Apprentice review throws spanner in the works, say Libs

A political row has broken out over a federal government review of apprentice incentives. (Dave Hunt/AAP PHOTOS)

The government has been accused of delaying action on skills investment following a review into incentive schemes for apprentices.

Skills Minister Brendan O'Connor on Monday outlined a review of the Australian apprenticeships incentive program, which provides a financial boost for employers who take on trainees in critical industries.

The review will be tasked with examining whether additional incentives would be needed to ensure apprentices can stay in sectors facing shortages.

But opposition skills spokeswoman and Liberal deputy leader Sussan Ley said the review was only a case of the government kicking the can down the road on boosting apprentice numbers.

"This strategic review is less a strategic review and more a strategic delay, it is taking submissions until the day after the federal budget, this all but rules out any new support for struggling apprentices," she said.

"The data is clear Anthony Albanese is baking in a skills deficit which is making us more reliant on foreign workers."

Submissions for strategic review close on May 15, with consultations to be carried out online and in person in coming weeks.

Ms Ley said the timing for the review would mean it would be six to 12 months before extra incentives would be put in place.

"There are now over 50,000 less apprentices and trainees today than when Labor took office and we have seen over 110,000 less Australians starting a new course, qualification or trade," she said.

Mr O'Connor said the review would ensure apprentices and trainees would have the best outcomes.

"We know that almost half of all apprentices don't complete their training," he said.

"Addressing the completion rate is not just vitally important for individuals and employers, but also for the Australian economy."

Chief executive of the Independent Tertiary Education Council Troy Williams said the review was timely.

"Incentives are appealing to employers and have been shown to boost commencement, as well as increase completion rates when properly targeted, but they come with significant cost," he said.

"It’s essential for employers to feel confident and have the certainty that the support available now will remain in place when they are looking to employ their second and third apprentice."

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