Building a stronger apprenticeship system: AMCA pushes for smarter incentive design
20 October 2025
AMCA has called for a more targeted and transparent approach to apprenticeship incentives as part of the review of the Australian Apprenticeship Priority List.
AMCA has called for a more targeted and transparent approach to apprenticeship incentives, submitting recommendations to the Department of Employment and Workplace Relations as part of the review of the Australian Apprenticeship Priority List.
Our submission emphasises that government incentives must be directed toward high-skill, high-risk, and compliance-driven trades that deliver clear public and economic benefits — particularly air conditioning and refrigeration and mechanical plumbing, which are critical to safety, energy efficiency, decarbonisation, health, and infrastructure reliability.
We have also pushed for greater flexibility in the model to ensure that emerging apprenticeship trades such as duct installation can be recognised and supported, helping to future-proof Australia’s skilled workforce and maintain capability across the built environment.
A Targeted, Transparent, and Predictable System
AMCA supports reforms that make the Priority List more evidence-based and stable, reducing volatility for employers and apprentices alike. The proposed approach calls for biennial reviews, transparent inclusion criteria, and eligibility rules that remain consistent for the duration of an apprenticeship once it has commenced.
By aligning the methodology with national frameworks such as the National Skills Agreement and Employment White Paper, AMCA believes the list can better reflect Australia’s economic and social priorities — including Closing the Gap, gender participation, and the clean-energy transition.
Front-Loaded Incentives to Support Early Training Years
A central recommendation from AMCA is to restructure employer incentives so that funding is weighted toward the early years of training, when apprentices are least productive and employer supervision costs are highest.
Under the proposed model, higher incentive payments would be provided in the first and second years — when businesses carry the greatest training and compliance burden — with payments tapering as apprentices progress. This approach directly rewards employers who make genuine early-stage investments and encourages more businesses to take on new apprentices.
Safeguarding Integrity and Reducing Poaching
To maintain fairness and integrity across the apprenticeship system, AMCA has also proposed a rule that incentives should only be available when an apprentice commences and completes their training with the same employer.
This measure would close long-standing loopholes that have allowed “late-stage recruitment” or poaching of apprentices by other employers after the initial training investment has already been made. The change aims to reward employers who carry the full cost and responsibility of training — and to build a culture of long-term workforce development.
Flexibility for Emerging and Evolving Pathways
The submission also highlights the need for the Priority List to adapt to emerging trades and evolving training models. As technology and licensing frameworks change, the list must be flexible enough to capture new or transitioning pathways — such as those introduced through building decarbonisation, refrigerant transition, or digital systems integration — while remaining anchored in occupations where apprenticeship remains the primary pathway.
Recognising Jurisdictional and Regional Differences
AMCA argues that a national list must still accommodate state and regional differences, particularly where licensing frameworks and workforce shortages vary. This includes allowing jurisdiction-specific overlays that reflect local training needs and workforce priorities — such as regional healthcare, energy infrastructure, and essential service delivery.
Toward a More Accountable, High-Impact Incentive Framework
By combining a narrower, more focused Priority List with a smarter incentive structure, AMCA’s approach seeks to build a system that rewards commitment, reduces misuse, and strengthens the skilled trades pipeline across Australia.
A well-designed, front-loaded incentive framework — coupled with safeguards against poaching — will help employers invest confidently in training, improve completion rates, and ensure that funding delivers measurable public and economic value.
Download AMCA's full submission
For more information or to share feedback on AMCA’s apprenticeship policy and workforce development initiatives, please contact [email protected].
