The Victorian Automotive Chamber of Commerce (VACC) has raised concerns that proposed changes to Victoria’s apprenticeship system could discourage businesses from directly employing apprentices amid ongoing skills shortages.
The concerns relate to the Education and Training Reform Amendment (Apprenticeships, Traineeships, Schools and Other Matters) Bill 2026, which VACC says would introduce an employer licensing regime, annual licence renewals, additional compliance requirements and expanded enforcement powers.
Concerns over employer participation
VACC CEO Peter Jones said increasing regulatory requirements for businesses could make employers less willing to take on apprentices.
“You do not solve a skills shortage by making it harder for employers to employ apprentices,” Mr Jones said.
VACC argues that one of the key challenges facing apprenticeship programs is attracting enough employers willing to invest the time, cost and resources required to train apprentices.
The organisation is concerned that additional licensing and compliance requirements could create another barrier to participation.
Existing regulatory framework
VACC noted that employers and apprentices already operate within a regulatory environment involving organisations including the Victorian Registration and Qualifications Authority, Apprenticeships Victoria, WorkSafe Victoria, the Fair Work Ombudsman and the Fair Work Commission.
Mr Jones said VACC would prefer existing regulatory arrangements to be adequately resourced and enforced rather than introducing another layer of regulation.
“If the existing framework is falling short, Government should properly resource and enforce the framework we already have, not create another layer of bureaucracy,” he said.
Annual licensing raises concerns
According to VACC, the proposed framework would require employers engaging apprentices to hold a licence and renew it annually.
The organisation has also raised concerns that some employer obligations would be set out in standards that have not yet been released.
VACC argues that businesses need sufficient detail about these requirements to understand their future compliance responsibilities and potential liabilities.
Focus on attracting employers
VACC maintains that encouraging more businesses to employ and train apprentices should remain a priority as Victoria works to address workforce and trade skills shortages.
“Every apprenticeship starts with an employer saying yes,” Mr Jones said.
The organisation is calling for apprenticeship policy to reduce barriers for employers while maintaining appropriate protections and training standards for apprentices.
The Victorian Government’s proposed reforms remain subject to the legislative process.