The Motor Traders' Association of New South Wales (MTA NSW) has welcomed the Federal Government's decision to extend the $5,000 apprenticeship incentive for electric vehicle technicians until December 2026, while warning that planned cuts to incentives for the broader automotive sector risk deepening an already critical skills shortage.
MTA NSW acknowledges that the continuation of the Key Apprenticeship Program (KAP) incentive for new energy trades demonstrates the government's recognition of electric vehicle technicians as a priority occupation for Australia's future workforce.
However, the organisation echoes concerns from the Victorian Automotive Chamber of Commerce (VACC) and the Motor Trades Association of Australia about the Federal Government's decision to reduce the Priority Hiring Incentive for other automotive apprenticeships from $5,000 to $2,500 from the start of next year.
MTA NSW CEO, Stavros Yallouridis, said the timing is particularly troubling given automotive technicians have appeared on national, state and territory skills shortage lists for over a decade.
"While we appreciate the government's commitment to supporting the electric vehicle transition, we're deeply concerned about reducing support for the rest of the automotive sector," Yallouridis said.
"This $2,500 reduction will act as a handbrake on small businesses looking to take on apprentices in a tight economic environment. For many of our members, that difference is decisive in whether they can afford to invest in training the next generation."
Yallouridis noted that while electric vehicle uptake is growing, the vast majority of Australia's 22 million vehicles, travelling more than 260 billion kilometres annually, still require traditional automotive skills.
"Without adequate apprentice numbers, we cannot maintain the productivity growth our sector and the broader economy desperately need," he said.
"Fewer apprentices means reduced productivity, longer wait times for consumers, and higher costs for vehicle servicing and repairs. Every freight truck, regional service van, and family car depends on this workforce. Without qualified technicians, the costs flow to everyone through higher repair times, business downtime, and reduced freight efficiency."
MTA NSW is calling on the Federal Government to reconsider the reduction and ensure the broader automotive sector receives equitable support alongside clean energy trades.
"We need a balanced approach that recognises both today's automotive industry and the transition ahead. Our members are committed to training Australia's future workforce, but they need consistent policy settings and adequate support to make that possible," Yallouridis concluded.