The centerpiece of Labor’s 2024 budget was a ‘Future Made in Australia’ promise, with free TAFE places to get the housing sector back on its feet by addressing key skills shortages.
But industry experts have labeled the initiative a flop as the courses are wrongly targeted and trainees skip their full studies to become paid apprentices to earn a living.
Gary Workman, CEO of Global Apprenticeship Network Australia, told Daily Mail Australia that the free TAFE places on offer are not always practical for young adults.
“There’s a little bit of frustration for us that there’s no consistency,” he said.
‘There doesn’t seem to be much of a link between skills shortages and free TAFE in many cases.’
The centerpiece of Labor’s 2024 budget was a promise for a ‘Future Made in Australia’ – complete with free TAFE places to get the housing sector back on its feet and tackle skills shortages across the sector
The government boasted in the budget of 20,000 extra places on free TAFE training programs to increase the number of tradies in construction and housing
Mr Workman admitted: ‘There is a skills shortage at the moment’.
But he questioned why the government ‘seems to be directing a large proportion of our free TAFE towards campus-based qualifications’ [rather than] linking it to a job and giving young people the opportunity to find work’.
The government boasted in the budget of 20,000 extra places on free TAFE training programs to increase the number of tradies in construction and housing.
The $90 million national package is being touted as a budget boost that will help Labor meet its pledge to build an additional 1.2 million homes to keep pace with Australia’s growing population of nearly 27 million .
A further 15,000 free TAFE and VET places will also be made available over two years from January 1.
But the problem facing the industry is that many of these courses are specifically designed for full-time enrollments and do not go hand in hand with on-the-job training.
It would be more beneficial, Mr Workman said, if the government worked with aspiring tradies and business owners, offering free apprenticeships while reducing the financial burden on businesses to take on apprentices.
Mr Workman said targeted migration programmes, similar to student visas for university studies, could help bridge the skills gap in key sectors
Mr Workman acknowledged that some employers can be “a bit lazy” when it comes to apprenticeship opportunities for young people, but called on the Government to take additional action to reduce the skills shortage.
This includes linking free opportunities with internships and apprenticeships, and encouraging businesses to hire young people and work towards a qualification.
In turn, students would receive a stronger combination of theory lessons and practical experience, helping more professionals become proficient in the tools to improve construction outcomes.
“They don’t always want to invest the four years it takes to give someone the skills they want,” he said.
Currently in NSW, all 20 free construction industry courses are offered on a full-time course load.
The government, together with states and territories, has also committed $26.4 million to create 5,000 new positions in pre-apprenticeship programs
Mr Workman said targeted migration programmes, similar to student visas for university studies, could help bridge the skills gap in key sectors.
“We allow international students to come to Australia to study at university and the vast majority continue to enter the workforce,” he said.
‘But we don’t have the same trajectory in terms of apprenticeships and internships – and that’s something we need to look at in this skills shortage.’
Mr Workman acknowledged that some employers can be “a bit lazy” when it comes to internship opportunities
Treasurer Jim Chalmers’ Budget has touched on this suggestion with a $1.8 million commitment to streamline skills assessment for migrants from countries with similar qualifications to Australia.
This will benefit up to 1,900 migrants looking to work in Australia’s construction industry.
Troy Williams, chief executive of the Independent Tertiary Education Council Australia (ITECA), said while the budget commitments “provide opportunities for workforce development, they fall short in fully supporting students with independent skills training providers”.
“The government has missed an opportunity to increase its impact on skills training by not fully supporting independent providers,” he said.
The Government, together with states and territories, has also committed $26.4 million to create 5,000 new positions in pre-apprenticeship programs.
These initiatives build on initiatives that already exist. Around 355,000 students were supported through the free TAFE program until December 31, 2023.
Minister for Skills and Training Brendan O’Connor described the latest round of funding as a ‘great opportunity for people to gain access to a profession’.
And Housing Minister Julie Collins said the initiatives are the “best way to tackle Australia’s housing problems”.
‘More homes means more affordable options for everyone – whether they’re buying, renting or need a safe place to stay at night.
“But to build more houses we need more tradies, and that’s what this announcement will deliver. It’s just one way we’re working together across government to build the homes Australia needs.”