This week’s Federal Budget the South Australian Business Chamber had our policy team reflecting on what you have told us over the last three or more years. Both through our quarterly William Buck Survey of Business Expectations but also in the many conversations we have had with you and the broader business community.
While the Federal Treasurer is correct to pleasingly report a low unemployment rate, that is not the win at the final siren. The skills mix available to South Australian business owners and employers does not match what is needed to truly create the best place to do business in the country.
At the moment, we’ve got three-quarters of our small business operators working extra hours to cover staff shortages and overtime soaring in over a third of businesses as they struggle to source labour. Yes, COVID-19 quarantine and isolation requirements have played a role here, but we must accept the fact that the skills we need and perhaps the people we need are just not here.
The South Australian Business Chamber Corporate Member and MAS National State Manager, Kara Prichard, says that continued financial investment in the vocational education and training sector, focusing on apprenticeships and traineeships is key to lessening the skills shortage.
“Ongoing support to deliver gateway services is imperative to support people into meaningful careers coupled with targeted mentoring support to see them through to successful completion.
“Any investment in Vocational Education and Training is encouraging and as we have seen over the last 18 – 24 months, the government’s response to supporting employers through the Supporting Apprentices and Trainees wage subsidy, the Boosting Apprenticeship Commencements wage subsidy and the Completing Apprenticeship Commencements wage subsidy has had a major positive impact in apprenticeship commencements and retention. We have seen businesses confidence increase in relation to taking on new staff to meet demand. These kinds of financial measures need to continue to ensure business can meet the opportunities presented to them in a growing economic environment.
“Mas National welcome the budget announcements and the measures put in place to support both employers and apprentices to commence and complete apprenticeships. It will see more support for women undertaking apprenticeships through further gateway and targeted mentoring support and addresses the current youth unemployment challenges with a new nationwide pre-employment program, specifically supporting disadvantaged youth, building capacity and empowering them on a pathway to employment.”
Currently, the Boosting Apprenticeship Commencements scheme is extended only until 30 June 2022 – so get in quick to secure that 12-month 50% subsidy if you are considering an apprentice or trainee. Beyond that, there is a ‘priority skills list’ that will certainly mean many business owners and employers (and potential future apprentices and trainees looking for new skills) will miss out on training their own if their skill is not considered a priority. The 74 skills on the skills priority list from July 2022 is available in the document on the DESE website here.
With true long-term thinking, a skills strategy for South Australia will include support for apprenticeships and traineeships, support for employers forward-thinking enough to upskill current employees, and a comprehensive migration strategy. Migration has always formed an essential part of the Australian story. The Australian Bureau of Statistics estimates that more than 30% of our resident population were born overseas, which has been central to our economic prosperity. Many skills gaps cannot be filled by the local population within the timeframes needed within our existing and emerging sectors. This is where the years of study and experience of highly skilled migrants are essential to the mix.
The Federal Government’s Skills and Training Boost encourages small businesses to train new staff and upskill existing staff, helping them to be innovative and grow. This measure will provide tax relief of $550 million. Small businesses will be able to claim a bonus 20 per cent deduction for the cost of external training courses delivered to employees in Australia or online, by providers registered in Australia. This boost will apply to eligible expenditure incurred from Budget night until 30 June 2024.
Continuing to look long-term means rebuilding our manufacturing capability. If COVID-19 has taught us anything, it is that local supply chains are less impacted by volatile global events. Just take a look at the shelves in stores of the South Australian Business Chamber corporate member Foodland. Their mantra is all about supporting local and as a result, their shelves have remained stocked whilst many others have been vacant due to supply issues and state border closures. Bringing back our manufacturing capability to South Australia means skilled and unskilled jobs. With the right support, it will mean opportunities for unskilled workers to become skilled. This aggregate increasing of the skills available here in South Australia is good for our economy. It raises the bar and drives innovation further.
Stronger collaboration between universities and business takes it a step further also. When you have business decisions based on the latest research and the commercialisation of leading technology, we all win.
The South Australian Business Chamber looks forward to sharing further details of the skills funding as they become available.
