
70
82
58
67
85
95
Graphic Arts, Printing and Publishing Award 2010
Hair and Beauty Industry Award 2010 (Hairdressing apprentices)
2
Hospitality Industry (General) Award 2010
Joinery and Building Trades Award 2010
Manufacturing and Associated Industries and Occupations Award 2010
1
Miscellaneous Award 2010
Plumbing and Fire Sprinklers Award 2010 (Plumbing apprentices)
Lowest ratio in all awards
2
Highest ratio in all awards
Notes:
1 These ratios apply to non-adult apprentices whose highest school level is Year 10 or below. Separate
arrangements apply for those with Year 11 or Year 12. See table 12.
2 The ratio for hairdressers in the first 3 months of their apprenticeship is 35%.
Source: Author’s analysis of modern awards.
A much smaller number of awards provide for three-year apprenticeships in certain vocations.
These awards generally feature higher starting ratios at all years. Awards with three-year
apprenticeships are detailed in table 8.
Table 8
Apprentice wage ratios for three year apprenticeships
Award name
Year 1
Year 2
Year 3
%
%
%
Building and Construction General On-site Award 2010
55
75
90
Water Industry Award 2010
45
70
90
Local Government Industry Award 2010
45
70
90
Joinery and Building Trades Award 2010
50
75
90
General Retail Industry Award 2010
50
60
80
Source: Author’s analysis of modern awards.
The Dry Cleaning Award 2010 also provides for three-year apprenticeships, with a higher wage
payable after the first six months, first year, second year, and in the last six months of the
apprenticeship. The Hospitality Industry (General) Award 2010 and the Registered and Licensed
Clubs Award 2010 include provisions for a two-year waiting apprenticeship.
NCVER Report 3 final
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There is similar uniformity to the actual comparator rate. Of the 44 awards specifying an
apprentice rate of pay, most have as the relevant tradesperson rate the same amount as the C10
tradesperson rate contained in the Manufacturing and Associated Industries and Occupations
Award 2010 (currently $663.60 per week, or 116% of the National Minimum Wage). In some
cases this amount has been rounded to the nearest dollar, in other cases expressed as the
equivalent annual or hourly amount. There are the following exceptions to this pattern:
 Alpine Resorts Award 2010 (all except apprentice chefs) ($705.66)
 Black Coal Mining Industry Award 2010 ($658.80)
 Rail Industry Award 2010 (Operations stream only) ($671.00)
 Stevedoring Industry Award 2010 (658.80)
 Sugar Industry Award 2010 (Bulk Handling Employees) ($717.28)
 Telecommunications Services Award 2010 ($704.60)
 Timber Industry Award 2010 (Saw doctor apprentices only) ($684.50)
 Vehicle Manufacturing, Repair, Services and Retail Award (Higher engineering
tradesperson – Stage 4 only) ($684.50).
The implication of this is that most of the variation in apprentice wages comes from the different
ratios in effect. These reflect many factors, including assumptions about the productivity of
apprentices as they progress, which logically may vary from occupation to occupation.
Pay rates for adult apprentices
Most awards with apprentice rates of pay make no provision for separate rates for adult
apprentices. Of the 20 awards that do, three approaches are evident. Nine awards simply provide
for adult apprentices to receive a higher proportion of the appropriate trades qualified rate. These
awards and their ratios are shown in table 9.
Table 9
Pay ratios for adult apprentices
Award name
Stage 1
Stage 2
Stage 3
Stage 4
%
%
%
%
90.0
90.0
90.0
95.0
80.0
90.0
95.0
na
80.0
90.0
95.0
na
70.0
80.0
85.0
90.0
75.0
80.0
84.0
90.0
82.0
87.0
92.0
100.0
Joinery and Building Trades Award 2010 (Four-year apprenticeship)
81.0
85.0
88.0
94.0
Joinery and Building Trades Award 2010 (Three-year apprenticeship)
83.0
88.0
94.0
na
Textile, Clothing, Footwear and Associated Industries Award 2010
82.0
87.0
92.0
100.0
Timber Industry Award 2010
83.5
88.3
93.4
98.5
Aluminium Industry Award 2010
Black Coal Mining Industry Award 2010
Coal Export Terminals Award 2010
1
1
Electrical Power Industry Award 2010
Electrical, Electronic and Communications Contracting Award 2010
Graphic Arts, Printing and Publishing Award 2010
2
3
Notes:
1 Three-year apprenticeships
2. The Adult Apprentice pay provisions in the Electrical Award are transitional arrangements that apply only to
Queensland apprentices and which expire in 2014.
3. Cl 20.6 of the Graphic Arts, Printing and Publishing Award 2010 provides that an adult apprentice must not be
paid less than the minimum wage for a level 1 employee.
Source: Author’s analysis of modern awards.
NCVER Report 3 final
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The second approach applies the same rates as junior apprentices, but sets a floor that no adult
apprentice can be paid less than a certain amount (often the minimum classification in the
award). Depending on the level of the floor, this may apply only in the first year or to most
stages. Examples of these provisions are detailed in table 10.
Table 10: Formula for calculating pay rates for adult apprentices, selected awards
Award name
Relevant clause
Airport
Employees
Award 2010
The salary of an adult apprentice must be the rate prescribed by clause 16 – Apprentice minimum
wages for the relevant year of apprenticeship. Provided that where a person was employed by the
employer prior to becoming an adult apprentice, such person must not suffer a reduction in the
rate of salary by virtue of becoming indentured (Cl 17.1).
Building and
Construction
General On-site
Award 2010
Subject to clauses 19.8(a) and (b), the rate of pay of an adult apprentice will be the rate
prescribed for the lowest paid classification in clause 19.1 or the rate prescribed by clause 19.7
for the relevant year of apprenticeship, whichever is the greater (Cl 19.8 c).
Educational
Services
(Schools)
General Staff
Award 2010
The rate of pay for an adult apprentice will be the rate prescribed for the lowest classification in
clause 15.1, or the rate prescribed in clause 15.4(b) for the relevant year of the apprenticeship,
whichever is the greater (Cl 15.4 c).
Local
Government
Industry Award
2010
An adult apprentice will be paid no less than the minimum weekly rate for Level 2 in clause 14.1
(14.3 c).
Plumbing and
Fire Sprinklers
Award 2010
The rate of pay of an adult apprentice will be:
• not less than the federal minimum wage plus the full rate of industry disability allowance as
prescribed; or
• the amount prescribed for apprentices generally in clause 20.2, whichever is the greater. (Cl.
20.3 a, 20.3 b)
Water Industry
Award 2010
An adult apprentice will be paid no less than the minimum weekly rate for Level 2 in clause 14 –
Minimum wages (Cl 16.2 c).
The third approach is that used by the Manufacturing and Associated Industries and
Occupations Award 2010 and the awards historically related to it. This relates adult apprentice
wage rates to corresponding adult rates below the level of qualified tradesperson. C10 is the
classification for a qualified tradesperson. C14 is the basic unqualified rate and equates to the
national minimum wage. Wage level C14 assumes up to 38 hours of induction training, while C13
similarly assumed in-house training. The minimum training requirement for C12 is a Certificate II
in Engineering or an Engineering Production Certificate I. Stage 1 adult apprentices are paid the
highest rate in the National Training Wage Schedule for skill level B, which is the level covering
most manufacturing traineeship qualifications.
Table 11 Formula for calculating pay rates for adult apprentices, Manufacturing and Associated
Industries and Occupations Award 2010 and related awards
Award
Stage 1
Stage
2
Stage
3
Stage
4
Manufacturing and Associated Industries and
Occupations Award 2010
National training wage – skill
level B exit rate
C14
C13
C12
Food, Beverage and Tobacco Manufacturing Award
2010
76% of Level 5 (C10)
Level 1
Level 2
Level 3
Vehicle Manufacturing Repair, Services and Retail
Award 2010
National training wage – skill
level B exit rate
Level 1
Level 2
Level 3
Sugar Industry Award 2010 (Milling, Distillery,
Refinery and Maintenance stream)
National training wage – skill
level B exit rate
C14
C13
C12
NCVER Report 3 final
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In addition to these provisions, a number of awards separately provide that an existing worker
who is engaged as an apprentice will not suffer any reduction in pay for commencing an
apprenticeship. In 2009, 10.9% of all commencing apprentices in trades occupations were
existing workers (NCVER 2010, p.17).
Mention should be made of the initiatives undertaken by state jurisdictions to address the issue
of pay rates for adult apprentices. The Western Australian Industrial Relations Commission
issued a general order in 2003 that adult apprentices are to be paid no less than the equivalent
rate for a third-year apprentice in a four-year apprenticeship in the metal industry, although this
nexus was later broken. The South Australian Industrial Relations Commission issued a general
order in 2006 that adult apprentices are to be paid no less than the adult minimum wage. (See
Australian Government 2006, pp.321–5.) These decisions do not apply to the national workplace
relations system.
Consideration of other factors
In some awards, the level of apprentice pay is partly determined by the apprentice’s previous
experience and qualifications. Research undertaken by the Queensland Government as part of its
review into apprentice wages found that apprentices who have completed Year 12 are between
25% and 30% more productive over the life of the apprenticeship than apprentices who have
only completed Year 10 (Queensland Government 2008, p.29). The Manufacturing and
Associated Industries and Occupations Award 2010, the Food, Beverage and Tobacco
Manufacturing Award 2010 and the Sugar Industry Award 2010 (Milling, Distillery, Refinery and
Maintenance stream) take into account the apprentice’s highest level of schooling when
determining the level of pay.
Table 12
Formula for calculating apprentice wage rate based on highest year of schooling
Stage of
apprenticeship
Year 10 or less
Completed Year 11
Completed Year 12
Stage 1
42% of the C10 trades rate
80% of the unapprenticed
junior rate under this award
for an 18-year-old
The relevant rate applicable
to a trainee commencing after
Year 12 under National
Training Wage skill level A.
Stage 2
55% of the C10 trades rate
55% of the C10 trades rate
The relevant rate applicable
to a trainee commencing at
year 12 plus one year under
National Training Wage skill
level A.
Stage 3
75% of the C10 trades rate
75% of the C10 trades rate
75% of the C10 rate
Stage 4
88% of the C10 trades rate
88% of the C10 trades rate
C12 rate
Source: Manufacturing and Associated Industries and Occupations Award 2010.
The following awards allow for apprentices to commence on a later wage point where they have
been granted credit by a state training authority and the nominal duration of their apprenticeship
has been reduced:
 Electrical, Electronic and Communications Contracting Award 2010 (Cl 12.8)
 Graphic Arts, Printing and Publishing Award 2010 (Cl 13.10 b)
 Joinery and Building Trades Award 2010 (Cl 13.4)
 Manufacturing and Associated Industries and Occupations Award 2010 (Cl 25)
 Plumbing and Fire Sprinklers Award 2010 (Cl 16.3)
 Textile, Clothing, Footwear and Associated Industries Award 2010 (Cl 19)
NCVER Report 3 final
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School-based apprentices
The school-based apprentices schedule provides
that the relevant minimum wages for full-time junior and adult apprentices in this award,
calculated hourly, will apply to school-based apprentices for total hours worked including
time deemed to be spent in off-the job training.
In calculating the number of hours spent in off-the-job training, full-time school students will be
deemed to have spent 25% of the actual hours worked on the job in off-the-job training. The
school-based apprentices schedule also details the duration and wage progression arrangements
for school-based apprentices and the arrangements for transferring from a school-based
apprenticeship to a full-time apprentice. A school-based apprentice advanced through the
relevant wage scale at the rate of 12 months progression for each two years of employment as an
apprentice.
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Allowances
In this section, we consider whether apprentices are eligible to receive general allowances, such as
industry allowances and disability allowances, or tool allowances. We do not consider
reimbursements of expenses or allowances that are only payable under certain conditions, such as
meals allowances when more than two hours of overtime is required to be worked, or disability
allowances for working in confined spaces or with hazardous materials, or skills-based
allowances, such as for possession of a first-aid certificate or driving a fork life.
Nine awards provide for additional payments to apprentices as general or industry allowances:
 Seven awards pay apprentices an industry allowance as a percentage of their weekly pay. This
industry allowance ranges from 2.5% (Salt Industry Award 2010) to the 5.96% (Hydrocarbons
Industry [Upstream] Award 2010).
 Apprentices employed under the Electrical, Electronic and Communications Contracting
Award receive an industry allowance of 3.7% as well as a daily travel allowance. Apprentices
are paid a percentage of the full travel allowance ($4.99 per day) according to the same ratio as
their basic rate of pay. Apprentices employed under this award may be eligible for additional
fares allowances if required to travel certain distances to a job site.
 Apprentices employed under the Oil Refining and Manufacturing Award are paid 4% of the
standard rate as an industry allowance
A majority of awards provide for apprentices to receive tool allowances. Under 13 awards,
apprentices receive the full flat rate. Under a further five, apprentices receive a proportion of the
full rate on the same percentage basis as their pay. In a further 12 cases, the situation is more
ambiguous. Tool allowances are paid to trades classifications. Apprentices, while performing the
work of the trades classification, are employed under their own classification and as such and on
a strict reading are not eligible for tool allowance. In the remaining 15 awards, no tool allowance
is payable to apprentices.
A qualification to this relates to apprentices in Queensland. A general order of the Queensland
Industrial Relations Commission, Supply of Tools to Apprentices, establishes that employers
must supply each apprentice with tools of trade. The minimum retail value of the tools is set for
each trade or calling. Tools may be supplied annually (or at the commencement of a new stage
for competency-based training arrangements) or once at the beginning of the apprenticeship.
Under special transitional arrangements, this Order continues to apply to Queensland
apprentices and their employers who were covered by the Order prior to the commencement of
modern awards.
NCVER Report 3 final
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Table 13
Incidence and examples of tool allowance provisions for apprentices in modern awards
Tool allowance summary
No
Example
Full flat rate
13
15.3 (a) Where the employer requires a tradesperson or
an apprentice tradesperson to supply and maintain
tools ordinarily required by the employee in the
performance of their duties as a tradesperson, the
employee will be paid an additional weekly amount of
$18.25 (Local Government Industry Award).
Proportion based on stage of apprentice stage
5
20.20 (a) A tradesperson will be paid an allowance of
$14.69 per week for supplying and maintaining tools
ordinarily required in the performance of the employee’s
work as a tradesperson. The allowance will be paid for
all purposes of the award.
(b) This allowance will apply to apprentices on the
same percentage basis as set out in clause 16 –
Apprentice minimum wages (Airline Operations –
Ground Staff Award).
Tool allowance payable to trades classifications
12
21.1 (b) Where a cook is required to use their own
tools, the employer must pay an allowance of $1.55 per
day or part thereof up to a maximum of $7.60 per week.
(Hospitality Industry [General] Award).
No tool allowance payable – reimbursement of tools
3
15.4 An employee will be reimbursed the demonstrated
cost of purchase for all tools of trade required in the
performance of the employee’s duties. The provisions
of this clause will not apply where the employer
provides such tools of trade (Dry Cleaning and Laundry
Industry Award).
No tool allowance payable
12
Source: Author’s analysis of modern awards.
NCVER Report 3 final
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Competency-based progression
It was agreed at the COAG meeting in December 2009 that governments would facilitate
arrangements for effective implementation of competency-based progression and completion for
apprentices. Competency-based progression is promoted as one method of accelerating
apprenticeships to increase the supply of skilled workers. Training authorities have adapted their
rules to provide for an earlier completion of the apprenticeship and consequently the average
duration of an apprenticeship is decreasing. Of the apprentices in trade occupations completing
in 1999, 65.6% had been in training between three and four years and only 28.9% of apprentices
had been in training for less than three years. By comparison, 48.5% of apprentices completing in
2009 had been in training for between three and four years and 46.0% had been in training for
less than three years (NCVER 2010).
Table 14
Apprentice and trainee completions in trade occupations, certificate III or above, by
duration of training, 1999–2009 (%)
Year
Up to 1 year
Over 1 and up
to 2 years
Over 2 and up
to 3 years
Over 3 and up
to 4 years
Over 4 years
1999
9.8
9.2
9.9
65.6
5.5
2000
10.0
10.8
11.3
63.1
4.9
2001
10.6
13.3
13.5
57.7
4.9
2002
12.5
12.8
15.3
53.5
5.9
2003
14.1
14.7
13.9
51.1
6.2
2004
11.6
16.8
16.1
49.0
6.5
2005
12.3
15.8
17.1
48.9
5.9
2006
11.5
16.5
17.2
49.3
5.6
2007
11.9
15.4
17.4
49.7
5.6
2008
11.2
15.3
16.6
51.4
5.5
2009
11.4
Source: NCVER (2010, table 20).
16.7
17.9
48.5
5.5
The ability of apprentices to advance to a higher wage level constitutes a significant incentive to
achieve competencies at a faster rate. However, award provisions governing the vast majority of
apprenticeships continue to base wage progression during the apprenticeship on duration of
service, not achievement of competencies.
There are few exceptions, which do provide for apprentices to increase their wages more quickly
as their competence improves.
 The Manufacturing and Associated Industries and Occupations Award 2010 provides for
apprentices to advance to the next stage of the apprenticeship, once they have completed the
appropriate proportion of the competencies needed to attain the qualification associated with
the apprenticeship, or after 12 months, whichever occurs sooner (Cl 15.6). By the same
measure, apprentices can commence their apprenticeship at a higher wage rate if they have
already completed the prerequisite competencies for that stage.
 The Vehicle Manufacturing, Repair, Services and Retail Award 2010 also allows for
competency-based wage progression, by completing competencies in accordance with the
apprentice’s training plan (Cl 35.1 [Repair, services & retail], Cl 49 [Manufacturing]).
 The Food, Beverage and Tobacco Manufacturing Award 2010 (Cl 21.2) and the milling and
distilling streams of the Sugar Industry Award 2010 (Cl 40.4) adopt the same language as the
manufacturing award, referring to ‘stages’ rather than years, but do not include any other
provisions detailing what requirements need to be met for apprentices to advance stages.
NCVER Report 3 final
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 The Joinery and Building Trades Award 2010 provides for apprenticeships to be completed
prior to the nominal completion date, where the qualification has been attained and other
requirements met, but advancement between wage levels is based on time (Cl 13.5 a).
 The Timber Industry Award 2010 states that the term of apprenticeship is determined by the
rate by which an apprentice gains the required competence and the starting level of the
competence but the award does not refer to advancement between wage levels (Cl 12.7 c).
 The Building and Construction General On-site Award 2010 contain transitional provisions
allowing competency-based progression through the wage structure (Cl 19.7 c). These
transitional provisions only apply to apprentices to whom competency-based progression
arrangements would have applied prior to 1 January 2010 (see below). These transitional
provisions cease to operate on 31 December 2014.
As a separate issue, three awards provide for apprentices to shorten the nominal period of their
apprenticeship and commence on a later wage stage on the basis of credit or previous experience.
These are:
 Electrical, Electronic and Communications Contracting Award 2010 (Cl 12.8)
 Graphic Arts, Printing and Publishing Award 2010 (Cl 13.10)
 Joinery and Building Trades Award 2010 (Cl13.4)
 Plumbing and Fire Sprinklers Award 2010 (only in relation to adult apprentices) (Cl 16.4)
 Textile, Clothing, Footwear and Associated Industries Award 2010 (Cl C.9).
The remaining awards make no reference to competency-based progression through the wage
structure. The wage rates for apprentices in these awards refer to years. Two awards, the
Plumbing and Fire Sprinklers Award 2010 (in relation to junior apprentices only) and the
Electrical, Electronic and Communications Contracting Award 2010, specify that the term of the
apprenticeship will be four years. This means that engineering and automotive apprentices,
comprising one-quarter of all apprentices in the traditional trades, are well covered by
competency-based wage progression but the other occupational categories are not. The
arrangements vary for construction and electrical apprentices and no arrangements are in place
for the other sizeable categories, namely, the food trades and hairdressing.
Prior to award modernisation, Queensland was the jurisdiction to have made the most progress
advancing competency-based progression for apprentices (Australian Government 2006; Callan
2008). The Apprentices’ and Trainees’ Wages and Conditions Order (4.3.1) provides:
Progression through the wage levels shall be based upon the attainment of competencies or
minimum training requirements such as the expiry of a period of time, that are specified in the
relevant schedule.
The generic wage arrangements for apprentices and trainees from Schedule 1 of the Order are
reproduced in tables A3 and A4 of the appendix. As part of the transitional arrangements, an
exception was made so that if an award-based transitional instrument sets a competency-based
training arrangement, or relates exclusively to the provision of tool for an apprentice, then it will
continue to apply to existing as well as new apprentices (see Fair Work Australia 2010, p.17). This
means that competency-based training arrangements such as those in the Queensland
Apprentices’ and Trainees’ Wages and Conditions Order and any other pre-reform award,
NAPSA remain in effect. Under the transitional arrangements, any competency-based training
arrangement referred to in a Division 2B State Award will also continue in effect after 1 January
2011.
NCVER Report 3 final
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Identifying over-award payments
Our task now is to examine the extent of over-award payments among apprentices and trainees.
Income data from the ABS Survey of Education and Training relates to May 2009, before the
commencement of modern awards. Therefore, we need to consider the regulatory arrangements
in place at that time, which were those established by the Howard Government under the
Workplace Relations Amendment (Work Choices) Act 2006, commonly known as the Work Choices
regime.
Under Work Choices, a number of significant changes were made. First, Work Choices greatly
expanded the coverage of the federal workplace relations system by capturing all employees of
constitutional corporations who were previously covered by the state systems. It was estimated at
the time that this increased the proportion of the Australian workforce covered by the federal
system to around 85%. Employees in the federal system who were formerly covered by state
awards were now covered by a NAPSA.
Secondly, Work Choices removed pay scales from awards and NAPSAs, creating a separate pay
scale instrument. At the same time, the reforms transferred wage-setting powers from the
Australian Industrial Relations Commission (AIRC ) to the Australian Fair Pay Commission
(AFPC).
We have calculated the applicable award rates of pay for apprentices and trainees covered by the
federal system as at May 2009. The rates of pay include all AFPC decisions and AIRC Wages and
Allowance Review adjustments as of 2008. (No increase was made in 2009.) Further details are
given in table A6 in the appendix.
Method
In this report, we compare the apprentice’s and trainee’s actual weekly income with their award
rate of pay. This is a different approach from that used in the 2005 Australian Chamber of
Industry and Commerce investigation of apprentice pay, which used a survey of employers. Our
approach resembles studies that have used HILDA data to examine the extent of minimum wage
workers in Australia (e.g. Healy & Richardson 2006; McGuinness, Freebairn & Mavromaras
2007). However, our task is considerably more complicated because there is not a single award
rate of apprentice pay. We calculate an award rate of pay using characteristics contained in the
Survey of Education and Training, such as age, occupation and state. The following process was
used to calculate the extent of above-award payments to apprentices and trainees.
First, an award wage for apprentices and trainees at May 2009 (the collection period for the
Survey of Education and Training) was determined, using the following principles.
For apprentices, the award wage rate was calculated using the relevant award rate, based on stage
and whether an adult apprentice. Adult apprentices were deemed to be those who were aged 21
or older when they commenced employment in their current job. The relevant award was
identified on the basis of the following criteria: occupation (to 2-digit level), industry (to 2-digit
level) and state.
The principal occupational or industry award or NAPSA was selected. These are detailed in table
A5 of the appendix. It is possible that the apprentice is instead covered by another award or
NAPSA, such as a public sector award or enterprise award. At the 2-digit level, it is not possible
to distinguish plumbing apprentices (who were covered by their own occupational award) from
other construction apprentices. Technicians (ANZSCO31) were excluded, as these are generally
NCVER Report 3 final
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traineeships, as were Animal and Horticultural trades workers (ANZSCO32) who did not selfreport as apprentices and who were not working in nursery, landscaping, gardening or greenkeeping industries. Apprentice rates of pay have been identified for the following apprentice
groups: automotive, engineering, construction (including plumbers), electro-technology, food,
horticultural, hairdressing, printing trades, wood trades and textile, clothing footwear trades. In
total, 69 pre-reform awards and NAPSAs were used in the analysis and these are listed in
appendix A.
Stage/year was derived from duration of current employment in current job. Part-time
apprentices were assumed to progress at half the rate of full-time apprentices. All apprentices
were assumed to be enrolled in four-year apprenticeships. Separate adult rates of pay were
identified in nine awards. In addition, separate rates of pay were identified for apprentices
working in the engineering trades who had completed Years 11 or 12.
The rates of pay take into account the base rate, as well as any tool allowances, industry
allowances or special allowances generally payable to apprentices. The rates of pay include all
AIRC Wages and Allowance Review adjustments as of 2008 and are given in table A6 in the
Appendix. Adult apprentice pay rates are shown in table A7. Only pay rates in the federal
jurisdiction have been used. Apprentices working for most non-constitutional corporations
would have remained subject to the State Award rate, rather than the NAPSA rate. The standard
tradesperson award rate in the state jurisdictions was between 0.4% (Tasmania) and 2.1%
(Western Australia) higher than the federal C10 Tradesperson rate. Apprentices with a higher
likelihood of working for non-constitutional corporations include food trades working in the
hospitality industry and hairdressers. It was possible to identify an apprentice rate of pay for 271
respondents and a trainee rate of pay for 204 respondents. Our results are weighted using the
population weights calculated by the ABS.
In calculating the award wage, we assume a 38 hour week for apprentices. Apprentices who
report that they usually work less than 38 hours have their award rate of pay adjusted for the
number of hours they work. We do not adjust the award rate of pay for those working more than
38 hours per week. To do so would have involved more complex calculations and assumptions
that take into account what overtime penalty, if any, applied. Likewise, the award rate of pay does
not take into account any shift penalties that might be applicable, since the Survey of Education
and Training contains no information on shifts. Therefore, in interpreting the results, it should
be borne in mind that provisions entitling apprentices to overtime pay and shift and overtime
penalties contribute to the extent of over-award payments.
For trainees, the award wage rate was calculated using the National Training Wage Award 2000
(AP790899), using a combination of qualification level, occupation, industry, highest level of
school completed, whether still at school and, in the case of certificate IV traineeships, duration
of employment in current job. Trainees undertaking a certificate I–IV qualification were allocated
to wage levels on the basis of their occupation and industry. This is the best available match
possible using the Survey of Education and Training, given that training package (which is the
basis upon which wage levels are determined) was not within the scope of the Survey of
Education and Training. Most certificate I–III traineeships are at paid at wage level A (see table
15). To simplify coding, we identified all those combinations of occupation, industry and
qualification level that correspond to wage level B and wage level C. All other combinations were
assumed to be paid at wage level A.
Information from the NCVER Apprentice and trainee collection was used to match training
packages to occupation and industry combinations. Initially, current apprentices and trainees
were cross-tabulated by training package and occupation at the two-digit level. Where it was not
possible at this level of detail to match an occupation to a training package, the occupation was
further segmented by industry. Where a combination of industry and occupation could apply to
NCVER Report 3 final
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more than one wage level, a decision was made to allocate all trainees in that combination to the
highest wage level. The final combinations of industry and occupation and their allocation to
wage levels are shown in table A8 in the appendix. The spreadsheets used to allocate industry and
occupation combinations to wage levels are available from NCVER on request. The wage rates
for trainees are shown in table A9.
Table 15
Trainees in training as at 31 December 2009 by wage level
Qualification level
Wage level
Diploma and above
5599
2.5%
27.8%
Wage level A
115716
51.7%
Wage level B
35478
15.9%
Wage level C
3986
1.8%
717
0.3%
Could not be determined
Total
Per cent
62132
Certificate IV
Certificates I–III
Number
223628
Note: trainees identified as those in non-trade occupations.
Source: calculated from NCVER Apprentices and Trainees Collection using information from the National Training Wage
schedule.
The award wage for trainees undertaking a diploma-level qualification was given as the federal
minimum wage. Where the qualification level was missing (as it was in a third of cases), the
qualification level was assumed to be certificate III.
When reporting the proportion of apprentices and trainees paid at the award wage, we include a
tolerance of +10%. We also do not report separately those apprentices and trainees who are paid
less than the award wage. That is, if our award calculations indicate that an apprentice with
particular characteristics should be paid $500 per week, we count all those earning up to and
including $550 per week as being paid the award wage.
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Extent of over-award payments
We now examine the extent of over-award payments among apprentices and trainees. We report
the average (median) weekly award wage as calculated, the average (median) weekly income from
main job and the average (median) weekly above-award payment. In calculating the average
weekly above-award payment, we apply a tolerance of 10% to the calculated award wage and
disregard those earning below the award wage. Consequently, the average weekly above-award
payment is smaller than the difference between the average weekly award wage and the average
weekly income.
Looking first at income for apprentices, we find that most apprentices receive over-award
payments. However, as table 16 shows, there is substantial variation by occupation. More than a
quarter of automotive and engineering apprentices and more than a third of electrical apprentices
earn more than $250 a week above the relevant award wage. While a majority of construction
apprentices receive close to the relevant award rate, this partly reflects the higher award rates for
apprentices in the construction trades, who are paid a weekly industry allowances at the same rate
as tradespeople, as well as a special allowance, which is paid at the same ratio as their ordinary
wages. This aside, apprentices from the other categories (comprising the food trades,
horticultural trades, hairdressing, wood trades, printing trades and textile, clothing and footwear
trades) are less likely to earn income well in excess of the relevant award wage. The average
weekly income for automotive and engineering, construction and other trades apprentices was
below the federal minimum wage at the time ($543.80 per week).
When considered by stage of apprenticeship, there is a sharp difference between apprentices in
the first two years of their apprenticeship, who earn well below the minimum wage, and those in
the later stages, who do considerably better. The insertion of adult apprentice pay clauses into
awards appears to have made an impact, with adult apprentices receiving a higher award rate as
well as having a higher average income. There is little difference in the incomes of apprentices
working in capital cities and those working outside the capital cities, although it does appear that
apprentices working outside the capital cities are less likely to receive above-award payments. As
expected, apprentices working in small businesses are less likely to receive above-award
payments.
NCVER Report 3 final
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Table 16: Apprentice average weekly income and award over-payment by selected characteristics
Average (median)
weekly
award wage ($)
Average (median)
weekly income ($)
Average (median)
weekly above award
payment ($)
Paid at award wage
(%)
Up to $150
over relevant award
wage (%)
$151 - $300
over relevant award
wage (%)
$301 or more
over relevant award
wage (%)
Automotive & Engineering
356
500
55
43.2
20.1
21.7
15.0
Construction
399
441
27
42.4
39.9
12.0
5.7
Electrical
518
652
179
24.4
24.4
12.8
38.4
Other trades
414
502
49
29.1
49.9
13.2
7.8
Stage 1
274
403
72
22.4
43.2
22.5
11.9
Stage 2
356
400
0
57.6
23.6
8.1
10.7
Stage 3
484
614
65
34.7
25.1
22.0
18.3
24.8
10.5
25.9
Occupation
Stage
Stage 4
567
672
57
38.9
517
620
168
19.2
27.4
33.4
20.0
32.9
10.1
15.0
Age
Adult
Junior
356
464
24
42.1
383
503
74
30.0
33.9
16.4
19.8
28.9
15.5
12.4
Location
Capital city
Balance of state or territory
368
500
18
43.2
356
477
19
42.2
34.9
14.2
8.7
180
25.7
19.6
22.8
31.9
31.4
13.6
21.7
31.5
16.0
16.3
Size of business
Under 20
20–99
518
638
100 and over
383
550
89
33.3
Total
383
500
57
36.3
Note: The award wage calculations take into account the small number of part-time apprentices but do not take into account overtime hours for full-time apprentices or penalties that may be payable for shiftwork or overtime hours.
Stage is calculated in EFT years of duration of employment in current job. Part-time apprentices are assumed to progress at half the rate of full-time apprentices. Apprentices with an EFT duration of greater than 4 years are grouped
with Stage 4.
Source: 2009 Survey of Education and Training.
NCVER Report 3 final
Page 54
Turning now to trainees, we see that a majority of trainees also earn incomes well in excess of the
relevant award wage. However, this picture varies distinctly by age and duration of employment.
These results are shown in table 17. A majority of trainees who were less than 21 when they
started their current job receive the award wage or up to $150 per week more, whereas a majority
of trainees over the age of 21 earn at least $151 in excess of the relevant weekly award wage. A
similar split occurs looking at duration of employment. Existing workers who commence a
traineeship are entitled to continue to receive their existing wage, which must at least be equal to
the minimum wage. As the highest training wage rate is tied to 91% of the minimum wage,
existing workers by definition will receive in excess of 9% of the relevant award rate. As a proxy
measure, we define existing workers as those who have been in their current job for more than
24 months. More than nine in ten non-trade apprentices and trainees complete their training
within this period (NCVER 2010, p.20). Existing workers are much more likely to earn income
well in excess of the relevant award wage. Male trainees, reflecting their concentration in drivers
and machinery operator occupations, are much more likely to earn above-award wages, whereas
female trainees are more likely to earn close to the relevant award wage. Junior trainees, new
trainees and female trainees earn on average less than the federal minimum wage.
NCVER Report 3 final
Page 55
Table 17: Trainee award over-payment by characteristics
Adult
Average (median)
weekly
award wage ($)
Average (median)
weekly income ($)
Average (median)
weekly above
award payment
($)
Paid at award
wage (%)
501
761
207
Up to $150
over relevant
award wage (%)
$151 - $300
over relevant
award wage (%)
$301 or more
over relevant
award wage (%)
22.7
20.0
17.7
39.7
18.7
52.3
21.9
7.1
Not adult
269
380
60
Existing worker
501
750
167
16.5
26.5
16.8
40.2
Not existing worker
437
450
94
23.8
41.2
21.6
13.4
Males
501
700
216
12.8
28.5
22.7
36.0
Females
483
450
60
27.4
40.8
17.2
14.7
All trainees
483
550
105
20.8
35.2
19.7
24.3
Note: Adult defined as 21 years or older when started current job. Existing worker defined as current job duration greater than or equal to 24 months.
Source: 2009 Survey of Education and Training.
NCVER Report 3 final
Page 56
Final comments
Over-award payments for apprentices and trainees are in fact quite prevalent. This is likely to be
a reflection of a number of factors:
 strong market demand for skilled labour, especially in the electrical and automotive and
engineering trades
 the opportunity to work additional hours as overtime or shiftwork, which continue to attract
penalties in most awards but which have not been taken into account in this study
 coverage of apprentices by other wage instruments, such as collective agreements, that cannot
be identified by this study
 existing workers undertaking traineeships, and to a much lesser extent apprenticeships, and so
continuing to receive a wage higher than the apprentice wage.
Consistent with our expectations, we find that among apprentices, over-award payments are
most common in the electrical and automotive and engineering trades and least common in the
other trades.
Against our expectations, we find that over-award payments are quite common among trainees.
However, over-award payments for trainees are segmented by age, sex and employment duration.
Female trainees, young trainees, and new workers are much more likely to earn wages close to
the award wage.
It is clear that, for some groups of apprentices and trainees, wage levels are very low and earnings
fall substantially below the minimum wage. Some have argued that this is of concern, and
certainly low wages must discourage potential apprentices and trainees (see Misko, Nguyen &
Saunders 2007). There are two obvious wages of increasing the income of the lowest-paid
apprentices and trainees—increasing award payments and through government income support.
The former will clearly affect the number of apprentices and trainees taken on by employers (but
we do not know by how much). The latter would be a transfer from taxpayers and typically
income support only goes to those in extreme need. Even now, apprentices and trainees are
entitled to income support but the numbers receiving such support are very low. On the basis of
NCVER data and data supplied by Centrelink, fewer than one in 20 non-indigenous apprentices
and trainees under the age of 25 receive youth allowance payments.
However, for a variety of reasons, the majority of apprentices and trainees earn in excess of the
relevant award wage. The substantial number of apprentices and trainees receiving above-award
payments suggests that more than the level of award wages, it is the opportunity cost of
undertaking an apprenticeship or traineeship that mattes. This was the focus of recent work by
Karmel and Mlotkowski (2010), using data from the NCVER Apprentice and Trainee
Destination Survey. For apprentices, they found that what matters most is the wage premium on
completion. Apprentices are more likely to complete their training if the wage they can expect to
receive on completion is higher than the wage they could expect in alternative employment. Male
trainees are less likely to complete their training if the wage they can expect to receive in
alternative employment is higher than the training wage.
Award wages and the extent of over-award payments are therefore germane, but the scope needs
to be larger, encompassing apprentices and trainees, the occupations open to apprentices and
trainees once they complete their training, and the alternative occupations and jobs that are
available to apprentices and trainees if they do not complete their training.
NCVER Report 3 final
Page 57
References
Australian Chamber of Commerce and Industry 2005, ‘Paying apprentices – the market responds’, ACCI
Review, no.120, February, pp.5–9.
Australian Government 2006, Australian Government Submission to the Australian Fair Pay Commission,
July, viewed 16 July 2010,
<http://www.workplace.gov.au/workplace/Publications/WorkplaceRelations/MinimumWageDeterm
ination-Archive.htm>.
Bittman, M, Reavell, R,Smith, G & Battin, T 2006, Living standards of apprentices, report prepared for Group
Training Australia, Centre of Applied Research in Social Science (CASS), University of New England,
Armidale.
Bolton , T & Wheatley, T 2010, Earnings of employees who are reliant on minimum rates of pay, research report
4/2010, Fair Work Australia, Melbourne.
Callan, V 2001, Report on apprenticeship and traineeship completion, Department of Employment, Training and
Industrial Relations, Brisbane.
—— 2008, Accelerated apprenticeships: apprentice, employer and teaching staff perceptions, NCVER, Adelaide.
Cully, M & Curtain, R 2001, Reasons for new apprentices’ non completion, NCVER, Adelaide.
Fair Work Australia 2010, Minimum wage transitional instruments under the Fair Work Act 2009 and the Fair
Work (Transitional Provisions and Consequential Amendments Act) 2009, Fair Work Australia,
Melbourne.
Grey, K, Beswick, W, O’Brien, C & Ray, D 1999, Traineeship non-completion, Department of Education,
Training and Youth Affairs Canberra.
Healy, J & Richardson, S 2006, An updated profile of the minimum wage workforce in Australia, report
commissioned by the Australian Fair Pay Commission, research report no.4/06, Melbourne.
Karmel, T & Mlotkowski, P 2010, The impact of wages on the probability of completing an apprenticeship or traineeship,
NCVER, Adelaide.
McGuinness, S, Freebairn, J & Mavromaras, K 2007, Characteristics of minimum wage employees, rev. edn, July
2007, research report no. 2/07, commissioned by the Australian Fair Pay Commission, Melbourne.
Misko, J, Nguyen, N &. Saunders, J 2007, Doing an apprenticeship: what young people think, NCVER, Adelaide.
NCVER (National Centre for Vocational Education Research) 2010, Apprentice and trainee 2009 annual,
NCVER, Adelaide.
Oliver, D 2008, The link between industrial arrangements and skill reform, report prepared for the Office of
Industrial Relations, Workplace Research Centre, Sydney.
Queensland Government 2008, Queensland Government Submission to the Australian Industrial Relations
Commission – award modernisation, Brisbane.
Snell, D & Hart, A 2008, ‘Reasons for non-completion and dissatisfaction among apprentices and trainees:
a regional case study’, International Journal of Training Research, vol.6, no.1, pp.44–73.
Orders of the Queensland Industrial Relations Commission
Order – Apprentices’ and Trainees’ Wages and Conditions (Excluding Certain Queensland Government
Entities) 2003,
<http://www.qirc.qld.gov.au/resources/pdf/orders/order%20obo%20extract_181208.pdf>
Order – Supply of Tools to Apprentices 1998,
<http://www.qirc.qld.gov.au/resources/pdf/orders/supply%20of%20tools%20to%20apprentices.pdf>.
NCVER Report 3 final
Page 58
Appendix
Table A1
Modern awards and their inclusion of apprentice rates of pay, Training Wage Schedule
and School Based Apprentices Schedule
Apprentice
rates of
pay
National
Training
Wage
Schedule
School
Based
Apprentice
Schedule
Aboriginal Community Controlled Health Services Award 2010
N
Y
N
Aged Care Award 2010
N
Y
N
Air Pilots Award 2010
N
N
N
Aircraft Cabin Crew Award 2010
N
N
N
Airline Operations – Ground Staff Award 2010
Y
N
Y
Airport Employees Award 2010
Y
Y
Y
Alpine Resorts Award 2010
Y
Y
N
Award name
Aluminium Industry Award 2010
Y
Y
Y
Ambulance and Patient Transport Industry Award 2010
N
N
N
Amusement, Events and Recreation Award 2010
Y
Y
Y
Animal Care and Veterinary Services Award 2010
N
Y
N
Aquaculture Industry Award 2010
N
Y
Y
Architects Award 2010
N
N
N
Asphalt Industry Award 2010
N
Y
N
Banking, Finance and Insurance Award 2010
N
N
Y
Black Coal Mining Industry Award 2010
Y
Y
Y
Book Industry Award 2010
N
N
N
Broadcasting and Recorded Entertainment Award 2010
N
Y
N
Building and Construction General On-site Award 2010
Y
Y
Y
Business Equipment Award 2010
N
Y
Y
Car Parking Award 2010
N
Y
N
Cement and Lime Award 2010
N
Y
N
Cemetery Industry Award 2010
Y
Y
Y
Children’s Services Award 2010
Y
Y
N
Cleaning Services Award 2010
N
Y
N
Clerks – Private Sector Award 2010
N
Y
N
Coal Export Terminals Award 2010
Y
N
Y
Commercial Sales Award 2010
N
Y
N
Concrete Products Award 2010
N
Y
N
Contract Call Centres Award 2010
N
Y
N
Corrections and Detention (Private Sector) Award 2010
N
Y
N
Cotton Ginning Award 2010
N
Y
N
Dredging Industry Award 2010
N
Y
N
Dry Cleaning and Laundry Industry Award 2010
Y
Y
Y
Educational Services (Post-Secondary Education) Award 2010
N
Y
N
Educational Services (Schools) General Staff Award 2010
Y
Y
Y
Educational Services (Teachers) Award 2010
N
N
N
Electrical, Electronic and Communications Contracting Award 2010
Y
Y
Y
Electrical Power Industry Award 2010
Y
Y
Y
Fast Food Industry Award 2010
N
Y
N
NCVER Report 3 final
Page 59
Apprentice
rates of
pay
National
Training
Wage
Schedule
School
Based
Apprentice
Schedule
Fire Fighting Industry Award 2010
N
N
N
Fitness Industry Award 2010
N
Y
N
Food, Beverage and Tobacco Manufacturing Award 2010
Y
Y
Y
Funeral Industry Award 2010
N
Y
Y
Gardening and Landscaping Services Award 2010
Y
Y
Y
Gas Industry Award 2010
Y
Y
Y
General Retail Industry Award 2010
Y
Y
N
Graphic Arts, Printing and Publishing Award 2010
Y
Y
Y
Hair and Beauty Industry Award 2010
Y
Y
N
Health Professionals and Support Services Award 2010
N
Y
N
Higher Education Industry – Academic Staff – Award 2010
N
N
N
Higher Education Industry – General Staff – Award 2010
N
N
N
Horse and Greyhound Training Award 2010
N
Y
N
Horticulture Award 2010
N
Y
N
Hospitality Industry (General) Award 2010
Y
Y
Y
Hydrocarbons Field Geologists Award 2010
N
Y
N
Hydrocarbons Industry (Upstream) Award 2010
Y
Y
Y
Award name
Joinery and Building Trades Award 2010
Y
Y
Y
Journalists Published Media Award 2010
N
N
N
Labour Market Assistance Industry Award 2010
N
Y
N
Legal Services Award 2010
N
Y
N
Live Performance Award 2010
N
Y
Y
Local Government Industry Award 2010
Y
Y
Y
Mannequins and Models Award 2010
N
N
N
Manufacturing and Associated Industries and Occupations Award
2010
Y
Y
Y
Marine Tourism and Charter Vessels Award 2010
N
Y
N
Marine Towage Award 2010
N
N
N
Maritime Offshore Oil and Gas Award 2010
N
Y
N
Market and Social Research Award 2010
N
N
Y
Meat Industry Award 2010
Y
Y
Y
Medical Practitioners Award 2010
N
N
N
Mining Industry Award 2010
Y
Y
Y
Miscellaneous Award 2010
Y
Y
Y
Mobile Crane Hiring Award 2010
N
Y
Y
Nursery Award 2010
Y
Y
N
Nurses Award 2010
N
N
N
Oil Refining and Manufacturing Award 2010
Y
Y
Y
Passenger Vehicle Transportation Award 2010
N
Y
N
Pastoral Award 2010
N
Y
N
Pest Control Industry Award 2010
N
Y
N
Pharmaceutical Industry Award 2010
N
Y
N
Pharmacy Industry Award 2010
N
Y
N
Plumbing and Fire Sprinklers Award 2010
Y
Y
Y
Port Authorities Award 2010
Y
Y
Y
Ports, Harbours and Enclosed Water Vessels Award 2010
N
N
N
Poultry Processing Award 2010
N
Y
N
Premixed Concrete Award 2010
N
Y
N
Professional Diving Industry (Industrial) Award 2010
N
N
N
NCVER Report 3 final
Page 60
Apprentice
rates of
pay
National
Training
Wage
Schedule
School
Based
Apprentice
Schedule
Professional Diving Industry (Recreational) Award 2010
N
Y
N
Professional Employees Award 2010
N
N
N
Quarrying Award 2010
N
Y
N
Racing Clubs Events Award 2010
N
Y
Y
Racing Industry Ground Maintenance Award 2010
Y
Y
Y
Rail Industry Award 2010
Y
Y
Y
Real Estate Industry Award 2010
N
Y
N
Registered and Licensed Clubs Award 2010
Y
Y
Y
Restaurant Industry Award 2010
Y
Y
Y
Road Transport and Distribution Award 2010
N
Y
N
Road Transport (Long Distance Operations) Award 2010
N
Y
N
Salt Industry Award 2010
Y
Y
Y
Seafood Processing Award 2010
N
Y
N
Seagoing Industry Award 2010
N
Y
N
Security Services Industry Award 2010
N
Y
N
Silviculture Award 2010
N
Y
N
Social, Community, Home Care and Disability Services Industry
Award 2010
N
N
N
Sporting Organisations Award 2010
N
Y
N
State Government Agencies Administration Award 2010
N
Y
N
Stevedoring Industry Award 2010
Y
Y
Y
Storage Services and Wholesale Award 2010
N
Y
N
Sugar Industry Award 2010
Y
Y
Y
Supported Employment Services Award 2010
N
Y
N
Surveying Award 2010
N
N
Y
Telecommunications Services Award 2010
Y
N
Y
Textile, Clothing, Footwear and Associated Industries Award 2010
Y
Y
Y
Timber Industry Award 2010
Y
Y
Y
Transport (Cash in Transit) Award 2010
N
Y
N
Travelling Shows Award 2010
N
Y
N
Vehicle Manufacturing, Repair, Services and Retail Award 2010
Y
Y
Y
Waste Management Award 2010
N
Y
N
Water Industry Award 2010
Y
Y
Y
Wine Industry Award 2010
Y
Y
Y
Award name
Wool Storage, Sampling and Testing Award 2010
N
Y
N
Total
45
95
49
Note that the following awards contain the School-Based Apprentices Schedule but do not contain rates of pay for
apprentices:
Live Performance Award 2010
Market and Social Research Award 2010
Mobile Crane Hiring Award 2010
Racing Clubs Events Award 2010
Surveying Award 2010
NCVER Report 3 final
Page 61
Table A2
Pay ratios for 4-year apprentices
Award name
Award no.
Relevant
comparator
rate
Stage 1 rate
%
Stage 2 rate % Stage 3 rate % Stage 4 rate %
Airline Operations – Ground Staff Award 2010
MA000048
$663.60
42.0%
55.0%
75.0%
88.0%
Airport Employees Award 2010
MA000049
$665.63
42.0%
55.0%
75.0%
88.0%
Alpine Resorts Award 2010 (all trades except Chef)
MA000092
$705.66
55.0%
65.0%
80.0%
95.0%
Alpine Resorts Award 2010 (chef)
MA000092
$663.86
55.0%
65.0%
80.0%
95.0%
Aluminium Industry Award 2010
MA000060
$663.60
50.0%
60.0%
75.0%
88.0%
Amusement, Events and Recreation Award 2010
MA000080
$663.60
47.5%
60.0%
75.0%
95.0%
Black Coal Mining Industry Award 2010
MA000001
$658.80
45.0%
60.0%
75.0%
90.0%
Building and Construction General On-site Award 2010
MA000020
$663.60
45.0%
55.0%
75.0%
90.0%
Cemetery Industry Award 2010
MA000070
$663.60
47.5%
60.0%
75.0%
95.0%
Coal Export Terminals Award 2010
MA000045
$663.60
45.0%
55.0%
75.0%
88.0%
Educational Services (Schools) General Staff Award 2010
MA000076
$664.00
45.0%
55.0%
75.0%
90.0%
Electrical Power Industry Award 2010
MA000088
$664.00
42.0%
55.0%
75.0%
85.0%
Electrical, Electronic and Communications Contracting Award 2010
MA000025
$663.60
40.0%
52.0%
70.0%
82.0%
Food, Beverage and Tobacco Manufacturing Award 20101
MA000073
$663.60
42.0%
55.0%
75.0%
88.0%
Gardening and Landscaping Services Award 2010
MA000101
$663.60
47.5%
60.0%
75.0%
95.0%
Gas Industry Award 2010
MA000061
$663.60
45.0%
55.0%
75.0%
88.0%
General Retail Industry Award 2010
MA000004
$663.60
50.0%
60.0%
80.0%
90.0%
Graphic Arts, Printing and Publishing Award 2010
MA000026
$663.60
47.5%
60.0%
72.5%
87.5%
Hair and Beauty Industry Award 2010 (Hairdressing)
2
MA000005
$663.60
45.0%
55.0%
77.0%
90.0%
Hair and Beauty Industry Award 2010 (Beauty Therapy)
MA000005
$663.60
45.0%
60.0%
80.0%
90.0%
Hospitality Industry (General) Award 2010
MA000009
$663.60
55.0%
60.0%
85.0%
95.0%
Hydrocarbons Industry (Upstream) Award 2010
MA000062
$663.60
45.0%
55.0%
75.0%
88.0%
Joinery and Building Trades Award 2010
MA000029
$663.60
45.0%
55.0%
75.0%
90.0%
Local Government Industry Award 2010
MA000112
$663.60
45.0%
60.0%
75.0%
90.0%
MA000010
$663.60
42.0%
55.0%
75.0%
88.0%
MA000059
$663.60
50.0%
60.0%
85.0%
95.0%
Manufacturing and Associated Industries and Occupations Award 2010
Meat Industry Award 2010
NCVER Report 3 final
1
Page 62
Award name
Award no.
Relevant
comparator
rate
Stage 1 rate
%
Stage 2 rate % Stage 3 rate % Stage 4 rate %
Mining Industry Award 2010
MA000011
$663.60
45.0%
55.0%
75.0%
88.0%
Miscellaneous Award 2010
MA000104
$663.60
55.0%
65.0%
80.0%
95.0%
Nursery Award 2010
MA000033
$663.60
50.0%
63.0%
75.0%
90.0%
Oil Refining and Manufacturing Award 2010
MA000072
$663.60
45.0%
55.0%
75.0%
88.0%
Plumbing and Fire Sprinklers Award 2010 (Plumbing)
MA000036
$663.60
37.5%
55.0%
70.0%
90.0%
Plumbing and Fire Sprinklers Award 2010 (Sprinkler pipe-fitting)
MA000036
$663.60
50.0%
55.0%
75.0%
90.0%
Port Authorities Award 2010
MA000051
$663.60
45.0%
55.0%
75.0%
88.0%
Racing Industry Ground Maintenance Award 2010
MA000014
$663.60
47.5%
60.0%
75.0%
95.0%
Rail Industry Award 2010 (Technical and Civil)
MA000015
$663.60
45.0%
55.0%
75.0%
88.0%
Rail Industry Award 2010 (Operations)
MA000015
$671.00
45.0%
55.0%
75.0%
88.0%
Registered and Licensed Clubs Award 2010
MA000058
$663.60
55.0%
65.0%
80.0%
95.0%
Restaurant Industry Award 2010
MA000119
$663.60
55.0%
65.0%
80.0%
95.0%
Salt Industry Award 2010
MA000107
$663.60
45.0%
55.0%
75.0%
88.0%
Stevedoring Industry Award 2010
MA000053
$658.80
42.0%
55.0%
75.0%
88.0%
Sugar Industry Award 2010 (Milling and Distilling)
1
MA000087
$663.60
42.0%
55.0%
75.0%
88.0%
Sugar Industry Award 2010 (Bulk Handling)
MA000087
$717.28
42.0%
55.0%
75.0%
88.0%
Telecommunications Services Award 2010
MA000041
$704.60
42.0%
55.0%
75.0%
88.0%
Textile, Clothing, Footwear and Associated Industries Award 2010
MA000017
$663.60
50.0%
65.0%
75.0%
85.0%
Timber Industry Award 2010 (All except saw doctors)
MA000071
$663.60
50.0%
60.0%
75.0%
95.0%
Timber Industry Award 2010 (Saw doctors)
MA000071
$684.50
50.0%
60.0%
75.0%
90.0%
Vehicle Manufacturing, Repair, Services and Retail Award 2010 (Retail, service and repair) MA000089
$663.60
42.0%
55.0%
75.0%
88.0%
Vehicle Manufacturing, Repair, Services and Retail Award 2010 (Manufacturing)
MA000089
$663.60
42.0%
55.0%
75.0%
88.0%
Vehicle Manufacturing, Repair, Services and Retail Award 2010 (Advanced Engineering)
MA000089
$684.50
Water Industry Award 2010
MA000113
$663.60
45.0%
60.0%
75.0%
90.0%
Wine Industry Award 2010
MA000090
$663.60
42.0%
55.0%
75.0%
88.0%
Notes:
1 Where highest school level is Year 10 or below.
2 Hairdressing apprentices are paid at 35% of trades rate for first 3 months of apprenticeship, 45% for remainder of first year.
NCVER Report 3 final
Page 63
88.0%
Table A3
Wage levels for Apprentices—Queensland
Wage
level
Minimum training requirements on entry
% of tradesperson’s rate specified in the
industrial instrument
1
Prior to the attainment of the minimum training requirements specified for wage level 2
40
2
On attainment of 25% of the total competencies specified in the training plan for the relevant AQF certificate III qualification or 12
months after commencing the apprenticeship whichever is the earlier
55
3
On attainment of 50% of the total competencies specified in the training plan for the relevant AQF certificate III qualification or 12
months after commencing wage level 2 whichever is the earlier
75
4
On attainment of 75% of the total competencies specified in the training plan for the relevant AQF certificate III qualification or 12
months after commencing wage level 3 whichever is the earlier
90
5
On attainment of 100% of the total competencies specified in the training plan for the relevant AQF certificate III qualification or 12
months after commencing wage level 4 whichever is the earlier
100
6
On attainment of 100% of the total competencies specified in the training plan for the relevant AQF certificate IV qualification or 12
months after commencing wage level 5 whichever is the earlier
105
7
On attainment of 100% of the total competencies specified in the training plan for the relevant AQF diploma qualification or 12
months after commencing wage level 6 whichever is the earlier
110
Source: Order – Apprentices’ and Trainees’ Wages and Conditions (Excluding certain Queensland Government entities) 2003, Schedule 1
NCVER Report 3 final
Page 64
Table A4
Wage Levels for trainees—Queensland
Level
Trainee
registered for
AQF Level 1 or 2
qualifications
Trainee registered for AQF
Level 3 qualification
Trainee registered for AQF
Level 4 qualification
Trainee registered for AQF
Level 5 qualification
Trainee registered for AQF
Level 6 qualification
% Of
Relevant
Adult
Rate*
1
On entry
Prior to the attainment of the
minimum training requirements
specified for wage level 2
Prior to the attainment of the
minimum training requirements
specified for wage level 2
Prior to the attainment of the
minimum training requirements
specified for wage level 2
Prior to the attainment of the
minimum training requirements
specified for wage level 2
55
On attainment or completion of: (a)
AQF 1 & 2 competencies; or (b)
1/2 of the total competencies for
the relevant AQF 3 qualification; or
(c) 1/2 of the nominal duration of
the traineeship, whichever is the
earlier.
On attainment or completion of: (a)
AQF 1 & 2 competencies; or (b)
1/3 of the total competencies for
the relevant AQF 4 qualification; or
(c) 1/3 of the nominal duration of
the traineeship, whichever is the
earlier.
On attainment or completion of: (a)
AQF 1 & 2 competencies; or (b)
1/4 of the total competencies for
the relevant AQF 5 qualification; or
(c) 1/4 of the nominal duration of
the traineeship, whichever is the
earlier.
On attainment or completion of: (a)
AQF 1 & 2 competencies; or (b)
1/5 of the total competencies for
the relevant AQF 6 qualification; or
(c) 1/5 of the nominal duration of
the traineeship, whichever is the
earlier.
75
On attainment or completion of: (a)
AQF 3 competencies, (b) 2/3 of
the total competencies for the
relevant AQF 4 qualification; or (c)
2/3 of the nominal duration of the
traineeship, whichever is the
earlier.
On attainment or completion of: (a)
AQF 3 competencies, (b) 1/2 of
the total competencies for the
relevant AQF 5 qualification; or (c)
1/2 of the nominal duration of the
traineeship, whichever is the
earlier.
On attainment or completion of: (a)
AQF 3 competencies, (b) 2/5 of
the total competencies for the
relevant AQF 6 qualification; or (c)
2/5 of the nominal duration of the
traineeship, whichever is the
earlier.
100
On attainment or completion of: (a)
AQF 4 competencies; (b) 3/4 of
the total competencies for the
relevant AQF 5 qualification; or (c)
3/4 of the nominal duration of the
traineeship, whichever is the
earlier.
On attainment or completion of: (a)
AQF 4 competencies, (b) 3/5 of
the total competencies for the
relevant AQF 6 qualification; or (c)
3/5 of the nominal duration of the
traineeship, whichever is the
earlier.
105
On attainment or completion of: (a)
AQF 5 competencies, (b) 4/5 of
the total competencies for the
relevant AQF 6 qualification; or (c)
4/5 of the nominal duration of the
traineeship, whichever is the
earlier.
110
2
3
4
5
Source: Order - Apprentices’ and Trainees’ Wages and Conditions (Excluding certain Queensland Government entities) 2003, Schedule 1.
NCVER Report 3 final
Page 65
Table A5
List of pre-reform awards and NAPSAs used for calculating apprentice rates of pay
Industry
State
Reference Award
Award number
Vehicle manufacturing & repair
WA
Vehicle Builders Award 1971
AN160328
Motor vehicle retailing & repair
NT
Automotive Services (NT) Award 2002
AP818846CRN
Vehicle manufacturing
NSW, Qld, Vic., SA, Tas
Vehicle Industry Award 2000
AP801818CRN
Motor vehicle retailing & repair
NSW, Vic., Qld, SA, Tas, ACT
Vehicle Industry - Repair, Services and Retail Award 2002
AP824308CAV
All other industries
All states
Metal, Engineering and Assoc Industries Award 1998
AP789529
All industries
NSW
Building and Construction Industry (State) Award
AN120089
All industries
Vic.
National Building and Construction Award 2000
AP790741CRV
All industries
Qld
Building Construction Industry Award State 2003
AN140043
Civil construction
SA
National Building and Construction Award 2000
AP790741CRV
All other industries
SA
Building and Construction Industry (SA) Award
AN150670
Civil construction
WA
National Building and Construction Award 2000
AP790741CRV
All other industries
WA
Building trades (Construction) Award 1987
AN160034
Civil construction
Tas.
National Building and Construction Award 2000
AP790741CRV
All other industries
Tas.
Building and Construction Industry Award
AN170010
All industries
NT
Building and Construction Industry (NT) Award 2002
AP812941CRN
All industries
ACT
Building and Construction Industry (ACT) Award 2002
AP817145CRA
All industries
NSW
Electrical, Electronic and Comms Contracting Industry (State) Award
AN120191
All industries
Vic.
National Electrical, Electronic and Communications Contracting Industry Award
AP791396CRV
All industries
Qld
Electrical Contracting Industry Award - State 2003
AN140103
All industries
SA
National Electrical, Electronic and Communications Contracting Industry Award
AP791396CRV
All industries
WA
Electrical Contracting Industry Award 1978
AN160108
All industries
Tas.
National Electrical, Electronic and Communications Contracting Industry Award
AP791396CRV
All industries
NT
Electrical Engineering and Contracting Industries (NT) Award
AP819377CRN
All industries
ACT
National Electrical, Electronic and Communications Contracting Industry Award
AP791396CRV
NSW
Pastrycooks &c (State) Award
AN120410
Automotive & Engineering (ANZSCO 32)
Construction1 (ANZSCO 33)
Electro-technology (ANZSCO 34)
Food trades (ANZSCO 35)
Food manufacturing2
NCVER Report 3 final
Page 66
Industry
State
Reference Award
Award number
Accommodation
NSW
Hospitality Industry – Accom., Hotels, Resorts and Gaming Award 1998
AP738479CRV
Food & beverage services
NSW
Restaurants &c Employees (State) Award
AN120468
Food manufacturing
Vic.
Pastrycooks (Victoria) Award 1999
AP792620CRV
Accommodation
Vic., Tas., NSW, Qld
Hospitality Industry – Accom., Hotels, Resorts and Gaming Award 1998
AP738479CRV
Food & beverage services
Qld
Hospitality Industry – Rest, Catering and Allied Estab Award SE Qld
AN140144
Food & beverage services
SA
Cafes and Restaurants (South Australia) Award
AN150025
Food & beverage services
Vic.
Accommodation, Cafes & Restaurants Industry Sector – Minimum Wage Order – Victoria 1997
AP767284
Food manufacturing
Qld
Baking Industry (Southern & Central)
AN140024
Food manufacturing
SA
Cake and Pastry Baking Trades Award
AN150026
Food manufacturing
WA
Pastrycooks’ Award
AN160242
Food & Beverage services
WA
Restaurant, Tearoom and Catering Workers’ Award
AN160276
Retail trade, wholesale trade3
WA
Meat Industry (State) Award 2003
AN160350
Food & beverage services
Tas.
Restaurant Keepers Award
AN170086
Retail trade
Tas.
Meat Processing Industry Award
AN170058
Food manufacturing
NT
Baking and Pastrycooking Industry (NT) Award 2002
AP819011CRN
Food & beverage services, accommodation
NT
Hotels, Motels, Wine Saloons, Catering, Accommodation, Clubs and Casino Employees (NT) Award
AP812953CRN
Food manufacturing
ACT
Bakers (ACT) Award 1998
AP769420CRA
Food & beverage services
ACT
Liquor and allied industries Catering, Cafe, Restaurant, Etc (ACT) Award 1998
AP787016CRA
Retail trade
ACT
Butchers Shops etc (Private Employees ACT) Award 2003
AP831172
Retail trade
NSW, Vic., Qld, SA, NT
Federal Meat Industry (Retail and Wholesale) Award 2000
AP805114CRV
Landscaping, nurseries, greenk., gardening
NSW
Landscape Gardeners & C. Award
AN120308
Landscaping, nurseries, greenk., gardening
Vic.
Personal & Other Community Services Ind Sector Min Wage Order
AP793092
Landscaping, nurseries, greenk., gardening
Qld
Nursery Award
AN140192
Landscaping, nurseries, greenk., gardening
SA
Horticulture Industry (Nursery and Landscape) Award
AN150065
Landscaping, greenk., gardening
WA
Landscape Gardening Industry Award
AN160190
Nurseries
WA
Horticultural (Nursery) Industry Award 1980
AN160158
Landscaping, nurseries, greenk., gardening
NT
Gardening, Nurseries and Greenkeeping (NT) Award
AP782197CRV
Landscaping, nurseries, greenk., gardening
ACT
AWU Miscellaneous Workers (ACT) Award
AP765606CRA
Landscaping, greenk., gardening
Tas.
Horticulturists Award
AN170045
Nurseries
Tas.
Plant Nurseries Award
AN170077
Horticultural workers4(ANZSCO 36)
Other technicians and trades workers (ANZSCO
39)
NCVER Report 3 final
Page 67
Industry
State
Reference Award
Award number
Personal & other services
NSW
Hairdressers’ State Award
AN120242
Personal & other services
Vic.
Hairdressing and Beauty Services – Victoria – Award 2001
AP806816CRV
Personal & other services
Qld
Hairdressers’ Industry Award – State 2003
AN140140
Personal & other services
SA
Hairdressers and beauty salons award
AN150062
Personal & other services
WA
Hairdressers Award 1989
AN160153
Personal & other services
Tas.
Hairdressing, health and Beauty industry award
AN170042
Personal & other services
NT
Hairdressing and Beauty Industry (NT) Award
AP818691CRN
Personal & Other Services
ACT
Hairdressing and Beauty Industry (ACT) Award
AP783495CRA
All states
Graphic Arts Award
AP782505
All states
Clothing Trades Award 1999
AP772144CAV
Wood etc manufacturing & cabinetmaking
Qld
Furniture and Allied Trade Award - State 2003
AN140128
Wood etc manufacturing & cabinetmaking
WA
Furniture Trades Industry Award
AN160137
Wood etc manufacturing & cabinetmaking
ACT
Furnishing Industry National Award
AP825280CAV
Wood etc manufacturing & cabinetmaking
NSW, Vic., SA, Tas.
Furnishing Industry National Award
AP825280CAV
Hairdressing
Printing trades
Printing, info media & telecommunications
Textile, clothing and footwear trades
TCF Manufacturing
Wood trades
Notes:
1 The National Building and Construction Award 2000 applied only to civil construction. However, the terms of the award did not apply to apprentices in Qld or NSW (cl 20.7).
2 According to the NCVER Apprentice and Trainee Collection, the majority of food apprentices working in food manufacturing are apprentice bakers.
3 According to the NCVER Apprentice and Trainee Collection, the majority of food apprentices working in retail and wholesale trade are apprentice butchers.
4 The majority of animal trades are employed on traineeships, not apprenticeships.
NCVER Report 3 final
Page 68
Table A6
Award rates of pay by award and stage
Allowances
added to
the base
rate
Year 1
Year 2
Year 3
Year 4
Reference
Rate
(weekly)
AN160328
$267.79
$350.68
$478.20
$561.09
$637.60
AP818846CRN
$267.79
$350.68
$478.20
$561.09
$637.60
Vehicle Industry Award 2000 (All states except WA)
AP801818CRN
$273.55
$356.43
$483.95
$566.84
$637.60
Vehicle Industry - Repair, Services and Retail Award 2002 (NSW,
Vic., Qld, SA, Tas., ACT)
AP824308CAV
$267.79
$350.68
$478.20
$561.09
$637.60
Metal, Engineering and Assoc Industries Award 1998 (All states)
AP789529
$273.54
$356.43
$483.95
$566.83
$637.60
$13.68
$312.00
$356.43
$483.95
$566.83
varies
$13.68
$329.13
$382.96
$483.95
$595.04
varies
$13.68
$270.89
$367.70
$464.51
$529.05
$637.70
$23.30
$7.70
$21.70
$340.13
$404.67
$533.75
$630.56
$637.70
$25.80
$7.70
$23.90
Reference Award
Award number
Vehicle Builders Award 1971(WA)
Automotive Services (NT) Award 2002
Starting
rate
– Year 11
– Year 12
Tool
allowance
Allowances
fully paid
$13.70
Building and Construction Industry (State) Award (NSW)
AN120089
National Building and Construction Award 2000 (Vic.)
AP790741CRV
Building Construction Industry Award State 2003 (Qld)
AN140043
$303.16
$399.97
$529.05
$625.86
$637.70
$23.30
$7.70
$21.70
National Building and Construction Award 2000 (SA)
AP790741CRV
$340.13
$404.67
$533.75
$630.56
$637.70
$25.80
$7.70
$23.90
Building and Construction Industry (SA) Award (SA)
AN150670
$335.43
$399.97
$529.05
$625.86
$637.70
$23.30
$7.70
$21.70
National Building and Construction Award 2000 (WA)
AP790741CRV
$320.77
$404.67
$533.75
$617.65
$637.70
$25.80
$7.70
$23.90
Building trades (Construction) Award 1987 (WA)
AN160034
$315.47
$399.37
$528.45
$612.35
$637.70
$22.70
$7.70
$21.70
National Building and Construction Award 2000 (Tas.)
AP790741CRV
$294.95
$404.67
$533.75
$630.56
$637.70
$25.80
$7.70
$23.90
Building and Construction Industry Award (Tas.)
AN170010
$290.25
$399.97
$529.05
$625.86
$637.70
$23.30
$7.70
$21.70
Building and Construction Industry (NT) Award 2002
AP812941CRN
$302.92
$372.05
$510.31
$614.01
$691.30
$26.40
Building and Construction Industry (ACT) Award 2002
AP817145CRA
$344.55
$442.81
$541.08
$639.34
$637.60
$25.80
$17.50
$23.95
Electrical, Electronic and Comms Contracting Industry (State) Award
(NSW)
AN120191
$267.82
$351.51
$492.89
$560.93
$654.85
$12.30
$21.15
National Electrical, Electronic and Communications Contracting
Industry Award (Vic.)
AP791396CRV
$312.14
$394.29
$517.52
$599.67
$684.60
$17
$21.30
Electrical Contracting Industry Award – State 2003 (Qld)
AN140103
$264.51
$347.20
$457.46
$533.26
$689.10
$22.70
$21.30
National Electrical, Electronic and Communications Contracting
Industry Award (SA)
AP791396CRV
$341.61
$428.13
$561.23
$647.74
$665.50
$12.50
$49.60
Electrical Contracting Industry Award 1978 (WA)
AN160108
$280.12
$362.41
$472.12
$554.40
$685.70
$12.70
National Electrical, Electronic and Communications Contracting
Industry Award (Tas.)
AP791396CRV
$310.66
$392.37
$514.93
$596.64
$680.90
$17
Electrical Engineering and Contracting Industries (NT) Award
AP819377CRN
$274.29
$337.95
$465.27
$560.76
$636.60
$19.65
National Electrical, Electronic and Communications Contracting
Industry Award (ACT)
AP791396CRV
$334.72
$435.02
$535.33
$635.63
$668.70
$12.50
Pastrycooks &c (State) Award (NSW)
AN120410
$299.62
$341.06
$387.41
$476.12
$605.90
Hospitality Industry – Accom., Hotels, Resorts and Gaming Award
AP738479CRV
$350.68
$414.44
$510.08
$605.72
$637.60
NCVER Report 3 final
$275.59a
$311.79b
$301.28b
Page 69
$21.30
$21.30
Reference Award
Award number
Starting
rate
Year 1
Year 2
Year 3
Year 4
Reference
Rate
(weekly)
Tool
allowance
Allowances
added to
the base
rate
Allowances
fully paid
1998 (NSW)
Restaurants &c Employees (State) Award (NSW)
AN120468
$297.34
$349.06
$433.09
$517.12
$646.40
Pastrycooks (Victoria) Award 1999
AP792620CRV
$318.80
$414.44
$510.08
$605.72
$637.60
Hospitality Industry – Accom., Hotels, Resorts and Gaming Award
1998 (Vic.)
AP738479CRV
$350.68
$414.44
$510.08
$605.72
$637.60
Hospitality Industry – Rest., Catering and Allied Estab Award SE Qld
AN140144
$255.04
$350.68
$478.20
$573.84
$637.60
Cafes and Restaurants (South Australia) Award
AN150025
$350.68
$414.44
$494.14
$557.90
$637.60
Accommodation, Cafes & Restaurants Industry Sector - Minimum
Wage Order - Victoria 1997
AP767284
$350.56
$414.30
$509.90
$605.51
$637.38
Baking Industry (Southern & Central Qld) Award
AN140024
$255.04
$350.68
$478.20
$573.84
$637.60
Cake and Pastry Baking Trades Award (SA)
AN150026
$420.82
$382.56
$446.32
$541.96
$637.60
Pastrycooks’ Award (WA)
AN160242
$260.99
$341.77
$466.05
$546.83
$621.40
Restaurant, Tearoom and Catering Workers’ Award (WA)
AN160276
$267.79
$350.68
$478.20
$561.09
$637.60
Meat Industry (State) Award 2003 (WA)
AN160350
$255.04
$318.80
$478.20
$605.72
$637.60
Restaurant Keepers Award (Tas.)
AN170086
$318.80
$414.44
$510.08
$573.84
$637.60
Meat Processing Industry Award (Tas.)
AN170058
$327.80
$423.44
$468.07
$614.72
$637.60
Baking and Pastrycooking Industry (NT) Award 2002
AP819011CRN
$289.20
$361.50
$506.10
$614.55
$723.00
Hotels, Motels, WIne Saloons, Catering, Accommodation, Clubs and
Casino Employees (NT) Award
AP812953CRN
$353.87
$439.94
$490.95
$554.71
$637.60
Bakers (ACT) Award 1998
AP769420CRA
$255.04b
$286.92
$382.56
$478.20
$573.84
$637.60
Liquor and allied industries Catering, Cafe, Restaurant, etc (ACT)
Award 1998
AP787016CRA
$255.04b
$286.92
$382.56
$478.20
$573.84
$637.60
Butchers Shops etc (Private Employees ACT) Award 2003
AP831172
$247.44b
$278.37
$371.16
$463.95
$556.74
$618.60
Federal Meat Industry (Retail and Wholesale) Award 2000
AP805114CRV
$318.80
$414.44
$541.96
$605.72
$637.60
Landscape Gardeners & C. Award (NSW)
AN120308
$341.33
$403.39
$465.45
$558.54
$620.60
Personal & Other Community Services Ind Sector Min Wage Order
AP793092
$302.76
$382.43
$478.04
$605.51
$637.38
Nursery Award (Qld)
AN140192
$240.44
$330.61
$450.83
$540.99
$601.10
Horticulture Industry (Nursery and Landscape) Award (SA)
AN150065
$318.80
$382.56
$478.20
$573.84
$637.60
Landscape Gardening Industry Award (WA)
AN160190
$248.51
$325.44
$443.78
$520.70
$591.70
Horticultural (Nursery) Industry Award 1980 (WA)
AN160158
$260.65
$341.33
$465.45
$546.13
$620.60
Gardening, Nurseries and Greenkeeping (NT) Award
AP782197CRV
$255.04
$318.80
$446.32
$541.96
$637.60
AWU Miscellaneous Workers (ACT) Award
AP765606CRA
$323.97
$419.61
$515.25
$610.89
$637.60
$12.85
Horticulturists Award (Tas.)
AN170045
$255.22
$331.56
$449.00
$525.34
$587.20
$8.60
Plant Nurseries Award (Tas.)
AN170077
$276.89
$359.78
$487.30
$570.19
$637.60
$9.10
Hairdressers’ State Award (NSW)
AN120242
$350.68
$446.32
$541.96
$573.84
$637.60
NCVER Report 3 final
$318.80b
$292.09a
$255.04a
Page 70
$9.00
$24.20
Reference Award
Award number
Starting
rate
Year 1
Year 2
Year 3
Year 4
Reference
Rate
(weekly)
Hairdressing and Beauty Services – Victoria – Award 2001
AP806816CRV
$223.16a
$286.92
$350.68
$490.95
$573.84
$637.60
Hairdressers’ Industry Award – State 2003 (Qld)
AN140140
$255.04
$350.68
$478.20
$573.84
$637.60
Hairdressers and beauty salons award (SA)
AN150062
$274.17
$350.68
$433.57
$548.34
$637.60
Hairdressers Award 1989 (WA)
AN160153
$278.16
$347.70
$486.78
$591.09
$695.40
Hairdressing, health and Beauty industry award (Tas.)
AN170042
$267.79
$350.68
$478.20
$573.84
$637.60
Hairdressing and Beauty Industry (NT) Award
AP818691CRN
$255.04
$318.80
$446.32
$541.96
$637.60
Hairdressing and Beauty Industry (ACT) Award
AP783495CRA
$255.04
$350.68
$446.32
$541.96
$637.60
Graphic Arts Award (All states)
AP782505
$302.86
$382.56
$462.26
$557.90
$637.60
Clothing Trades Award 1999 (All states)
AP772144CAV
$350.68
$382.56
$446.32
$510.08
$637.60
Furniture and Allied Trade Award – State 2003 (Qld)
AN140128
$271.04
$366.68
$494.20
$589.84
$637.60
$16.00
Furniture Trades Industry Award (WA)
AN160137
$280.09
$362.98
$490.50
$573.39
$637.60
$12.30
Furnishing Industry National Award (ACT)
AP825280CAV
$293.04
$377.84
$506.00
$589.53
$637.60
$25.25
Furnishing Industry National Award (NSW, Vic., SA, Tas.)
AP825280CAV
$281.19
$365.99
$494.15
$577.68
$637.60
$13.4
$243.39b
$223.16a
$318.80b
Tool
allowance
Notes: a = first 3 months; b = first 6 months.
Source: Based on calculations from the relevant awards. Award rates of pay are as at March 2009.
Table A7
Adult apprentice rates of pay
Reference Award
Award number
Year 1
Year 2
Year 3
Year 4
Vehicle Industry Award 2000
AP801818CRN
495.75
551.34
570.78
595.06
Vehicle Industry –Repair, Services and Retail Award 2002
AP824308CAV
519.40
543.80
560.50
583.00
Metal, Engineering and Assoc Industries Award 1998
AP789529
488.73
551.32
570.76
595.04
Electrical Contracting Industry Award 1978
AN160108
472.12
472.12
472.12
554.40
Pastrycooks’ Award
AN160242
449.69
449.69
466.05
546.83
Hairdressers and beauty salons award
AN150062
345.13
350.68
433.57
548.34
Hairdressers Award 1989
AN160153
278.16
347.70
486.78
591.09
Graphic Arts Award
AP782505
522.83
554.71
586.59
637.60
Furnishing Industry National Award
AP825280CAV
557.65
588.25
620.77
653.29
Furnishing Industry National Award (ACT)
AP825280CAV
545.80
576.40
608.92
641.44
Source: Based on calculations from the relevant awards. Award rates of pay are as at March 2009.
NCVER Report 3 final
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Allowances
added to
the base
rate
Allowances
fully paid
Table A8
Wage level definitions for traineeships based on occupation, industry and sector of employment
Occupation (2-digit level)
Industry (or sector)
12 Farmers and farm
managers
23 Design, engineering,
science & transport profs
Agriculture & mining
36 Animal and horticulture
(trainees only)
61 Sales reps & agents
Agriculture
84 Farm, forestry and garden
workers
Qual
level
Wage
level
Primary training packages
I,II,III
C
Rural Production
I,II,III
C
Conservation and Land Management TP
I,II,III
C
Rural production, Racing
I,II,III
C
Rural production
I,II,III
C
Rural Production, Amenity Horticulture
14 Hospitality, retail and
service managers
Food retailing
I,II
B
Retail Services
31 Engineering, ICT &
science technicians
Food manufacturing, health care & social assistance
I,II,III
B
Australian Meat Industry TP and Health TP
39 Other trades and
technicians (trainees only)
Health care
I,II,III
B
Health TP
41 Health & welfare support
workers
Health care
I,II,III
B
Health TP
42 Carers and aides
Health care
I,II,III
B
Health TP
44 Protective service workers
Private sector (correctional services mainly in public sector)
I,II,III
B
Property Services
45 Sports & personal service
workers
Personal and other services
II
B
Beauty
45 Sports & personal service
workers
Other transport, education & training, arts & recreation services
I,II,III
B
Outdoor Recreation, Fitness Industry
59 Other clerical &
administrative workers
Retail
I,II
B
Retail Service
59 Other clerical &
administrative workers
Transport, postal & warehousing
I,II
B
Transport and Logistics
61 Sales reps & agents
Rental, hiring & real estate services, building cleaning, pest control & other support
services
I,II,III
B
Property Services
62 Sales assistants
Motor Vehicle, parts & fuel retailing
I,II,III
B
Auto Industry Retail, Service and Repair
62 Sales assistants
All other retail
I,II
B
Retail Services
63 Sales support workers
I,II
B
Retail Services
72 Mobile plant operators
II
B
Civil Construction and Furnishing Industry
73 Road and rail drivers
I,II
B
Transport and Logistics
74 Storepersons
I,II
B
Transport and Logistics
81 Cleaners & laundry
workers
Personal and other services
I,II
B
Textile, Clothing Footwear (Dry Cleaning)
81 Cleaners & laundry
All other industries
I,II,III
B
Asset Maintenance TP (Cleaning)
NCVER Report 3 final
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Industry (or sector)
Qual
level
Wage
level
Primary training packages
83 Factory process workers
Food manufacturing
II
B
Meat Industry
83 Factory process workers
Other agriculture, forestry and fishing; wood and paper manufacturing, furniture and other
manufacturing
I,II,III
B
Forest & Forest Products, Furnishing Industry
84 Farm, forestry and garden
workers
Other agriculture, forestry and fishing; building cleaning, pest control & other support
services; construction services
I,II,III
B
Forestry and Gardening/Landscaping TP
89 Other labourers
All industries except agriculture, forestry & fisheries; mining;
food manufacturing, textile manufacturing & printing; construction; transport, postal &
warehousing; information media & telecommunications,
financial & insurance services, professional scientific & technical services
I,II,III
B
Automotive Industry Retail, Service and Repair; Caravan Industry,
Electro-technology Industry, Gas Industry
89 Other labourers
Transport, postal & warehousing
I,II
B
Transport and Logistics TP
I,II,III
A
Occupation (2-digit level)
workers
All other occupations except those counted as apprenticeships
Note: Training packages were aligned with occupation, industry and sector combinations on the basis of data from the NCVER Apprentice and Trainee Collection.
NCVER Report 3 final
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Table A9
Trainee wage rates used in the analysis
Weekly rates
Hourly rates
Highest yr of schooling completed
Highest Yr of Schooling completed
Wage level A
Yr 10
Yr 11
Yr 12
Yr 10
Yr 11
Yr 12
School leaver
$245.10
$269.04
$323.38
$8.06
$8.85
$10.64
Plus 1 yr out of school
$269.04
$323.38
$375.44
$8.85
$10.64
$12.35
Plus 2 yrs out of school
$323.38
$375.44
$437.38
$10.64
$12.35
$14.39
Plus 3 yrs out of school
$375.44
$437.38
$500.84
$12.35
$14.39
$16.48
Plus 4 yrs out of school
$437.38
$500.84
$14.39
$16.48
Plus 5 yrs out of school
$500.84
$16.48
Highest yr of schooling completed
Highest yr of schooling completed
Wage level B
Yr 10
Yr 11
Yr 12
Yr 10
Yr 11
Yr 12
School leaver
$245.10
$269.04
$313.88
$8.06
$8.85
$10.33
Plus 1 yr out of school
$269.04
$313.88
$360.24
$8.85
$10.33
$11.85
Plus 2 yrs out of school
$313.88
$360.24
$423.70
$10.33
$11.85
$13.94
Plus 3 yrs out of school
$360.24
$423.70
$482.98
$11.85
$13.94
$15.89
Plus 4 yrs out of school
$423.70
$482.98
$13.94
$15.89
Plus 5 yrs out of school
$482.98
$15.89
Highest yr of schooling completed
Highest yr of schooling completed
Wage Level C
Yr 10
Yr 11
Yr 12
Yr 10
Yr 11
Yr 12
School leaver
$245.10
$269.04
$311.60
$8.06
$8.85
$10.25
Plus 1 yr out of school
$269.04
$311.60
$349.60
$8.85
$10.25
$11.50
Plus 2 yrs out of school
$311.60
$349.60
$391.40
$10.25
$11.50
$12.88
Plus 3 yrs out of school
$349.60
$391.40
$437.76
$11.50
$12.88
$14.40
Plus 4 yrs out of school
$391.40
$437.76
$12.88
$14.40
Plus 5 yrs out of school
$437.76
Yr 11 or lower
Yr 12
Yr 11 or lower
Yr 12
School-based traineeships
$245.10
$269.04
$8.06
$8.85
Certificate IV traineeship
First year
Subs yrs
First year
Subs yrs
Wage Level A
$519.84
$539.60
$17.11
$17.76
Wage Level B
$501.22
$520.22
$16.49
$17.12
Wage Level C
$454.48
$471.58
$14.95
$15.52
Notes: Based on the National Training Wage Award rates as at March 2009.
NCVER Report 3 final
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Legislative and quality assurance
arrangements
Ron Mazzachi
NCVER Report 3 final
Page 75
Introduction
The purpose of this paper is to look at the legislative frameworks underpinning apprenticeships and
traineeships, and the relevant quality assurance arrangements. It begins with a discussion of the legislative
framework, which is rather complicated because of Australia’s federal structure with the responsibility for
training sitting with the states.
While these arrangements appear complicated and messy, our assessment is that they do not pose
substantive issues for apprenticeships and traineeships. The primary role of this legislation is to specify
the situations in which an employer can employ an individual under a contract of training rather than a
standard employment contract. This is important because it specifies when an employer can access the
industrial conditions pertaining to apprentices and trainees and the funding available from governments
(subsidies and tuition in particular).
The second part of the paper looks at quality assurance arrangements. There are three dimensions of
relevance. The first is the range of bodies which play a part; the second is the pivotal role of the training
contract and training plan, and the third is the Australian Quality Training Framework, which provides
the quality assurance mechanism for the formal training element of a contract of training.
The main point to emerge is that the AQTF treats apprenticeships and traineeships no differently from
other accredited training. Therefore what differentiates the quality assurance of apprenticeships and
traineeships is the training plan and the role of the field forces (that are more active in some states relative
to others). The extent to which training plans will be successful in underpinning the quality will depend
on the employer, the training provider, and perhaps the state regulators. As with all discussions of quality,
the fundamental issue remains over whether a compliance approach can guarantee quality or whether a
continuous improvement or excellence approach is more effective in actually improving quality.
NCVER Report 3 final
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Legislation
Since the constitutional authority for education and training rests formally with the states, each
jurisdiction has enacted legislation that establishes apprenticeships and traineeships (see below for the
current parliamentary acts). Other legislation may also apply, such as that relating to employment
conditions, equal opportunity, child protection and compulsory schooling, occupational health and safety,
building and construction, and road traffic. The training agreement is a legal contract, made under state
legislative provisions and associated regulations, which specify the rights and responsibilities of the
apprentice or trainee, the employer, and the registered training organisation (RTO) nominated to provide
the formal (off-the-job) component of the training program.
Closely linked to the legislation governing apprenticeships and traineeships is that which governs the
broader vocational education and training (VET) system. It includes the Budget appropriations for VET
by the state and Australian governments and the conditions that are attached to the expenditures made
from those appropriations. Equally important is the state legislation and regulations enacted to implement
the AQTF in each jurisdiction. Changes to the AQTF agreed by ministers may require changes in state
legislation, although some states are able to implement such changes through amendments to regulations,
without needing to change legislation.
To outside observers the legislative arrangements and regulations that support the operation of the
apprenticeship and traineeship system often seem complex and costly because of the need to implement
changes in eight jurisdictions, and possibly at Australian Government level also, to give effect to
nationally agreed changes (the introduction of New Apprenticeships—later called Australian
Apprenticeships—from the beginning of 1998 is an archetypal example). This does mean that new policy
developments can be protracted, but it also means that the agreement of interested parties has been
obtained before implementation. The cooperative arrangements involving the Australian Government
and state governments have largely been successful in overcoming the fact that constitutional authority
for VET rests with the states (Knight & Mlotkowski 2009).
The specific role of apprentice and trainee legislation
The training contract and the training plan proposal are the two central legal entities of the current
Australian apprenticeship system. The national and jurisdictional legislation is designed to support the
training contract between all of the parties involved in the apprenticeship; that is, the employer,
apprentice, and if relevant, their guardians and the RTO. The training plan proposal describes how the
RTO intends to train and assess the apprentice.
We have already noted that legislation can be primary (Acts of parliament) or subordinate (rules and
regulations). Primary legislation outlines the policy and principles of the legislation, whereas the
subordinate legislation deals with the administrative details.
Across jurisdictions legislation dealing with apprenticeships is usually encapsulated in more wide-ranging
general education or vocational education Acts. The current primary legislation includes:
 ACT: Training and Tertiary Education Act 2003
 NSW: Apprenticeship and Traineeship Act 2001
 NT: Northern Territory Employment and Training Act 1991
 Qld: Vocational Education, Training and Employment Act 2000
 SA: Training and Skills Development Act 2008
 Tas.: Vocational Education and Training Act 1994
NCVER Report 3 final
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 Victoria: Education and Training Reform Act 2006
 WA: Vocational education and Training Act 1996
The stated intent of the more wide-ranging education Acts usually includes the aspirational goals of the
vocational education system. By way of example we see in the case of Western Australia that the
Vocational Education and Training Act 1996, as amended in 2008, notes that the main objects of the Act are:
(a)
to establish a State training system for the effective and efficient provision of vocational education
and training to meet the immediate and future needs of industry and the community;
(b)
to provide for the registration of some providers of vocational education and training and the
accreditation of some vocational education and training courses;
(c)
to provide a means by which the State is able to meet its obligations under national arrangements
relating to vocational education and training;
(d)
to promote equality of opportunity to undertake vocational education and training;
(e)
to provide for research and development for the purposes of vocational education and training;
(f)
to allow for the operation of an open and competitive training market in this State;
(g)
to provide for people, such as apprentices, to be trained for some occupations under training
contracts with employers.
New South Wales is an exception, in that it has specific apprenticeship legislation that essentially only
addresses (g) of the WA Vocational Education and Training Act 1996. Separate legislation can allow more
specification in the handling of apprenticeship issues, whereas jurisdictions with more flexible legislation
rely instead on more regulation, policy and rules. Until recently this separation did not seem to confer any
particular advantage or disadvantage. However, with the move to a National VET Regulator it will be
easier for NSW to achieve regulation and registration of RTOs as it has separate apprentice and
vocational education and training legislation. Therefore apprentice legislation can remain with the
jurisdiction and the Vocational Education and Training Act 2005 legislation covering the registration of RTOs
will refer to a national level.
Whatever the approach, the areas covered by all primary or subordinate apprenticeship legislation include:
 a process to establish apprenticeships and traineeships. This covers the application process, how the
application will be dealt with by the jurisdiction, including withdrawals or other amendments to the
apprenticeship or traineeship. The training contract and the training plan proposal are central to this
process
 a statement of the responsibilities of employers who employ apprentices and trainees directly or
indirectly through host employment arrangements
 a statement of the responsibilities of apprentices and trainees
 conditions of training and employment, including reference to remuneration for persons employed as
apprentices and trainees and the preservation of conditions of employment of existing worker trainees
 a requirement for an ‘off the job’ training component
 rules that cover transfer, variation, suspension, cancellation and completion of apprenticeships and
traineeships
 administration requirements that include a register of apprentices and trainees, of group training
organisations, appointments of commissioners or similar
NCVER Report 3 final
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 proceedings about disputes and disciplinary matters, including complaints and their resolution, the
conduct of hearings, orders for compensation or prohibiting employers from entering into
apprenticeships and traineeships and also appeals processes
 the appointment and functions of industry training officers who help review apprentice plans and
their progress. These officers are conferred powers of entry to premises including search warrants.
There are implications for the obstruction of these officers
 the establishment of a board or tribunal or delegate with powers to administer contracts of training
and other regulatory requirements in relation to apprenticeships and traineeships
 the apportionment of fines and fees
 a process to establish Regulations.
Current jurisdictional legislation has continued to evolve to reflect changes in industry needs and the
policy affecting apprenticeships. Several more recent and important milestones were the incorporation of
trainees into apprenticeship legislation, the opening-up of the training market and the subsequent
introduction of the Australian Quality Training Framework (AQTF) in 2000. Other significant changes
include the introduction of apprentice training undertaken at school. Significant changes do not always
result in changes to the legislation as this can be time-consuming and expensive. Instead changes can be
brought about through the use of policy, rules and regulation. This can allow systems to achieve a more
nimble response.
We have already noted some inconsistencies between Commonwealth and state legislation in the previous
paper, particularly in the current award provisions that govern the vast majority of apprenticeships. Here
the award continues to specify base wage progression during the apprenticeship according to the duration
of service, although most state legislation instead embodies competency-based progression.
Amongst jurisdictions there is currently some variation in several areas, one of which covers part-time
apprenticeship provisions. For example, in South Australia averaging of hours is not permitted, whereas it
is possible in some other jurisdictions. There is also additional variation in part-time apprenticeships for
some occupations.
In another example noted in the national Apprenticeship/Trainee Training Contract template, NSW
legislation provides for ‘trainee apprenticeships’. Trainee apprentices do not undergo a probationary
period, being mainly established in the building and construction industry. The trainee apprentice may
work for various employers in the same industry at different times. The employer or employee can
terminate trainee apprenticeships on the period of notice specified in the relevant award. Trainee
apprentices complete the same on-the-job and off-the-job training as other apprentices and, at the
conclusion of the trainee apprenticeship, they receive the same qualifications and certification.
Also noteworthy is the approach to appeals against decisions of the regulators. Whereas NSW has a
separate tribunal constituted under the Act to review the decisions, jurisdictions like SA and WA refer
these matters to their respective Industrial Relations Commission. The commissions may also have a
panel advising them and which may sit with the commission to act as assessors in such proceedings.
Perhaps one of the greatest differences amongst jurisdictional practices can be seen in the process
whereby a qualification can become an apprenticeship/traineeship. These are sometimes known as
declared vocations or vocational training orders. Some jurisdictions such as the Northern Territory will
accept any qualification that the training package states is appropriate to be used as an apprenticeship (or
more specifically the jurisdiction will only reject qualifications that the training package states are not
appropriate for an apprenticeship or traineeship). Other jurisdictions such as Western Australia and New
South Wales have relatively simple processes when seeking for a qualification to gain apprenticeship
status. However, it is the requirement for an extensive consultation period with industry and employers
before the status as an apprenticeship is granted that is responsible for the long timeframe.
NCVER Report 3 final
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Recognising a qualification as an apprenticeship/traineeship does not mean that the jurisdiction will fund
the training through an existing RTO. There are hurdles to be overcome, usually including a
consideration of the priorities and workforce development strategies necessary to meet the jurisdiction’s
current and future work skills demands before it is appropriate to fund. Nevertheless if an employer
wants to take on an apprentice and the Commonwealth will fund the apprentice, the jurisdiction will
abide by and implement the legislation.
NCVER Report 3 final
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Quality assurance
We first list the myriad of organisations that have responsibility for various aspects of the apprenticeship
and traineeship system. We then consider the role of contracts of training and training plans before
discussing how the AQTF relates to apprenticeships and traineeships.
The players
Any discussion of quality assurance arrangements needs to start with some knowledge of the relevant
players. Governments establish, fund and manage institutions at various levels to implement Australia’s
highly structured and regulated apprenticeship and traineeship arrangements. The major institutions
involved here are:
 the Australian Government department(s) that are responsible for national tertiary education and
labour market policy and strategic directions (some of this was formerly provided by the Australian
National Training Authority), and for the disbursement of Australian Government funding for VET
 the eight state training authorities, which are responsible for implementing national policy (including
the AQTF and other regulatory arrangements), disbursing and managing public funding for VET,
and for policy and strategic directions within each jurisdiction. State training authorities also play an
important role in negotiating arrangements with other sectors, such as schools (in relation to schoolbased apprenticeships and traineeships, the VET in Schools program, and implementing legislative
‘earning-or-learning’ requirements)
 institutes of technical and further education (TAFE), which are established under state legislation and
are funded and managed by state training authorities. They are the major public providers of formal
training to apprentices and trainees and frequently have a local monopoly because of the high-cost
infrastructure needed for some apprenticeships and traineeships or because ‘thin markets’ make the
presence of more than one provider of a given program uneconomic
 other RTOS that receive public funding to deliver the formal component of apprenticeship and
traineeship programs. Some of these RTOs are regulated by the National Audit and Registration
Agency (NARA); otherwise this is done by the state regulatory bodies
 in most states, a network of regional offices and field staff who have direct contact with employers
and apprentices and trainees provide advice and support and assist with dispute resolution. States also
establish institutional arrangements to address complaints and disputes involving apprentices and
trainees or their employers
 the network of Australian Apprenticeship Centres (AACs), funded and managed by the Australian
Government, costing $0.183 billion in 2008–09 (Department of Education, Employment and
Workplace Relations 2009, p.341). These are agencies that are contracted to provide a range of
administrative services, particularly in relation to the Australian Apprenticeship Incentives Program.
The work of the AACs is coordinated with the services provided by state training authorities and
regional offices
 other organisations funded by the Australian Government, including industry skills councils (11 in
total, which collectively receive $40 million a year from the Australian Government) and a range of
consultative committees or organisations representing employers and employer associations, industry
bodies, employee representative bodies, and community organisations. This is intended to ensure that
the views of all interested players are taken into account when formulating VET—including
apprenticeship and traineeship—policy and strategic directions, and in the design of apprenticeship
and traineeship programs
 state- and regional-level representative bodies funded by state governments to ensure that a wide
range of views are taken into account when formulating VET policy and strategic directions,
including that which applies to apprenticeships and traineeships within each jurisdiction
NCVER Report 3 final
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Trying to ascertain the effect of each of these players on the quality of apprenticeships and traineeships is
akin to searching for the Holy Grail. However, we do know (see report 2) that completion rates differ
between states and that local arrangements matter. The general view is that the level of pastoral care
makes a difference and therefore those jurisdictions with larger and more active field forces tend to have
better outcomes.
The training contract and the training plan proposal
The obligations of all parties to an apprenticeship or traineeship are specified in the relevant jurisdictional
Act. The key documents are the nationally agreed training contract and the training plan proposal for the
apprenticeship/traineeship. Note that there may be some minor customisation of the training contract
and the training plan proposal to suit local needs.
The training contract
Australian Apprenticeships Centres are contracted by DEEWR to develop the Apprenticeship or
Traineeship Training Contract. This happens during a personal visit to employers together with the
apprentice/trainee and their guardians where relevant.
 Under the contract the employer agrees to employ, provide relevant work and train the
apprentice/trainee as agreed in the training plan, provide facilities and people to help train and
supervise the apprentice/trainee at work, and pay the appropriate wages to attend any training and
assessment with the nominated RTO.
 The employer also agrees to work with the RTO and the apprentice/trainee to help support the
apprentice/trainee’s progress and notify if there are changes to the plan.
 The apprentice/trainee agrees to do their job, and follow lawful instructions while achieving the
qualification and undertaking training and assessment.
 All parties agree to various administrative arrangements noted in the legislation including relevant
dates, terms and changes to these. The parties also agree to contract audits and to engage with any
dispute resolution process.
This is also the opportunity to remind the parties of the National Code of Good Practice for Australian
Apprentices, which details the rights and responsibilities of the signatories.
The training plan
The training plan describes who will provide training and undertake the assessment of the apprentice and
the timeframe. Under user choice arrangements, the employer and apprentice/trainee have the right to
decide which RTO will train the apprentice. It is this RTO, in consultation with the employer and
apprentice/trainee, who will decide the nature and sequence of delivery of the units of competence of the
qualification.
There is increasing emphasis on the need for the training plan to be a readily available and a current
working document. One way to achieve this is to require regular reviews of training plans. NSW is
seeking at least six-monthly reviews by the RTO. Similarly this emphasis on using the training plan as a
quality assurance and legislative tool is extending to requiring the RTO to take on increasing
responsibility:
 for verifying the workplace, facilities and personnel needed for the apprentice/trainee to successfully
undertake on-the-job training
 providing the employer and apprentice/trainee with regular updates on the apprentice/trainee’s
progress
NCVER Report 3 final
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 providing training and assessment in accordance with the AQTF, the training package, legislation and
the provisions of the approved providers contract
 notify the state training authority of any matter that may prevent the successful completion of the
training soon after the matter arises.
The employer is also required to allow the apprentice/trainee a minimum amount of time per week
(averaged over several weeks) to participate in training, whether on or off–the–job.
The AQTF
Apart from engaging with employers and apprenticeship centres, there are further obligations for RTOs,
in particular in undertaking the training and assessment of apprentices. These requirements are stipulated
in the AQTF, the AQF Handbook and what is variously referred to as the approved providers’ contract
with the state training authority. However, it is in the AQTF that the all important quality of training and
assessment is managed by each jurisdiction, under a common national code. The hallmark of this
framework is that it is strongly based on the ISO 9000 standards for quality management systems, which
are contextualised for vocational training and assessment.
The development of the AQTF in 2000 provided the first opportunity for a nationally consistent
approach to the registration of training providers in Australia. There were previous attempts by
jurisdictions to introduce quality assurance systems into the VET industry such as the Quality Endorsed
Training Organisation (QETO) in the 1990s (South Australian Department for Employment, Training
and Further Education 1997). QETO was based on the National Key Principles for Quality in VET
developed by the Australian National Training Authority (ANTA). However, the variety of approaches
and the generally reduced emphasis on regulation adopted by jurisdictions was not suited to the more
demanding needs for consistency. This is because the different approaches could not guarantee reliable
outcomes across all the jurisdictions particularly for providers who worked in more than one jurisdiction.
In the context of apprenticeships and traineeships, perhaps the most noticeable feature of the AQTF
Essential Standards for Registration is the total omission of any specific reference to apprentices. The
situation has not changed since the AQTF was first introduced or evolved over the last decade. It is not
because of an oversight or inability by jurisdictions to agree to the role of the AQTF. Instead it is the
simple reality that the training and assessment requirements for apprentices as specified in training
packages are no different from those of other students studying the same, or for that matter, any other
qualification. Furthermore, the employer or RTO must already comply with the relevant legislation for
apprenticeships in the guidance provided by the AQTF Essential Standards for Registration principally
under Condition 3 – Compliance with Legislation. Under this condition ‘The RTO must comply with
relevant Commonwealth, State or Territory legislation and regulatory requirements that are relevant to its
operations and its scope of registration’.
While the National Quality Council discourages jurisdictions to produce separate interpretations of rules
or AQTF requirements, in 2008 the then Western Australian Department of Education and Training
published a good practice guide to assist RTOs and employers to specifically help focus and improve
provision to apprentices and trainees (Western Australian Department of Education and Training 2008).
This document references the AQTF Essential Standards for Registration 2007. However, with respect to
the intent, there is not a great difference in the basic criteria from this version from the current AQTF
Essential Standards for Registration, which came into force in July 2010 (Department of Education,
Employment and Workplace Relations 2010). In the WA guide, several key areas are noted as relevant to
RTOs who train apprentices and these indicative good practices are noted in table 1. To maintain
currency we have re-interpreted these themes under the current AQTF 2010 Essential Standards for
continuing registration requirements.
NCVER Report 3 final
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Table 1
1
Indicative good practice for RTOs delivering training to apprentices noted in the WA good practice guide*
Area of practice
Relevant AQTF 2010 Essential Standards for continuing registration
Examples of relevant good practice for RTOs
Marketing
Condition 8 – Accuracy and Integrity of Marketing
The media and message is suitable for the target group.
The RTO must ensure its marketing and advertising of AQF qualifications to prospective clients is ethical,
accurate and consistent with its scope of registration. The NRT logo must be employed only in accordance
with its conditions of use.
The information provided is clear and concise.
The information provides an accurate picture of the training, assessment
and support services the RTO is offering.
The RTO monitors the effectiveness of the marketing and makes
improvements when necessary.
2
Negotiating the training
plan
Standard 1: The RTO provides quality training and assessment across all of its operations
1.3 Staff, facilities, equipment and training and assessment materials used by the RTO are consistent with
the requirements of the Training Package or accredited course and the RTO’s own training and
assessment strategies.
1.4 Training and assessment is delivered by trainers and assessors who:
(a) have the necessary training and assessment competencies as determined by the National Quality
Council or its successors, and
(b) have the relevant vocational competencies at least to the level being delivered or assessed, and
The employer and apprentice or trainee are actively engaged in developing
the training plan.
Meeting the needs of the apprentice or trainee is the focus of the
negotiation process.
The training plan is a living document that is used by all parties for the
duration of the training contract.
The RTO monitors the effectiveness of the training plan and makes
improvements when necessary.
(c) can demonstrate current industry skills directly relevant to the training/assessment being undertaken,
and
(d) continue to develop their Vocational Education and Training (VET) knowledge and skills as well as their
industry currency and trainer/assessor competence.
Standard 2: The RTO adheres to principles of access and equity and maximises outcomes for its clients.
2.4 Employers and other parties who contribute to each learner’s training and assessment are engaged in
the development, delivery and monitoring of training and assessment.
3
Enrolment and induction
Standard 2: The RTO adheres to principles of access and equity and maximises outcomes for its clients.
The information provided by the RTO is clear and accurate.
2.1 The RTO establishes the needs of clients, and delivers services to meet these needs.
The information and media is suitable for the client group.
2.3 Before clients enrol or enter into an agreement, the RTO informs them about the training, assessment
and support services to be provided, and about their rights and obligations.
Any induction process prepares the employer and apprentice or trainee to
maximise the learning experience.
2.4 Employers and other parties who contribute to each learner’s training and assessment are engaged in
the development, delivery and monitoring of training and assessment.
The information is regularly reviewed and the RTO consults with the clients
about the usefulness of the information.
Standard 3: Management systems are responsive to the needs of clients, staff and stakeholders, and the
environment in which the RTO operates.
The inclusion of an ApprentiCentre Apprenticeship Officer in the induction
process whenever possible.
3.3 The RTO monitors training and/or assessment services provided on its behalf to ensure that it
complies with all aspects of the AQTF Essential Conditions and Standards for Continuing Registration.
4
Providing and
supporting learning
opportunities
Standard 2: The RTO adheres to principles of access and equity and maximises outcomes for its clients.
2.4 Employers and other parties who contribute to each learner’s training and assessment are engaged in
the development, delivery and monitoring of training and assessment.
2.5 Learners receive training, assessment and support services that meet their individual needs.
Standard 1: The RTO provides quality training and assessment across all of its operations.
1.3 Staff, facilities, equipment and training and assessment materials used by the RTO are consistent with
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The learning activities and resources are tailored to the needs and learning
styles of the apprentice or trainee.
The learning is structured and builds logically (simple to complex) to
develop knowledge and skills.
The apprentice, trainee and employer are supported throughout the
learning process.
Learning is valued and recognised by the apprentice or trainee and
Area of practice
Relevant AQTF 2010 Essential Standards for continuing registration
Examples of relevant good practice for RTOs
the requirements of the Training Package or accredited course and the RTO’s own training and
assessment strategies.
employer.
1.4 Training and assessment is delivered by trainers and assessors who:
(a) have the necessary training and assessment competencies as determined by the National Quality
Council or its successors, and
(b) have the relevant vocational competencies at least to the level being delivered or assessed, and
All parties communicate effectively and regularly about the apprentice or
trainee’s progress using a Training Journal.
The learning is reviewed and improved based upon feedback from a range
of stakeholders including the apprentice, trainee, employer, RTO and
industry
(c) can demonstrate current industry skills directly relevant to the training/assessment being undertaken,
and
(d) continue to develop their Vocational Education and Training (VET) knowledge and skills as well as their
industry currency and trainer/assessor competence.
5
Providing and
supporting assessment
Standard 1: The RTO provides quality training and assessment across all of its operations.
1.5 Assessment including Recognition of Prior Learning (RPL):
(a) meets the requirements of the relevant Training Package or accredited course
(b) is conducted in accordance with the principles of assessment and the rules of evidence
(c) meets workplace and, where relevant, regulatory requirements
6
Certification
The assessment activities and resources are tailored to the needs of the
apprentice or trainee.
The apprentice, trainee and employer are supported throughout the
assessment process.
All parties communicate effectively and regularly about the apprentice or
trainee’s progress using a Training Journal.
(d) is systematically validated.
The assessment is reviewed and improved based upon feedback from a
range of stakeholders including the apprentice, trainee, employer, RTO and
industry.
Condition 6 – Certification & Issuing of Qualifications & Statements of Attainment
The RTO monitors the apprentice or trainee’s progress against the Training
Plan and issues a qualification or Statement of Attainment when required.
The RTO must issue to persons whom it has assessed as competent in accordance with the requirements
of the Training Package or accredited course, a qualification or statement of attainment (as appropriate)
that:
The qualification or Statement of Attainment meets the requirements of
Condition 6.
• meets the Australian Qualifications Framework (AQF) requirements
The issue of the qualification is timely.
• identifies the RTO by its national provider number from the National Training Information Service
The RTOs records for the apprentice accurately show the award of a
qualification and/or a Statement of Attainment.
• includes the Nationally Recognised Training (NRT) logo in accordance with the current
conditions of service.
The RTO must retain client records of attainment of units of competency and qualifications for a period of
thirty years.
7
Improving RTO learning,
assessment and support
services
Standard 1: The RTO provides quality training and assessment across all of its operations.
1.1 The RTO collects, analyses and acts on relevant data for continuous improvement of training and
assessment.
The RTOs systems promote the continual and systematic review of its
products, services and the way it operates.
All stakeholders in the apprenticeship or traineeship pathway have the
opportunity to provide feedback.
The focus of improvement actions is meeting the needs of the clients.
Continuous improvement activities have led to measurable improvements
to the business.
8
Maintaining records
Standard 3: Management systems are responsive to the needs of clients, staff and stakeholders, and the
environment in which the RTO operates.
3.2 The RTO uses a systematic and continuous improvement approach to the management of operations.
3.3 The RTO monitors training and/or assessment services provided on its behalf to ensure that it
complies with all aspects of the AQTF Essential Conditions and Standards for Continuing Registration.
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The RTO records are managed systematically.
The RTO keeps all required records and clearly understands the purpose
for any additional records they choose to keep.
Records are able to be accessed in a timely manner.
Area of practice
9
Compliance
Relevant AQTF 2010 Essential Standards for continuing registration
Examples of relevant good practice for RTOs
3.4 The RTO manages records to ensure their accuracy and integrity.
The record management system is consistently monitored to ensure it is
effective and improvements are made when required.
Condition 1 – Governance
When an RTO focuses on providing quality learning, assessment and
support services for its clients, it is likely to be compliant with the AQTF
Essential Standards for Registration, as these standards are focused on
providing quality outcomes for clients.
The RTO’s Chief Executive must ensure that the RTO complies with the AQTF Essential Conditions and
Standards for Continuing Registration and any national guidelines approved by the National Quality
Council or its successors. This applies to all of the operations within the RTO’s scope of registration, as
listed on the National Training Information Service.
The RTO’s senior officers and directors or substantial shareholders who are in a position to influence the
management of the organisation must satisfy fit and proper person requirements unless these
requirements have already been met through other legislative provisions.
The RTO must also explicitly demonstrate how it ensures the decision making of senior management is
informed by the experiences of its trainers and assessors.
* Western Australian Dept of Education and Training, Apprenticeships and traineeships – good practice guide for registered training organisations, DET, Perth, 2008.
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Given that the AQTF does not single out apprenticeships and traineeships for special attention, any
discussion of its effectiveness as a quality assurance mechanism for apprenticeships and traineeships
becomes a broader discussion of the AQTF and it role in assuring VET more generally. Such a discussion
is beyond the brief of this paper, but we include it in the appendix for the interested reader.
However, what is clear is that the quality of apprenticeships and traineeships is fundamentally going to
depend on the employer and the training provider, with the field staff there to provide pastoral care. It is
a fact of life that a compliance-focused quality assurance system may prevent the odd disaster but is
unlikely to in itself guarantee good quality. This will depend primarily on the culture and goodwill of the
employer and the training provider.
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References
Department of Education, Employment and Workplace Relations, Annual Report 2008—2009
Department of Education, Employment and Workplace Relations 2010, AQTF Essential Conditions and Standards for
Continuing Registration, viewes 20 October 2010,
<http://www.training.com.au/pages/menuitem5cbe14d51b49dd34b225261017a62dbc.aspx>.
Skills Australia 2009, Lifting quality in training, viewed 10 September 2010,
<http://www.skillsaustralia.gov.au/PDFs_RTFs/CommuniqueSIF.pdf>.
South Australian Department for Employment, Training and Further Education 1997, A guide to the quality system for
the SA VET sector, Department for Employment, Training and Further Education, Adelaide.
Department of Education and Training, Western Australia. (2008). Apprenticeships and traineeships – good practice guide for
Registered Training Organisations. Retrieved 08 30, 2010, from
http://www.vetinfonet.det.wa.edu.au/progdev/docs/good_practice_guide.v5.pdf
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Appendix: Some thoughts on quality
assurance and the AQTF
Using quality systems as a basis for regulation
Good training appears to be difficult to achieve directly using legislation.
This raises the interesting question about how sensible it is for governments to mandate that vocational
providers institute quality assurance in their organisations. To attempt to answer this issue we need to
understand the history of the quality movement. The most quoted example of the power of quality
systems is seen in the rise of the Japanese economy after the Second World War, which started in the
automobile industry. The theory of quality systems is steeped in the concept of gradually improving
product quality. This is done by collecting pertinent manufacturing and other related data. The approach
to quality became more focused in the mid-1980s with the worldwide adoption of the ISO 9000 set of
standards. This also permitted the quality movement to evolve out of the manufacturing environment and
be increasingly adopted by service industries such as health and education.
Thirty years later there are some powerful messages on the success of the adoption of quality systems by
organisations. A critical factor is that the quality culture must be owned and supported by the executive of
the organisation. This is a very important principle, as quality is both a culture as well as a set of ‘how to’
tools. Quality systems rarely succeed when only one of these elements is present and hence do not
flourish in situations where they are imposed.
Another issue implicit in the implementation of most quality systems is the fundamental role of the
internal audit process within organisations. Ideally, the role of the external auditor is to then oversee the
effectiveness of the organisation’s own findings from review and how it continually and systematically
improves its operations. Clearly the effectiveness of this role must be questionable, where the external
auditor instead needs to impose the quality agenda.
A final issue with quality systems is that, when first introduced, the standards and the auditing of these
standards were heavily focussed on procedures and compliance to these procedures. This meant auditors
often adopted a ‘tick and flick’ approach to auditing. An unfortunate consequence is that ‘tick and flick’
was often seen as a satisfactory tool for devising and implementing regulation, since much legislation
invariably requires that something has to be done and visible records need to be maintained to show that
this has occurred. This is where the legislative links to ISO Standards appear to coincide.
However the ISO 9000 Standards have evolved and there is an increasing focus on the outcomes of the
quality systems used by organisations, and hence the auditing of these outcomes. This means that ‘right
and proper’ is displaced by ‘fit for purpose’ for the particular context. The AQTF has also evolved and
while there is an increasing focus on outcomes, it still maintains a strong compliance base; for example,
the conditions imposed on RTOs which include governance, financial management, insurance and
integrity in marketing. The question here is that can these two often potentially contradictory approaches
coexist in the one set of standards?
The recent experience of AQTF auditors is that this dual focus makes the registration of RTOs more
challenging, particularly as the auditor needs to understand the business and what it is trying to achieve
when accessing outcomes during an audit. To do this objectively the auditor needs to use the data
generated by the business (if indeed these actually exist!) to show continuous improvement. It is difficult
to do this in just one business but to apply this systematically across many different businesses and to
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attempt to compare them is potentially a nightmare. This issue is perhaps best demonstrated in what is
acknowledged as the most critical element in the AQTF:
Standard 1: The RTO provides quality training and assessment across all of its operations
1.4 Training and assessment is delivered by trainers and assessors who:
(a) have the necessary training and assessment competencies as determined by the National Quality
Council or its successors, and
(b) have the relevant vocational competencies at least to the level being delivered or assessed, and
(c) can demonstrate current industry skills directly relevant to the training/assessment being undertaken,
and
(d) continue to develop their Vocational Education and Training (VET) knowledge and skills as well as
their industry currency and trainer/assessor competence.
1.5 Assessment including Recognition of Prior Learning (RPL):
(a) meets the requirements of the relevant Training Package or accredited course
(b) is conducted in accordance with the principles of assessment and the rules of evidence
(c) meets workplace and, where relevant, regulatory requirements
(d) is systematically validated.
The experience of the NQC is that these elements are the most problematic to audit but, as shown above,
are some of the most critical to apprentice success. This is also an area where ‘ticking the box’ gives no
guarantee whatsoever that the all important training and assessment will produce good outcomes. Instead
processes need to probe more deeply. The auditor needs to be open to a wide range of equally valid
practice options, dependent on the circumstances or market niche.
Increasing the effectiveness of apprenticeship system through
regulation
We are now faced with several key issues that would clearly help to increase the effectiveness of
apprenticeship system but would best be achieved by improvements to the way the AQTF is
implemented. These include:
 an effective separation of the compliance and continuous improvement components of the existing
AQTF by the new VET regulator and a re-adaptation of the external auditing and assessment of these
components
 an enhancement of the existing AQTF Excellence standards to recognise and foster continuous
improvement but using a peer review process
 an increased use of moderation and validation strategies in assessment or the introduction of a greater
level of externally supervised summative assessment
We now briefly consider each issue.
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Separation of the compliance and continuous improvement components of the
existing AQTF
The current AQTF has two components: one relates to compliance conditions with the other addressing
the continuous improvement of the organisation’s core activities. We have shown it is quite appropriate
to have ‘conditions of registration’ that need to be met as part of training and assessment by RTOs
regardless of whether the student is an apprentice or not. It is these ‘conditions’ that are more amenable
to traditional compliance auditing.
It is clear that a number of the current standards still have significant elements of compliance. This
includes many of the elements of Standards 2 and 3, which are concerned with meeting specific
requirements. It may be plausible to bundle these elements to be reviewed in a similar fashion as if they
were part of the conditions of registration. The role of an external auditor should be to assure that this is
happening effectively. It could involve a combination of on- and off-site review. It could also be
enshrined in national legislation.
Enhancement of the existing AQTF Excellence standards to recognise and foster
continuous improvement
We argue that the core aspects of RTOs about which we might wish to be assured may need to be
engaged quite differently as they are actually about the effectiveness of the RTO in its niche. This cannot
be audited with a compliance methodology. It needs to be assessed by very different principles and at a
different time and space, which could involve peers and industry experts. In this sense it would be
something between the Institute of Trades Skills Excellence model and the approaches used very
successfully in higher education. These principles are also more akin to the Business Excellence principles
to which many companies worldwide are now aspiring. These include the US Baldrige or the UK
Investors in Excellence models. Australia has been slow to capitalise on these directions, yet the AQTF
has already developed a provisional set of Excellence standards that have been piloted.
As this performance information would be publically available the consequence would be that the
marketplace now has the potential to decide about the quality of the product from the RTO as assessed
by its peers and stakeholders.
Increased use of moderation and validation strategies
In the critical areas of delivery and assessment of the training outcomes, whether there is enough
objectivity in having the same staff member involved in the training and the summative assessment of the
student has been questioned. This concern is compounded because moderation is not a mandatory
requirement in the AQTF, nor are assessment processes necessarily well validated. Furthermore, despite
having a pivotal role in developing training package qualifications, apart from those licensed areas,
industry is often conspicuously absent in the assessment process (Skills Australia 2009) and perhaps even
contemptuous of it.
The underlying philosophy in each of these key areas has been questioned by a variety of commentators
and the question of whether an independent summative assessment system in Australia is called for. Such
an approach was suggested by the recent OECD review. We suspect that significant improvements to the
quality of assessment processes and the introduction of more stringent approaches to moderation and
validation may be the preferred option. This is certainly where NQC seems to be headed with the recent
work it has completed and published.
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