Today’s $1.5 billion package to expand apprenticeship subsidies will provide crucial aid to Australian businesses facing the cost of training and retaining the skilled workers our economy needs for the future. Expanding coverage to include medium-sized businesses, which are often family-owned, supports a wider range of businesses and will be important to many WA manufacturers.
Though this aspect of today’s announcement is strongly welcome, steps to centralise pricing and decision-making on vocational education and training would make it more difficult to meet WA’s unique industry needs. Forecasting the skills needs of the economy at a national level would risk being skewed by larger eastern states, requiring WA to pay more to make up the difference in ensuring our training meets local needs. Western Australia has a proportionately higher need for trade and technical roles and nearly double the demand for machinery operators compared to any other state. WA accounts for nearly half of the total mining and resources related VET commencements.
To address the unique labour market needs of the States, funding for training activities should be determined at a State level to better ensure the skill requirements of businesses within individual jurisdictions are met. This approach is outlined in CCIWA’s initial submission to the Productivity Commission’s review into State and Commonwealth VET system governance and funding arrangements.
Aaron Morey
CCIWA Chief Economist
