Electrical industry welcomes government rejection of apprenticeship training tax

Peak Australian electrical industry body NECA welcomed a recent decision by the Australian Government to reject a training tax that would have unfairly penalised employers of electrical apprentices.

NECA was responding to the document ‘A Shared responsibility - Apprenticeships for the 21st Century’, an independent report on reform options for the national apprenticeships system released from the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, Senator The Hon Chris Evans.

NECA chief executive officer James Tinslay remarked that the planned overhaul of the apprenticeship system in Australia should never impact negatively on the ability of a business to engage apprentices.

“NECA welcomes the decision to reject a recommendation that was being considered by the government that would have seen a training tax introduced on businesses that engage apprentices to help fund improvements to the system,” Tinslay said. “This extra burden and bureaucracy would have been completely unfair in the electrical industry because many electrical contractors already invest heavily in the training of their apprentices.”

NECA also welcomes the acknowledgement from the Australian Government that it must work with industry to achieve reform in the apprenticeship training system that will serve the best interests of electrical contractors and training institutions.

“It is very pleasing to hear that one outcome from the independent report will be the need for closer consultation with industry before any significant changes are made, and NECA fully supports this approach,” Tinslay added. “Due to the nature of the electrical industry, it is essential that any changes to the current apprenticeship system must only be made after genuine consultation has occurred.

“NECA will continue to represent the best interests of the electrical industry during this process and supports the Australian Chamber of Commerce and Industry in its endeavours to ensure changes to the existing training system benefit the entire industry.”