Industry welcomes New Energy Apprenticeships payment broadening for EV technicians

In response to mounting pressure, the Australian Government has broadened the requirements to make it easier for apprentice mechanics to work on electric vehicles (EVs), along with offering an incentive to attract them – a move welcomed by the Australian Automotive Dealer Association (AADA), the Motor Trades Association of Australia (MTAA), and the Australian Automotive Aftermarket Association (AAAA).

The modifications to the New Energy Apprenticeships Program, effective July 1, 2024, were made public by Minister for Skills and Training Brendan O’Connor and Minister for Climate Change and Energy Chris Bowen.

Under the updated program, prospective auto apprentices will receive $10,000 over the course of their training, based on the following criteria:

1. The workshop where the apprentice is employed must work on electric vehicles.
2. The workshop must have the necessary tools to service EVs.
3. At least one person at the workshop must already be trained in handling EVs. 

Prior to this, the government had set a high bar for apprentices to access the $10,000 funding, requiring that 80% of the cars the business worked on had to be electric, a target that was considered almost impossible to meet given the current low uptake of EVs in Australia.

The revised criteria aim to make the program more accessible and encourage more apprentices to join the EV servicing and repair workforce.

By lowering the threshold for businesses to qualify for the funding, the government hopes to accelerate the growth of skilled technicians in the EV sector, supporting the transition to cleaner transportation. 

AADA CEO James Voortman emphasised the significance of the $10,000 support in encouraging potential apprentices to consider the automotive industry as a viable career option with long-term employment prospects that align with Australia’s net zero goals.

Mr Voortman highlighted the importance of having a well-trained workforce in place to handle the servicing, repair, and maintenance of electric vehicles, especially with the continuous introduction of new technologies in the market.

“The changes to this scheme, which remove a requirement that an apprentice’s work be solely dedicated to clean energy, is a welcome recognition that, along with servicing and repairing new technologies such as EVs and hybrids, automotive technicians will continue to provide services for traditional ICE vehicles well into the future,” said Mr Voortman.

He also drew attention to the skills shortage prevalent in the automotive service and repair industry, estimating a shortage of over 40,000 workers.

Mr Voortman stressed the importance of having policies like the New Vehicle Efficiency Standard to drive the uptake of EVs, particularly in the passenger vehicle segment, which underscores the necessity of providing incentives to attract and train workers in clean energy technologies.

The MTAA has been advocating for government support to help automotive businesses and their workforces transition to electric vehicles, as this move not only assists the industry in preparing for the anticipated influx of more than two million EVs on Australian roads by 2030 but also aligns with the government’s commitment of $60 million to aid the auto retail sector in establishing charging infrastructure. 

“Securing government support for our members and their workforces has been a top priority of the MTAA this year. We are pleased the government is listening, but note there is more to be done,” said MTAA CEO Matt Hobbs.

Australia’s automotive repair industry is largely driven by small family businesses, which represent more than 95 per cent of the sector and serve as key employers of apprentices.

The MTAA emphasises the critical importance of the current incentive scheme that serves as a lifeline, helping to alleviate the significant time and financial burdens associated with training apprentices, thereby safeguarding the industry’s future workforce.

The AAAA is confident that the program extension will boost the number of new automotive apprenticeships nationwide.

It sees this latest incentive for automotive apprentices as a positive addition to the overall challenge of addressing the skills shortage in the automotive industry. 

AAAA CEO Stuart Charity said: “More than any other time, a future in the automotive industry is an exciting prospect. We are optimistic that we will see an uptake in apprentices in our incredibly rewarding, technologically advanced, and diverse industry.”

Looking ahead to Australia’s adoption of the New Vehicle Efficiency Standard (NVES) in 2025 and in anticipation of the increasing availability and diversity of zero- and low-emission vehicles, member organisations remain dedicated to supporting businesses and apprentices in adjusting to the changes in the New Energy Apprenticeship Program.