The Australian Skills Guarantee (Skills Guarantee) uses 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 introduced new national targets for apprentices, trainees and paid cadets working on Australian Government funded major projects.
The Skills Guarantee also introduced 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.
Skills Guarantee Procurement Connected Policy
The Skills Guarantee Procurement Connected Policy (PCP) applies from 1 July 2024 to direct Australian Government procurements in the construction and information and communication technology (ICT) sectors.
Skills Guarantee at a glance (for direct Australian Government procurements)
The Skills Guarantee PCP applies to direct Australian Government procurements in the construction and ICT sectors, where the procurement has an estimated individual value of $10 million or more.
Major Construction Projects
Major construction projects (procurements with an estimated individual value of $10 million or more) are required to meet the following targets:
- Overarching apprentice target: a minimum of 10% of all labour hours to be undertaken by apprentices/trainees.
- Overarching apprentice target for women: a minimum of 6% of all apprentice/trainee labour hours to be undertaken by women.
- Trade-specific apprentice target for women: a minimum of 4% of trade apprentice/trainee labour hours to be undertaken by women.
To drive sustainable change, the targets for women for major construction projects increase annually by one percentage point, reaching a minimum of 12% for women in apprenticeships and traineeships and 10% for women in trade apprenticeships and traineeships in 2030.
| Targets apply | Overarching apprentice target for women | Trade-specific apprentice target for women |
|---|---|---|
| 1 July 2024 to 30 June 2025 | 6.0% | 4.0% |
| 1 July 2025 to 30 June 2026 | 7.0% | 5.0% |
| 1 July 2026 to 30 June 2027 | 8.0% | 6.0% |
| 1 July 2027 to 30 June 2028 | 9.0% | 7.0% |
| 1 July 2028 to 30 June 2029 | 10.0% | 8.0% |
| 1 July 2029 to 30 June 2030 | 11.0% | 9.0% |
| 1 July 2030 onwards | 12.0% | 10.0% |
Major ICT Projects
The Skills Guarantee PCP applies to direct Australian Government procurements in the ICT sector, where the procurement has an estimated individual value of $10 million or more. 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
Flagship construction projects (procurements with an estimated individual value of $100 million or more in the construction sector) are required to propose more ambitious targets for women.
Suppliers of flagship construction projects are required to meet the following requirements:
- Meet the targets that apply to major construction projects.
- Propose and meet 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.
Other Skills Guarantee implementation approaches
While the Skills Guarantee PCP only applies to direct Australian Government procurements in construction and ICT, we are also working across the government to apply the Skills Guarantee to:
- the National Housing Accord,
- the 2032 Olympic and Paralympic Games,
- the Federation Funding Agreement Schedule on Land Transport Infrastructure Projects (formerly the National Partnership Agreement on Land Transport Infrastructure Projects).