4.2.2 Better wages for apprentices and payments for student placements

4.2.2 Better wages for apprentices and payments for student placements

Low wages for apprentices and mandatory unpaid placements for students are significant barriers to training completion, which are exacerbated by current cost of living pressures.

Apprentices are impacted by low wages

Apprentices play a critical role in Victoria’s transformative agenda to deliver better transport, more affordable housing and more renewable energy to all Victorians.

The Fair Work Commission sets the minimum wage rates for apprentices, generally as a percentage of the relevant adult rate in modern awards. Their wages increase after each year of their apprenticeship, or for some awards, on achieving a proportion of the required units of competency.⁵⁰ While some employers pay above the award, most apprentices are disproportionately impacted by very low wages which are often below the national minimum wage, particularly in the initial stages or years of an apprenticeship commenced before the age of 21.

Low wages are a key barrier to commencing and completing an apprenticeship, especially for mature-aged workers.⁵¹

The Victorian Government is advocating for more financial supports for apprentices

The Victorian Government advocated to the Fair Work Commission in March 2024 to consider the viability and fairness of increasing apprentice wages via the Annual Wage Review process.⁵²

The Commonwealth Government is undertaking a Strategic Review of the Australian Apprenticeship Incentive System to identify how payments for apprentices and employers in priority occupations can be improved to increase completion rates and address skill shortages.⁵³ The Victorian Government will continue to advocate for fair wages for apprentices.

Students are impacted by mandatory unpaid placements

Health care and social assistance is Victoria’s largest and fastest growing industry. Given the high demand for skilled workers in the care sector, financially supporting learners to complete their placements should be a priority.

For students who are not undertaking a paid traineeship, mandatory unpaid placements can disproportionately affect women. Many learners in female-dominated occupations such as nursing, social work and teaching need to undertake mandatory unpaid placements for long periods of time (up to 1,000 hours, which is equivalent to six months of full-time work) and potentially relocate to obtain their qualifications.

The Victorian Government is providing cost-of-living supports for placement students in areas of demand such as nursing, midwifery, social work, and community services.⁵⁴

From July 2025, the Commonwealth Government will provide a weekly Prac Payment of $319.50 for 68,000 higher education students and 5,000 VET placement students across Australia in nursing, teaching and midwifery during their placements.⁵⁵

In improving financial supports for students undertaking mandatory unpaid placements, consideration should be given to promoting: parity between supports for VET and higher education students; financial supports that provide a decent standard of living; and coverage of all occupations in demand or in shortage in the care economy (such as ageing and disability carers and nursing support and personal care workers). The duration and requirements of some work placements should also be considered.