Need To Change

Apprentice Incentives Need To Change

By Jo Wilson

Earlier this year, Editor In Chief, Clayton Coughlan attended a small dinner of 10 to discuss the current crisis facing the painting industry. The guest list included MP Luke Howarth, Australian Treasurer Josh Frydenberg and Head of QLD Hoteliers Association Bernie Hogan, amongst others.

“I wanted to talk to the treasurer about getting funding to help drive apprentices toward the painting industry and keep them there,” Clayton said.

The intention of the evening was to present a solution to an increasing problem where around their third or fourth year, after they have learned a lot, many apprentices are getting poached by other businesses and not completing their trade.

“There are incentives set up where trade businesses get cash payments when they sign up a new apprentice, then another one about six months after the apprentice starts work and upon completion, but there’s not much incentive for the actual apprentices,” he said.

He explained to the group how once young apprentices get that little bit older, their circumstances change. They are trying to establish themselves in life and the need for better pay becomes more important than finishing their apprenticeship. Other companies offer to pay them more, and the industry becomes inundated with qualified brush hands and very few qualified tradesmen. This was something backed up by Bernie Hogan who stated that the Hospitality industry sufferers the exact same thing with apprentice Chefs.

“The incentives are fantastic for the employer and if they can keep the apprentice through the whole trade, they get a cash incentive at the end.”

“Unfortunately, apprentices are getting lost and the industry is dramatically suffering with this as there are now so many unqualified workers and not enough qualified trades people.”

It was obvious to Clayton that there is very little to keep the apprentice wanting to stay on in their apprenticeship, so he made the proposal to consider an option where the apprentice could get a tax break in their third and fourth years to give them an incentive to stay on, or receive a cash incentive to stay on to finish.

Treasurer Josh Frydenberg was very open to this idea and was interested in discussing it further, so stay tuned for an update on this discussion. Clayton has also been speaking with Senator Hon. Michaelia Cash, Federal Minister for Employment, Skills, Small and Family Business, however Covid-19 put the brakes on that discussion. They have all agreed to resume the conversation once some form of normality is restored, so rest assured he will continue the discussion to get a resolution around apprentices.

“Unfortunately, apprentices are getting lost and the industry is dramatically suffering with this.”