Apprenticeship subsidy at risk of ending by March

The Boosting Apprenticeships Commencements wage subsidy is a federal government initiative that commenced on October 5, 2020 and is due to finish by the March 31, 2022, with no announcement at this stage to extend the program.

On Tuesday's National Press Club address, Prime Minister Scott Morrison described the subsidy as "transformational" yet made no indication of it continuing past March.

This has left small business owner of AuroraFM Plumbing, Luis Rozas, and his apprentice David Fernandez, in limbo as the wage subsidy has been "a crucial part of basically keeping the business afloat" during the pandemic.

"Even though plumbing is classified as an essential service, our business had dropped quite significantly during lockdowns, so without this support I would have had to let go of some of my apprentices," Mr Rozas said.

"Apprenticeships are a crucial part of keeping the guys on the books and to have them being able to turn up to work and get their practice training. The TAFE component is only a small part while 70 per cent of training is done on the job.

"The sense of security plays a crucial part in their mental health and being able to get out and keep going with their training."

Soon to become a full-time plumber, Mr Fernandez has spent the past three years as an apprentice and says it has been extremely helpful for his career.

"An apprenticeship matures you, as soon as I left school I started an apprenticeship. It really did help with the rent and with the bills to pay, so it's pretty good," Mr Fernandez said.

"I want to become a tradesman soon and be the best tradesman I can be, so the help from the government is amazing for this industry."

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The National Centre for Vocational Education Research published its June 2021 quarter data last Thursday, showing apprentice and trainee commencements grew nationally by 114 per cent compared to the same quarter in 2020.

The Australian Chamber of Commerce and Industry chief executive Andrew McKellar has called for the extension of this wage subsidy to ensure continuity in the success of apprentices retaining jobs and becoming skilled workers.

"The federal government's boosting apprenticeships commencements program has been instrumental in reversing the long-term decline in apprenticeship numbers. We hope to see these strong results continue but note that the BAC is due to expire in March with a replacement scheme yet to be announced," Mr McKellar said.

"It is critical that both the federal government and opposition commit to locking in support through the continuation of the BAC program."

Board member of the Master Plumbers Association and owner of Watertight Canberra Tom Martin has found the subsidy to be crucial for all age groups to develop their skills.

"An apprentice always costs you money, particularly for the first two to three years, the wage subsidy just closed the gap," Mr Martin said.

"As a result for our own company, we have our own internal limit to one apprentice per one tradesman and we've expanded our apprentices to meet that number thanks to the subsidy.

"To put on a mature-age apprentice, you're basically paying minimum wage plus industry allowance, now when you've got that apprentice driving around in the car next to you it's a very very expensive exercise, you're basically paying two full adult wages.

"For us knowing that wage subsidy was there, we were willing to invest in putting on two or three mature age apprentices and to be honest they probably wouldn't have got a job if it wasn't for that subsidy."

The learning process of apprenticeships plays a big role in resolving the skill shortages in the trade industries, which Mr Martin says is why government support needs to continue.

"One of the most proud moments I get as an employer is seeing an apprentice get signed off as a tradesman and it's always quite funny watching them go through their apprenticeship, all of a sudden at the end of their first year something just clicks," he said.

"They gain that little bit of confidence, they start understanding what they're doing and then year two and three you start trusting them with more jobs."

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