Victoria is facing a critical skills crisis, with apprenticeship training contracts dropping from over 58,000 to less than 25,000 in just two years. The Apprenticeship Employment Network (AEN) is calling for urgent government action to fund what works, fix broken pathways, and future-proof the state’s workforce.
The new Pre-Budget and Policy Paper released by AEN outlines five key recommendations to strengthen the pipeline of skilled workers and help Victorian businesses tackle labour shortages across construction, manufacturing, health care, social housing, and emerging industries.
AEN’s Five Key Recommendations:
- Reduce administrative burden on Victorian Group Training Organisations (GTOs)
Cut red tape and streamline the regulatory framework to save the not-for-profit sector millions of dollars and allow GTOs to focus on quality training and mentoring. - Increase funding to GTOs to $12 million per year
Victorian GTOs currently receive $3.2 million in annual funding — unchanged for over 20 years. Increased investment will ensure apprentices and employers receive the support needed to boost completions, particularly for disadvantaged and regional cohorts. - Improve school-to-work transitions
Reform and refocus the HeadStart program by integrating GTOs, TAFEs and high-performing RTOs to deliver 10,000 school-based apprenticeships and 10,000 multi-industry pre-apprenticeships over four years. - Link Fee-Free TAFE to real apprenticeship and traineeship outcomes
Aligning Fee-Free TAFE directly with apprenticeship pathways will improve completion rates and ensure funding is tied to genuine employment outcomes. - Encourage the Commonwealth Government to reinstate wage subsidies
Introduce wage support for all new apprentices and trainees to reduce costs for employers and encourage greater participation in skills-based training.
Quote attributable to Gary Workman, Executive Director, Apprenticeship Employment Network:
“Victoria’s skills system is under pressure, and it’s time to invest in what delivers results.
Group Training Organisations have proven success in supporting youth, regional and small employers, as well as disadvantaged jobseekers into long-term careers.
By reducing red tape, properly funding GTOs, and linking Fee-Free TAFE directly to real jobs via apprenticeships, we can create a stronger, more inclusive workforce that meets Victoria’s economic priorities — from net zero to social housing, healthcare, and advanced manufacturing.”
About the Apprenticeship Employment Network (AEN)
The Apprenticeship Employment Network (AEN) is Victoria’s peak industry body representing not-for-profit Group Training Organisations. Collectively, AEN members employ over 5,000 apprentices and trainees each year across more than 50 industries, partnering with 10,000 host employers. Together, the network contributes over $420 million annually to the Victorian economy, supporting youth employment, diversity and regional development.