Fact sheet: Delivering Skills for Today and Tomorrow

The Government is investing $525 million to upgrade and modernise the VET sector, in response to the Expert review of Australia's vocational education and training system. It is part of our plan for a stronger economy and securing a better Australia.

Additional Identified Skills Shortage Payment

The Government is creating additional apprenticeship incentive payments to boost existing incentives for areas of identified skills needs to support up to 80,000 new apprentices over five years.

  • This payment will provide:
    • Employers a total of $4,000 ($2,000 after 12 months and $2,000 at completion), in addition to the existing standard employer incentives of $1,500 at commencement and $2,500 at completion of an apprenticeship
    • Apprentices a total of $2,000 ($1,000 after 12 months and $1,000 at completion).
  • Eligible occupations will include:
    • Carpenters and joiners
    • Plumbers
    • Hairdressers
    • Air-conditioning and refrigeration mechanics
    • Bricklayers and stonemasons
    • Plasterers
    • Bakers and pastry cooks
    • Vehicle painters
    • Wall and floor tilers
    • Arborists.
  • Eligible occupations will be reviewed annually to ensure current and expected skills shortages are captured.

Foundational skills

The Government is launching a new foundational language, literacy, numeracy and digital skills program, and will invest $62.4 million to provide individuals with the skills to move into further education or employment.

Eligible participants will:

  • Be aged 15 to 44 years and Australian citizens, or permanent residents
  • Have left secondary school education
  • Be employed, or recently unemployed and not registered for an employment services program.

Participants can access the program through either employer or self-referral.

This will include four pilots providing tailored services in remote communities.

Training Hubs

The Government is establishing 10 Training Hubs across Australia. Training Hubs will support industry pathways in areas of local skills shortages that complement the completion of secondary education.

This four year, $50.6 million, project will target youth unemployment in regional areas.

It will help create better connections between industry and schools, which will improve outcomes for up to 3,000 school students as well as their potential employers.

National Careers Institute and Ambassador

The National Careers Institute will transform careers advice for individuals across their education, training and employment. The Institute will be headed by a National Careers Ambassador to promote consistent national guidance on quality careers advice.

The Institute will map international experience to the Australian education and job context, to streamline information and develop best practice careers guidance.

The Institute will also be responsible for development of a new VET Information Strategy aimed at growing local community and employer interest in Vocational Education and Training (VET).

An integrated VET sector

In this package, the Government is also providing:

  • $44.0 million to streamline incentives for employers of apprentices and trainees, and modernise the skills needs list
  • $34.2 million to the six signatory states to the Skilling Australians Fund National Partnership Agreement to support new apprenticeships
  • $10.0 million to develop skills in areas of need by building innovative partnerships between schools, employers and the VET sector through a new competitive grants program
  • $8.5 million to address youth unemployment by providing 400 scholarships in regions throughout Australia as well as supporting the National Rugby League's VET Apprenticeship Awareness program.

Skills Organisations

The Government is piloting national Skills Organisations in the areas of digital technologies and human services care.

These will trial new, industry-led methods of qualification development and assessment, and develop standards for industry to accredit Registered Training Organisations.

National Skills Commission

The Government is establishing a National Skills Commission to oversee the Commonwealth's $2.8 billion annual investment in VET. The Commission will drive long‑term reform in the VET sector by:

  • Working with States and Territories to develop a nationally consistent approach to the funding of VET qualifications (on a qualification-by-qualification basis)
  • Driving research and analysis of future skills needs across industry to ensure the VET system addresses national labour market priorities including those arising from developing technologies such as automation and artificial intelligence.