More occupations added to apprentice priority list

The Government has recently announced some changes to the Australian Apprenticeships incentives program with more skills added to the priority occupation list and a new wage subsidy rate.

The recent expansion of the Australian Apprenticeship Priority List saw 34 extra occupations added to the overall list, meaning more people now qualify for a higher wage subsidy under the apprentice wage subsidy scheme.

The system has also been simplified to feature just two categories: priority or non-priority occupations, instead of three categories before which also took into account the geographic location of the apprentice and employer.

Under the revamped scheme, which came into effect in January 2023, the Government will subsidise 10 per cent of the apprentice’s wage for the first and second year (up to $1500 per quarter). In the third year, the rate will be five per cent, up to $750 per quarter.

For occupations that are not on the list, there is a hiring incentive of $1750.

Out of the new occupations added, eight are building and construction specific, including Electronic Equipment Trades Worker, Electronic Instrument Trades Worker (Special Class), Construction Estimator, Fire Protection Equipment Technician, Mechanical Engineering Draftsperson, Mechanical Engineering Technician, Technicians and Trades Workers (not elsewhere classified) and Gardener (general).

Master Builders Acting CEO, Shaun Schmitke, said the expanded list of occupations will attract and retain apprentices and encourage employers to take on apprentices to fill skill shortages around the country.

“The Federal Government has heard the cries of builders in recent months who have been grappling with labour shortages,” he said.

“Master Builders has long called for targeted efforts to incentivise the retention and completion rates of apprentices and today’s announcement is an active step in tackling low completion rates.

“Wage subsidies can be the difference between choosing to hire or not hire an apprentice.

“Apprentice payments incentivise them to stay in their training and assist with cost-of-living pressures. Eligible building and construction apprentices will receive $5000 in four payments during their apprenticeships.”

The updated list also identifies the apprenticeship pathways eligible for the Government’s New Energy Apprentice Support Payment, of which 28 occupations are relevant to the building and construction industry. The payment provides eligible apprentices with five $2000 payments over the course of their apprenticeship.

“The industry will need around 470,000 new workers to offset an ageing population and meet demand for housing over the next few years and replace workers that leave the industry,” Schmitke said.

“This is a meaningful step and we hope to see more efforts around improving recruitment to trades.”

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