News, Regulations

A FEDERAL government residential construction apprenticeship bonus scheme has been questioned by Victoria’s peak automotive body as favouring one industry over others and leading to artificially distorting career choices in critical trade sectors.

The Victorian Automotive Chamber of Commerce (VACC) said the government’s newly announced $10,000 bonus scheme would pit one industry against another.

VACC CEO Geoff Gwilym said while his chamber supported apprenticeship incentives as being vital for Australia’s skills future “creating a system that favours one industry over another is short-sighted.”

“Getting your car repaired is just as essential as getting a new sink installed,” – Geoff Gwilym

This selective bonus scheme risks diverting aspiring apprentices away from the automotive industry based solely on financial incentives, rather than genuine career interest or industry demand.”

VACC maintains that apprenticeship incentives should be equitably distributed across all trades to ensure sustainable workforce development across Australia’s critical trade sectors.

“This position distorts the flow into each industry and effectively robs Peter to pay Paul,” Mr Gwilym said.

“The government needs to implement a balanced approach that supports all trade industries equally, rather than creating artificial market distortions that could harm some sectors whilst supporting others.”

VACC said that the automotive industry was undergoing rapid technological transformation, with increasing demand for skilled technicians to service and repair electric and hybrid vehicles. 

It said that the new federal government policy risks compromising the industry’s ability to meet these emerging challenges.

“At a time when we need to be attracting more apprentices to support Australia’s transition to new automotive technologies, this policy actively works against that goal,” Mr Gwilym said.

“We need a balanced approach that recognises the essential role of all trades in maintaining Australia’s economic infrastructure.”

Geoff Gwilym

VACC is now calling on the federal government to review its approach and consider implementing equitable incentives across all trade sectors to ensure sustainable skills development across all essential industries.

The policy announced by the federal government will allow eligible apprentices in construction occupations to receive an additional $5000 compared to the Australian Apprenticeship Training Support Payment.

Effective from July 1, 2025, the government will provide a $10,000 incentive payment – doubling the support payment amount – to encourage Australians to train for jobs in this critical sector.

The government said that the new program will establish a housing construction apprenticeship stream in response to the Strategic Review of the Australian Apprenticeship Incentive System.

The review found cost-of-living pressures faced by apprentices are steering people away from taking up apprenticeships.

Apprentices will receive $2000 at six, 12, 24, 36 months, and at the completion of their apprenticeship.

The government said that encouraging more people into apprenticeships would ensure Australia has the workforce to deliver its ‘Homes for Australia Plan’ that aims to deliver 1.2 million homes over the next five years.

By Neil Dowling

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