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Topic 2: Australian Skills Guarantee

Policy objectives

  • Address national skills shortages in Construction
  • Increase participation of Apprentices and Learning Workers on Commonwealth-funded projects
  • Promote gender equality and diversity in historically male-dominated industries
  • Leverage government procurement to drive long-term workforce capability uplift

 

Eligible projects

The Australian Skills Guarantee applies to projects that are funded by the Commonwealth Government. It also applies to public–private partnerships where the Commonwealth Government provides funding towards the project.

 

See Gender Equality Action Plan for more information

 

Labour hours calculation

Labour hour calculations provide the apprentice and diversity targets on a project. The process begins with estimating total labour hours to establish the overarching apprentice target, then applies specific percentages to determine the share for women and for trade apprentices. These targets adjust each financial year based on the project’s contract start date, ensuring compliance remains current.

Overarching apprentice target

Start by estimating the total labour hours for the project. This figure sets the baseline apprentice target.

  • The overarching apprentice target is calculated by estimating the labour hours for the project
  • Overarching apprentice target = Estimated labour hours × 10 / 100
  • Once you have calculated the overarching apprentice target, the target for women can be estimated

Example

Keller estimates that they we need 10,000 labour hours to complete Project XYZ.

Overarching apprentice target = 1,000 (10,000 estimated labour hours x 10 / 100 = 1,000)

Overarching apprentice target for women

Once you know the overarching apprentice target, apply the percentage for women to calculate their share.

  • The overarching apprentice target for women is calculated by using the overarching apprentice target
  • Overarching apprentice target for women = overarching apprentice target × 6 / 100

Example

The overarching apprentice target for Project XYZ is 1,000.

Overarching apprentice target for women = 60 labour hours (1,000 overarching apprentice target x 6 / 100 = 60)

Trade-specific apprentice target for women

  • The trade-specific apprentice target for women is calculated by using estimating the labour hours that will be worked by trade apprentices
  • The trade-specific apprentice target for women = Estimated trade apprentice hours × 4 / 100

Example

Keller estimates that 500 labour hours will be worked by trade apprentices on Project XYZ.

Trade-specific apprentice target for women = 20 (500 estimated trade apprentice hours x 4 /100 = 20)

Target increase each financial year

Check the project’s contract start and completion date. Targets for women increase each financial year, so projects spanning multiple years must meet both sets of requirements.

  • Targets for Women are determined based on the project’s Contract start date and increase each financial year
  • If the project runs over more than one financial year, then the project will be subject to both requirements

Example

The contract start date for Project XYZ is 10th August 2025 with an estimated completion date of 5th July 2027. The project targets will be:

  • 2025–26 financial year = 7% Women Apprentices and  5%  Women Trade Apprentices
  • 2026–27 financial year = 8% Women Apprentices and  6%  Women Trade Apprentices

 

Key terms

Understanding the key terms in the Policy is essential for meeting its requirements. These definitions set out what contractors and suppliers must do, explain the targets they need to achieve, and show how compliance will be measured. Together, they provide the foundation for knowing what the Policy expects and how performance will be assessed.

Apprentice

Trade Apprentice

Labour Hours

  • Total hours worked on the project
  • Including On-Site and Off-Site training hours

Trade

Defined by ANZSCO as “Technicians and Trades Workers”

Woman

A person who identifies as a woman, regardless of sex assigned at birth

Overarching Apprentice Target

  • The minimum percentage of total labour hours on a Major Construction Project that must be undertaken by apprentices
  • Measured by: Labour Hours, not headcount
  • Includes: Apprentices and trainees employed under a formal Training Contract

Overarching Apprentice Target for Women

  • The minimum percentage of total Labour Hours on a Flagship Construction Project that must be undertaken by Women Apprentices
  • Purpose: Increase gender diversity in construction apprenticeships
  • Includes: Women employed as Apprentices under a Training Contract

Trade-specific Apprentice Target for Women

  • The minimum percentage of total Labour Hours on a Flagship Construction Project that must be undertaken by Women Apprentices in trade roles
  • Purpose: Promote women’s participation in skilled trades, not just support roles
  • Includes: Women Apprentices working in ANZSCO as “Technicians and Trades Workers”

 

Reporting

Reporting responsibilities are shared between head contractors and subcontractors, with each required to complete specific tasks to demonstrate compliance and track progress under the Australian Skills Guarantee.

Head Contractors must:

  • Submit a Skills and Training Plan before work starts
  • Appoint a Training Coordinator to manage delivery and reporting
  • Upload quarterly training data to the Apprenticeships Data Management System
  • Submit a Completion Report at project close-out

Subcontractors must:

 

Evidence

Evidence is required to verify apprentice and trainee participation, and it must clearly show who worked, when they worked, and how their hours contributed to the project’s compliance targets.

Overarching apprentice target

  • On-site work hours worked by apprentices and trainees
  • Off site training that contributes to the qualification and the project
  • Off-site work that contributes directly to the project (e.g. manufacturing parts for the site)

  • On-site or off site work or training hours completed by employees not enrolled in a formal traineeship or apprenticeship qualification

  • Timesheets
  • payroll reports
  • Training records or certificate of attainment
  • site sign in sheets

  • Project name
  • Employee name
  • Dates worked
  • Daily start and finish times

Overarching Apprentice Target for Women

  • On-site work hours worked by female apprentices and trainees
  • Off site training that contributes to the qualification and the project
  • Off-site work that contributes directly to the project (e.g. manufacturing parts for the site)

  • On-site or off site work or training hours completed by female employees not enrolled in a formal traineeship or apprenticeship qualification
  • On-site or off site work or training hours completed by apprentice that are not women

  • Timesheets
  • Payroll reports
  • Training records or certificate of attainment
  • Site sign in sheets

  • Project name
  • Employee name
  • Dates worked
  • Daily start and finish times

Trade-specific Apprentice Target for Women

  • On-site work hours worked by female apprentices and trainees related to trade roles
  • Off site training that contributes to the qualification and the project
  • Off-site work that contributes directly to the project (e.g. manufacturing parts for the site)

  • On-site or off site work or training hours completed by female employees not enrolled in a formal traineeship or apprenticeship qualification related to trade roles
  • On-site or off site work or training hours completed by apprentice that are not women

  • Timesheets
  • Payroll reports
  • Training records or certificate of attainment
  • Site sign in sheets

  • Project name
  • Employee name
  • Dates worked
  • Daily start and finish times

 

Non-compliance

Non‑compliance with the Australian Skills Guarantee has serious consequences. It can affect contracts, trigger financial penalties, damage reputation, and reduce future tendering opportunities. Both head contractors and subcontractors are accountable for meeting their obligations, and failure to comply may lead to audits and further investigation by the Commonwealth.

Risks

Non‑compliance creates different risks for head contractors and subcontractors. The sections below outline the specific consequences each party may face.

  • May be treated as a contract breach

  • Possible penalties include:

    • Withholding of payments

    • Liquidated damages

    • Loss of future tendering opportunities

  • Non-compliance damages company reputation with both government and community

  • Can trigger audits and further investigation

  • Contract breach penalties – defined by contract but may include withholding security or retention and damages
  • Damage to reputational with both clients and community
  • Jeopardise ability to win future contracts off previous performance

Audits

Audits are carried out to check compliance with the Australian Skills Guarantee. They provide independent verification of the data reported and ensure that evidence matches actual outcomes.

  • Conducted by the Australian Government or nominated agency
  • Verify training hours and priority group outcomes
  • Review evidence submitted via the ASG platform

 

Project Process

Keller follows a structured process to meet the Australian Skills Guarantee across every phase of a project. From tender through to project close‑out, each stage includes clear actions to ensure compliance, demonstrate workforce outcomes, and strengthen engagement with apprentices, trainees and priority groups.

Getting it right upfront

There is a suite of documents to provide detailed guidance on how to deliver each stage of the project effectively:

  • Project Checklist
  • FAQ & Troubleshooting Guide

The Commonwealth Government also have guides to assist you to comply with the Policy:

During the tender stage we need to demonstrate our capability and track record to secure the job. We review all documentation for references to the Australian Skills Guarantee and identify how the head contractor expects us to contribute to apprentice targets, including overall hours and participation by women. Where targets are not achievable, we highlight these clearly and propose alternative ways we can add value.

1. Check if the Australian Skills Guarantee forms part of the tender documentation

  • A key indicator is if the developer is a Commonwealth government department (eg. Defense, Australian Federal Police etc.)
  • Search (Ctrl F) the tender documents for key words such as apprentice hours, women, or Australian Skills Guarantee

2. Can we meet the contractual clauses asking us to contribute to apprentice targets?

  • Liaise with the delivery team to assess our capability to deliver the required apprentice hours
  • Identify risks and opportunities associated with contributing to these requirements using the Capability Assessment Template

NOTE: Keller avoids committing to apprentice and trainee targets in our contracts. Engineering and civil construction don’t have formal apprenticeship qualifications, so our scope of works falls outside this framework, and targets are not achievable. Instead, Keller invests in cadetships, delivering practical pathways into the industry, without over committing.

3. Showcase our previous performance for apprentices:

  • Submit the Past Performance Template with the tender submission

4. Provide a written statement of how we can contribute to the head contractor’s Skills and Training Plan:

  • Complete the Social Procurement Commitments Template with project‑specific apprentice opportunities
  • Flag any apprentice targets we cannot achieve and highlight any additional value we can provide
  • The Social Procurement Commitments Template and the Social Procurement Planning Guide have prompts to help identify risks and opportunities
  • Submit the completed Social Procurement Commitments Template with the tender submission
  • In some instances, the tender may require commitments to be written directly into Response Schedules. If this is the case, use the Social Procurement Commitments Template as guidance when drafting responses

5. Liaise with the head contractor throughout the tender phase to ensure clear understanding of apprentice targets

  • Document any exclusions or negotiated amendments to Skills Guarantee requirements

Note: For Major projects – Also discuss how you can contribute to the head contractor’s Gender Equality Action Plan in the Social Procurement Commitments Template.

The contract stage is where tender commitments are formalised. It ensures that negotiated requirements are accurately captured, achievable obligations are confirmed, and any agreed value‑adds are included before project delivery begins.

1. Liaise with Tender team to ensure the contract reflects what was agreed during the tender phase.

  • If not, request for the contract to be updated to reflect what was negotiated during the tender
  • Ensure any requirements we cannot achieve are not in the contract
  • We recommend removing contract clauses  committing to apprentice and trainee hours in our contracts. You can supplement this by offering to provide upskilling to existing workers. Refer to the Social Procurement Planning Guide for assistance in providing additional value.

2. Liaise with Project Delivery team to ensure those commitments can still be met and ensure any ways we can add value are in the contract

3. Document any exclusions or negotiated amendments

The planning stage ensures that apprentice targets are embedded into project delivery from the outset. It sets clear responsibilities, establishes processes for compliance, and prepares the team to collect and report accurate data throughout the project lifecycle.

1. Nominate a project lead. This person will be responsible for:

  • Conducting a handover with the Contract Negotiation team to understand the apprentice targets
  • Ensuring the apprentice targets are met throughout the project
  • Reporting project outcomes on the Apprenticeships Data Management System

2. Write a project plan to ensure smooth compliance throughout project delivery and clarify roles and responsibilities

  • Complete the Project Plan Template outlining the apprentice targets, actions required to meet those targets, and reporting methodology
  • Use the Social Procurement Planning Guide to identify sourcing channels for apprentices and trainees
  • The Project Plan is an internal working document used to assist the project team in delivering a compliant project. It is not shared with the head contractor or developer

3. Set up data collection folders and templates

  • Use the Folder Structure Guide to implement the data collection process in preparation for the project delivery stage

4. Set up an account on the Apprenticeships Data Management System

5. Train the project team on the Policy and its requirements

  • Give project staff access to this training module

The delivery stage is where plans are put into action. It focuses on meeting apprentice targets, collecting accurate evidence and reporting progress. Strong delivery ensures compliance with the Australian Skills Guarantee and demonstrates tangible workforce outcomes.

1. Follow the Project Plan

  • The project lead is responsible for ensuring the project team follows the Plan
  • Deliver apprentice commitments as outlined in the Plan

2. Collect evidence

  • Record apprentice labour hours and training hours completed using the Social Procurement Tracker
  • Include subcontractor contributions

3. Report progress

The close‑out stage captures the results of the project and ensures lessons are carried forward. It focuses on reporting achievements, documenting apprentice and participation outcomes, and refining processes so future projects can build on what has been learned.

1. Provide the head contractor with a final report to showcase project outcomes

  • Use the Project Completion Report Template to summarise apprentice hours and compliance with targets

2. Draft a case study for use in future tenders

  • Refer to the Case Study Template to highlight key achievements and demonstrate capability in meeting apprentice targets

3. Document achievements and lessons learned

  • Use the Project Reflection Template to record successes, challenges, and areas for improvement

4. Reflect and adjust

  • Apply insights gained to strengthen apprentice participation strategies in upcoming projects
  • Adjust any templates or processes to improve efficiencies on future projects

Not intended as legal advice. Read full disclaimer.