Victoria Plans Employer Licensing for Apprentices

Industry Raises Concerns

Anyone with even a slight interest in home building or construction more generally knows that attracting and retaining apprentices is a major challenge. Australia faces a shortage of at least 83,000 construction workers, and with the Brisbane Olympics and data centres likely to further increase demand for workers, we need to build our future workforce.

To attract and retain apprentices, it should be obvious that we need to have existing builders willing and able to take on the role of hosting and training apprentices. Thankfully, many builders and contractors, and especially many running small businesses, have been willing and able to host apprentices. Without these small businesses, the industry’s capacity to take on apprentices would be greatly reduced.

In blunter terms, if we want more apprentices, we need to support the small businesses that host the majority of them. Anything that makes it harder for a small business to take on an apprentice just cannot be tolerated.

So, considering the above, it is extraordinary that the Victorian government has recently moved to introduce a new licensing scheme that would require any employer wishing to take on an apprentice to first obtain an “employer licence.” The proposal represents a significant shift in how apprenticeships are regulated in the state.

Under the proposal, builders and other employers of apprentices would need this licence in addition to existing obligations, such as building registration and labour hire licensing. Another approval by government just to continue business as usual.

While the Bill does not impose a direct fee for applying for or renewing a licence, employers will still face costs, including mandatory police checks — expenses that often exceed any licence fee itself. And of course, a direct fee may also come later.

The reform stems from recommendations made in the Victorian government’s Apprenticeship Taskforce Final Report released in March 2024. Although the government committed to implementing its Taskforce’s recommendations in October 2024, the detailed legislative proposal has only now been released, nearly two years later. The Bill is being rushed through Parliament ahead of the Victorian state election, leaving little time for meaningful consultation.

The legislation allows the licensing scheme to commence as late as 1 July 2029, but it also gives the government the option to start earlier if ready. Recent experiences of the Victorian government implementing new laws suggest that a 1 July 2029 start date is a safe bet.

HIA will keep its members up to date, and while it hopes this misguided proposal does not proceed, it suggests anyone who hosts or cares about the future of apprentices to keep a close eye on this matter.

If you are in doubt and a HIA member, don’t hesitate to contact us on 1300 650 620 for more information.