Fund our apprentices: Aged care calls out incentive imbalance

Prime Minister Anthony Albanese’s decision to award $10,000 cash to apprentices working in residential construction has sparked a chorus of calls for similar initiatives to be offered to industries like aged care and disability. 

The Health Services Union (HSU) said the government should provide targeted funding for 10,000 new aged care and disability support apprentices.

Meanwhile, the Independent Tertiary Education Council Australia (ITECA) said the decision to only reward construction apprentices ultimately misses the bigger picture.

Under the new incentive, ‘the next generation of tradies’ will receive five $2,000 instalments throughout their apprenticeship. The government expects this to cost $626.9 million with just over 60,000 apprentices to benefit. 

Yet ITECA wants additional apprentice retention support for industries with an urgent skills gap, such as health and aged care, tourism and hospitality and vehicle repair.

“Supporting apprentices in the construction and energy sectors is important, but this measure fails to address the needs of the small businesses in other parts of the economy.  It also lets down employers looking to take on an apprentice,” ITECA Chief Executive Officer Troy Williams said. 

“Without meaningful support for employers, the pipeline of skilled workers will continue to remain under threat.

“While it’s positive to see measures that aim to support apprentice recruitment and retention, we cannot ignore the glaring gaps in the Australian Government’s approach and the industries left behind.”

According to the Aged Care Workforce data report 2024, just under half of the workforce (42.8%) has worked in the aged care industry for over ten years. This highlights the generational shift as younger workers fill the gaps of those who have retired or left the sector altogether. 

However, organisations can be left scrambling to deliver effective services without dedicated support to address the skills gap that forms when experienced workers leave. 

ITECA said Measures to support small businesses that employ apprentices and greater collaboration with independent registered training organisations are essential to ensuring Australia’s workforce is equipped to meet future demand.

“Ensuring apprentices start and complete their training is vital, but it’s only one piece of the puzzle,” Mr Williams said. 

“If we want a truly robust and responsive apprenticeship system, we need policies that support all industries and the employers and training providers that make these opportunities possible.”

As for the HSU, it welcomed the release of the independent Strategic Review of the Australian Apprenticeship Incentive System.

The Strategic Review investigated the support available to help more people start and complete apprenticeships and traineeships.

It recommends the government bring unions, employers, relevant agencies and ministers together to break down barriers for apprenticeship pathways in the aged care and disability sectors.

Additionally, it said the current incentive system is not aligned with Australia’s economic priorities and risks failing to meet critical skills needs. Incentives could be better directed to supporting small and medium employers, while resources could be used to create more high-quality opportunities. 

Data in the Strategic Review shows that aged care has a relatively low take up of apprenticeships and traineeships. This may be due to aged care and disability sectors often using pathways requiring vocational training through an RTO rather than apprenticeship pathways. It recommends devising more fit-for-purpose apprenticeship pathways. 

HSU National Secretary Lloyd Williams said the government’s latest funding announcement for construction shows it is serious about addressing skills shortages but it needs to include aged care.

“The independent review of apprenticeships shows despite massive workforce shortages, a lack of funding is preventing disability and aged care apprenticeships from taking off,” he said. 

“That’s exactly why we need similar targeted incentives for aged care and disability support.”

“Without targeted funding, Australia risks inflaming the workforce crisis in aged care and disability which would have dire consequences in those critical sectors. With an ageing population and growing NDIS, Australians’ access to quality care and support is at risk.”

Structural issues in aged care must be addressed if targeted funding is provided. The Strategic Review highlighted how it is impractical for aged care providers to offer on-the-job training to apprentices as there is no allowance for shadowing and supervision. 

“Employers are discouraged from taking on apprentices as they are not funded to fulfil their training requirements. Additionally, the certificates III and IV in these sectors require students to undertake at least 120 work placement hours, which are commonly unpaid. This provides employers with access to students in training without needing to commit to a full traineeship or impact their profit margins,” the Strategic Review outlined. 

By recommending a meeting between unions, employers and industry stakeholders, there is hope that targeted strategies can be identified and implemented so structural barriers are removed.