Big Budget to boost employment

12 May 2021

The Federal 2021 Budget has employment top of the agenda – a move welcomed by industry.

Central to the budget is a workforce plan, which will see the government commit $2.7 billion over four years from 2020/21 to expand the Boosting Apprenticeship Commencements wage subsidy. 

The measure will uncap the number of eligible places and increase the duration of the 50 percent wage subsidy to 12 months from the date an apprentice or trainee commences with their employer, further supporting businesses and Group Training Organisations.

The announcement by Australian Treasurer, Josh Frydenberg of the boost in apprenticeship and training support will go some way to support the country’s economic recovery, and make it easier for employers to access and commit to taking on an apprentice.

“The government has set its sights on getting unemployment below five percent. It’s ambitious, but fresh investment in apprenticeships and training is key. People need jobs, industries need skills. This budget goes beyond acknowledging the problem – it's about putting our money where it’s needed most,” said VACC/TACC CEO, Geoff Gwilym.

The latest Chamber research reveals that the automotive sector is suffering from a skills shortage of more than 31,000 – a snapshot of the chronic issue impacting numerous essential service industries. 

Another employment-building initiative outlined in the budget centres on skills reform. The government has committed $285 million over five years towards skills reform to ensure state governments, employers and students invest in training that delivers the best outcomes to strengthen Australia’s skills base. 

“Yes, we have made it through a year of unprecedented challenges, but Australia’s skills shortage goes way back. We need to maintain a pipeline of workers – and can no longer rely on skilled people coming from overseas. We need to look closer to home and create opportunities,” said Mr Gwilym.