The Australian Skills Guarantee (Skills Guarantee) will use government investment in major projects to help train the next generation of skilled workers. The Skills Guarantee is a key commitment under the Australian Government’s Secure Australian Jobs Plan.
The Skills Guarantee will introduce new national targets to ensure the equivalent of one in 10 workers on Australian Government funded major projects are an apprentice, trainee or paid cadet.
The Skills Guarantee will also introduce national targets for women to increase the proportion of women working on major projects and drive long term sustainable change to reduce gender segregation in the apprenticeship system.
For information on the previous Discussion Paper consultation process, please visit Skills Guarantee Consultation.
Skills Guarantee key design and implementation timeframes
The Skills Guarantee will initially apply to major construction and information and communication technology (ICT) projects with a total contract value of $10 million or more.
Major Construction Projects
The Skills Guarantee will apply to Commonwealth procurements in the construction sector. Suppliers will be required to meet:
- Overarching apprentice/trainee targets: a minimum of 10% of all labour hours to be undertaken by apprentices/trainees.
- Apprentice/trainee target for women: a minimum of 6% of all apprentice/trainee labour hours to be undertaken by women.
- Trades apprentice/trainee target for women: a minimum of 4% of trade apprentice/trainee labour hours to be undertaken by women.
The targets for women in construction projects will increase each year until the proportion of women in apprenticeships and traineeships would be more than double and those in trade apprenticeships and traineeships tripled by 2030 on Skills Guarantee projects.
Major ICT Projects
The Skills Guarantee will apply to Commonwealth procurements in the ICT sector. Initially, targets for apprentices, trainees and paid cadets, and targets for women, will be negotiated with suppliers on a project-by-project basis.
Flagship Construction Projects
There will also be more ambitious targets for women in flagship Commonwealth procurements with a total contract value of $100 million or more in the construction sector. Suppliers will be required to meet the following requirements:
- Meet the targets that apply to major construction projects.
- Propose higher targets for women.
- Prepare a Gender Equality Action Plan outlining how targets will be achieved.
A factsheet on these key elements of the Skills Guarantee is available at:
Targets will apply to tender processes for Commonwealth projects from 1 July 2024.
Ongoing engagement with the sector is critical to the success of the Skills Guarantee. The department will continue to seek stakeholder views on the detailed guidelines, reporting requirements and other materials to support affected suppliers.
For further information on the Australian Skills Guarantee, please contact email@example.com.
Alternatively, you can register your details below to be kept up to date on the progress of the Skills Guarantee: