Employer training is at a record high, we need the right systems to support future workers

"New data shows that work-related training in Australia remains strong, but we need to remove the handbrakes to participation and investment in this essential form of workforce skilling," said Innes Willox, Chief Executive of the national employer association, Australian Industry Group.

"While some commentary has claimed work-related training and investment in it by employers has fallen, there is clear evidence to show that the contemporary reality is actually the opposite."

New research from Australian Industry Group identifies that in 2024:

• Participation in work-related training is above the long-term average.
• The vast majority (86%) of this training is fully sponsored by employers, which is a clear and sustained increase on pre-pandemic levels.
• About 9 in 10 individuals that undertook work-related training report doing so in paid work time.
• Employer investment in paid time for work-related training was at least $3.7 billion and potentially up to $7.2 billion. When combined with expenditure on training delivery, the total investment by employers would be significantly higher.

"While this shows millions of Australians are already participating in work-related training each year, continuing to build the skills and capabilities of our workforce is essential. Employers, government and individuals themselves all have a role to play," Mr Willox said.

"It is the connection between education and training and the workplace that will drive our productivity into the future, improving the living standards of every Australian.

"It is also the key to realising the country's aspirations of building more houses and the energy transition.

"Over the last decade the focus on workplace training in policy and funding settings has diminished. A range of current policy settings also constrain investment by employers and individuals in work-related training. These handbrakes need to be removed."

There are four key ways to remove these handbrakes and boost lifelong learning in the workplace:

• Comprehensive system-wide approach: Australian Government, working with states and territories and industry, develop and implement a comprehensive national strategy for lifelong learning.
• Barriers to investment: Review specific federal and state policy settings that may be constraining investment by individuals and employers in work-related training. This should include, at minimum, consideration of the impact of the collective weight of compliance training, Fringe Benefits Tax liabilities on employers and low uptake of self-education tax deductions.
• Skills policy: Australian Government and State and Territory Governments increase investment in VET to deliver the skills uplift Australia needs, with a focus on encouraging and enabling training in the workplace context.
• Strengthening foundation skills: Improve availability and accessibility of training focussed on developing foundation skills in the workplace context.

"In late 2025 the Productivity Commission recommended the Australian Government pilot co-funded training vouchers and advisory supports to encourage small and medium enterprises to increase work-related training. This recommendation closely aligns with consistent advocacy from Australian Industry Group's Centre for Education and Training," Mr Willox said.

"Disappointingly, this recommendation has not been progressed. It should be implemented with priority and appropriate resourcing to commence better connecting education and training with the workplace in Australia.

"Employers are stepping up to try and resolve the critical skills shortages we face, so governments at all levels need to support them with the right policy approach that enables rather than constrains them to do so," Mr Willox said.

This research builds upon and updates the 2025 report: Learning that works: Skills for today and tomorrow

Media Enquiries:
Gemma Daley – 0418 148 821

Australian Industry Group Centre for Education & Training