Boosted assistance addresses automotive skills shortages

27 January 2023

The Albanese Government has announced additional support for automotive business owners and those seeking to enter the trade in a bid to slow the increasing labour gaps in the industry.

The Federal Government has expanded the Australian Apprenticeship Priority List from 77 to 111 – as part of the Australian Apprenticeship Incentive Scheme – and it now includes all major automotive categories, something for which VACC has successfully lobbied.

The Priority List now covers:

• Auto electricians
• Diesel mechanics – heavy vehicle/farm machinery
• Motor mechanics (including motorcycle)
• Panel beaters
• Vehicle painters
• Small engine mechanics
• Vehicle body builders
• Vehicle trimmers
• Welders
• Fitters – diesel/mobile plant
• Metal machinists – engine reconditioner
• Metal fabricators.

Apprentices will also now receive direct payments of up to $5,000 annually and a wage subsidy of up to $15,000 is available for their employers.

Minister for Skills and Training, the Hon. Brendan O’Connor, said skills shortages posed one of Australia’s greatest economic challenges.

“Wherever you look, there are skills gaps, with the latest analysis showing 47 per cent of trade and technician occupations are in shortage, up from 42 per cent in 2021,” Minister O’Connor said.

“Providing targeted support to increase the uptake and completion of apprenticeships in critical sectors is essential to plugging the skills gaps we face.”

VACC CEO Geoff Gwilym said this was a great policy win, something for which the chamber had worked tirelessly.

“VACC has made governments aware of the skills and labour crisis in the automotive industry for years, so we’re pleased the Albanese Government has listened and made important changes we hope will ease critical labour shortages,” said Mr Gwilym.

“While apprenticeship completion rates have declined over the past decade, VACC is proud its Automotive Apprenticeships departments in Victoria and Tasmania have completion rates of 80 per cent.

“Business owners, however, find attracting staff, particularly apprentices, increasingly challenging. Boosting the number of occupations on the Australian Apprenticeship Priority List to include all major automotive roles is an excellent outcome, as is the incentives offered to business owners and apprentices. We hope this helps turn things around for the automotive industry,” said Mr Gwilym.

ENDS