Australia’s vocational education and training (VET) system is designed to ensure skills are developed in wide range of occupations, through practical school-based and work-based learning. Apprenticeships and traineeships are key components of the VET system and are an employment arrangement that combines paid work with a structured program of on-the-job and off-the-job training.

The Australian Apprenticeships Incentive System (the Incentives System) commenced on 1 July 2022, and replaced the Australian Apprenticeships Incentive Program which had been in place since 1998. The Incentives Systems aims to contribute to the development of a highly skilled and relevant Australian workforce that supports economic sustainability and competitiveness, and the program is the responsibility of the Department of Employment and Workplace Relations (DEWR).

The audit objective was to assess whether the design and implementation of the Incentives System by DEWR is effective.

Key findings:

• The design and implementation of the Incentives System was largely effective.
• The design and implementation of the Incentives System was effective in supporting the new program’s objective. The Regulation Impact Statement developed for the Incentives System set out options which were informed by external reviews of the apprenticeships, skills and training environment, and evaluations of the former Australian Apprenticeships Incentives Program. The program guidelines align with the mandatory requirements of the Commonwealth Grants Rules and Guidelines 2017, and the corresponding factsheets and guidance are consistent with the program guidelines.
• DEWR has implemented largely effective compliance and program monitoring arrangements for the Incentives System. It undertakes a compliance monitoring activity to assess Australian Apprenticeships Support Network (AASN) providers’ compliance with the administration of the Incentives System.