NECA is deeply concerned about the recent reduction in the apprentice incentive payment from $15,000 over three years to $5,000 for just the first year. We recognise the substantial impact this change will have on our industry and the businesses that rely on apprentices for their growth and success. We surveyed our members and these are the recent findings;
- Industry Awareness and Reaction:
- A significant number of businesses were initially unaware of the changes. Among those who were informed, 100% reported a negative reaction, with many viewing the reduction as a substantial financial burden.
- Impact on Hiring and Training:
- 87% of businesses anticipate a decrease in the number of apprentices hired due to the reduction. Concerns about the potential decline in the quality of apprenticeship training and increased turnover rates were raised by 90% of respondents.
- Business Impact:
- 80% of businesses foresee a significant negative impact on their ability to hire and train apprentices. Many small businesses expressed concerns about the increased financial strain, with 75% indicating that they might delay or halt hiring new apprentices.
Our goal is to secure fair and effective incentives that will help sustain apprenticeship programs and support the industry’s growth.
Our Members Suggested Alternatives
To address the challenges posed by the reduced incentive payments, several alternatives have been proposed by the surveyors, including:
- Restoring or increasing the incentive payments
- Providing direct funding for training programs
- Reducing course fees
- Waiving payroll tax for apprentices
We will keep you updated on our advocacy efforts and any developments related to this issue. Your continued feedback and support are crucial as we work to address these challenges and ensure the future viability of apprenticeship programs in our industry.