Apprenticeships System Is Due for Reform

Australia’s apprenticeship system is facing renewed scrutiny amid persistently low completion rates and growing demand for skilled tradespeople. With more than half of apprentices failing to finish their training, experts and policymakers agree: the system needs reform.

In an era of skills shortages—particularly in trades, construction, and energy—streamlining the apprenticeship pathway is critical to building a future-ready workforce.

What’s the Problem with the Current System?

Despite strong demand for qualified tradespeople, apprenticeship completion rates hover at around 55%, according to data from the National Centre for Vocational Education Research (NCVER). This means nearly half of all apprenticeships started in Australia never reach the finish line.

Common reasons for non-completion include:

• Low apprentice wages
• Lack of mentorship or support from employers
• Rigid, time-based training models
• Limited flexibility to recognise prior learning or fast-track training

Senator Chris Evans, former Minister for Skills and Workplace Relations, called the situation “unsustainable” and called for reforms to reduce complexity and boost retention.

Proposed Solutions: What Reform Might Look Like

Following a 12-month government inquiry, a taskforce made several recommendations aimed at modernising the apprenticeship model and improving outcomes.

1. Competency-Based Progression

Rather than a fixed time frame (typically 3–4 years), apprentices could complete their training as soon as they can demonstrate mastery of required skills. This would allow high-performing individuals to enter the workforce faster and save on training costs.

2. Better Pay and Incentives

The taskforce suggested aligning apprentice wages more closely with the “going rate of pay” in their industry. This could provide a stronger incentive to complete training and stay in the trade long term.

There’s also been a push to review employer incentive payments to ensure they are supporting genuine skills development rather than low-value traineeships.

3. Recognition of Prior Learning

With 42% of new apprentices aged 25 or over, prior work experience should be factored into training pathways. Accelerated or customised apprenticeships for career changers and mature-age learners can help close skills gaps faster and more efficiently.

Industry Support for Reform

The Australian Industry Group (Ai Group) has long advocated for a more flexible, responsive system. Former CEO Heather Ridout welcomed reforms like competency-based progression, noting that employers are eager to support apprentices but need a system that works in real time.

“We’ve advocated for a system that recognises existing skills and supports completion. The current complexity is holding back progress,” Ridout stated.

Controversy Over Traineeship Subsidy Cuts

In a separate cost-saving measure, the federal government proposed slashing subsidies for some retail and hospitality traineeships. These subsidies, once paid to large employers like McDonald’s, Woolworths, and Coles, were found to deliver limited long-term skills outcomes.

While the move was intended to redirect funds toward high-need sectors, some critics warned it could result in thousands of lost traineeship positions in entry-level retail and customer service roles. The decision underscores the need for a more targeted approach to funding vocational education.

Apprenticeship Opportunities in 2025

Despite the challenges, apprenticeships remain a powerful gateway into high-demand careers, particularly in:

• Building and construction
• Electrical and engineering trades
• Automotive and mechanical repair
• Plumbing and gas fitting
• Aged care and community services

Whether you’re a school leaver or a mature-age learner seeking a career shift, now is a strong time to consider a vocational course or apprenticeship pathway.

Next Steps: What You Can Do

For aspiring tradies or employers, staying up to date with current apprenticeship frameworks is essential. You can explore:

• Australian Apprenticeships – for information on training, incentives and how to get started
• Nationally recognised VET and trade courses
• MyFuture.gov.au – to explore career pathways

Apprenticeships are evolving. With the right reforms, they can once again become a robust, accessible route to lifelong skilled employment—and a win for both workers and employers.