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VET & TAFE
Some unscrupulous employers may exploit the scheme by pushing existing workers into quick , poor quality training .
No quick fix
Concerns new wage subsidy scheme could be rorted .
By Wade Zaglas
Some of Australia ’ s vocational
education and training providers are worried that the government ’ s new scheme to subsidise 100,000 trainees and apprentices is at risk of being rorted .
The concerns relate to employers and training organisations potentially using the scheme to hire trainees in order to subsidise existing employees .
Under the Boosting Apprenticeships Commencements scheme , which was announced in the federal budget , the government will subsidise new trainee and apprentice wages by 50 per cent in a policy deal worth more than $ 1 billion .
The new wage subsidy scheme will provide up to 100,000 places until September 30 next year , and employers will receive up to $ 7000 a quarter or $ 28,000 a year .
The National Apprentice Employment Network ( NEAN ) said it was supportive of the scheme , saying “ the measure will provide a much-needed lift to apprentice and trainee sign-ups at a time when new enrolments have stalled ”.
“ Under the program , businesses that take on a new Australian apprentice or trainee will be eligible for a 50 per cent wage subsidy , regardless of geographic location , occupation , industry or business size ,” it said .
“ There has been a sharp fall-off in apprentices and trainees in work during the COVID-19 crisis and there has also been a slowing of commencements as businesses have put their plans on hold .
“ It is vitally important that we ensure openings for a new cohort of school leavers as well as those wishing to start a career through an apprenticeship or traineeship .
“ It is also critical that we have a pipeline of skilled people coming through the system so that Australia isn ’ t faced with a skills crisis when the economic recovery resumes .”
However , chief executive officer of the NEAN Dianne Dayhew said that , while the employer network was broadly supportive of the scheme , it could also be exploited by unconscionable employers .
“ We are concerned that there could be some unscrupulous employers who may exploit the scheme by pushing existing workers into quick , poor quality training to attract the subsidy ,” Dayhew told the Sydney Morning Herald .
“ This means the 100,000 available places in the program could be quickly swamped by existing workers who are not being given genuine apprenticeship or traineeship opportunities .”
Dayhew also said that such rorts will result in young job seekers missing out on traineeships and apprenticeships .
TAFE Directors Australia CEO Craig Robertson expected the 100,000 traineeships and apprenticeships to be taken up quickly and agreed that the scheme could be rorted to upskill current workers and help employers pocket wage subsidies .
“ The question is whether the scheme will grow unchecked ,” he told SMH .
“ The only proviso on this universal scheme is that the training contract is formally approved by the state training authority .”
However , a spokesman for the federal minister for employment and skills , Michaelia Cash , said “ ongoing compliance ” would ensure only new apprentices and trainees received the wage subsidy .
“ The subsidy is granted once employers have signed up a new trainee or apprentice that will undertake accredited training approved by the relevant state or territory authority ,” he said .
“ Anyone found to be trying to game the system will not be eligible for any support .
“ This program will be supported by ongoing compliance activity to ensure the support is going to genuinely new apprentices .”
But Labor ’ s education spokesperson Tanya Plibersek was not as confident that the scheme would not be rorted , tweeting that “ you can ’ t trust anything Scott Morrison says about apprentices ”.
An education policy fellow at Victoria University ’ s Mitchell Institute , Peter Hurley , said higher skilled apprenticeships would be less likely to be rorted than lower skill traineeships . Hurley also added that the new wage subsidy scheme could have unintended consequences .
“ Problems with incentives have definitely occurred in the past , particularly with existing workers and in qualifications in retail and hospitality ,” he said .
“ Monitoring the uptake of the incentives and possibly introducing caps in certain areas if required , such as traineeships in retail and hospitality , might help minimise the risk of the program being abused .” ■
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