Australian Skills Guarantee: A Reporting Guide for Commonwealth Construction Projects
The Australian Skills Guarantee requires apprentices and trainees to perform 10% of labour hours on Commonwealth construction projects of $10 million or more, with rising targets for women. The thresholds, the year-by-year targets, quarterly ADMS reporting, and what happens when a supplier misses.
The Short Answer
The Australian Skills Guarantee is a Commonwealth procurement connected policy that started on 1 July 2024. On Commonwealth construction projects of $10 million or more (GST inclusive), apprentices and trainees must perform a minimum of 10% of all labour hours, and set shares of apprentice and trainee hours must be performed by women, rising each financial year to 2030. Suppliers report against the targets quarterly in the Apprenticeships Data Management System (ADMS).
This guide covers who the Skills Guarantee applies to, the targets for each year, how labour hours are counted, what reporting looks like and what happens when a supplier falls short. Policy facts come from the Department of Employment and Workplace Relations (DEWR) and the Procurement Connected Policy, linked at the end. Always check the version of the policy that applies to your contract.
What Is the Australian Skills Guarantee?
The Skills Guarantee is one of the Commonwealth's procurement connected policies, which entities apply alongside the Commonwealth Procurement Rules. DEWR administers it. It applies to non-corporate Commonwealth entities and to prescribed corporate Commonwealth entities listed in section 30 of the PGPA Rule 2014.
Who Does the Australian Skills Guarantee Apply To?
The Procurement Connected Policy (Version 1.2) defines two kinds of project:
- Major Construction Projects: $10 million and above (GST inclusive), using one of the construction codes listed in the policy
- Flagship Construction Projects: $100 million and above (GST inclusive)
It does not apply to projects delivered wholly overseas, and for projects partly delivered overseas it applies only to the domestic components. Trade partners have no standalone obligations, but they should report to the supplier, so in practice the head contractor needs apprentice and trainee hours from the whole supply chain.
The Australian Skills Guarantee Targets
According to DEWR's construction procurements page, Major Construction Projects carry three targets:
- Apprentices and trainees: a minimum of 10% of all labour hours
- Women apprentices and trainees: a share of all apprentice and trainee labour hours
- Women trade apprentices and trainees: a share of trade apprentice and trainee labour hours
The 10% target stays the same. The two women's targets increase by one percentage point each year, reaching 12% and 10% in 2030:
- 2024-25: 6% of apprentice and trainee hours, 4% of trade apprentice and trainee hours
- 2025-26: 7% and 5%
- 2026-27: 8% and 6%
- 2027-28: 9% and 7%
- 2028-29: 10% and 8%
- 2029-30: 11% and 9%
- From 1 July 2030: 12% and 10%
Flagship Construction Projects must meet the Major Construction Project targets, set and meet higher targets for women, and provide a Gender Equality Action Plan. The policy does not publish a fixed percentage for the higher Flagship targets; they are set for each project.
How Labour Hours Are Counted
Performance is calculated using labour hours, not headcount. Under the Procurement Connected Policy:
- Labour hours are the number of hours a person worked on an eligible project
- Hours worked off-site to deliver inputs to the project can be counted, as can off-site formal training
- Hours delivered by workers based overseas do not count
- Apprentices and trainees must be employed under a registered training contract
- The 10% target is assessed at the end of the contract against total estimated labour hours, while the women's targets are assessed every financial year
That last point shapes how you report. A project can recover a slow start on the 10% target before completion, but each year's women's targets are measured in that year.
What Does Skills Guarantee Reporting Look Like?
DEWR's reporting page sets out the cycle:
- Suppliers report against the Skills Guarantee targets in ADMS at the end of each quarter
- Quarterly reports must be finalised in ADMS within 10 working days of the end of the quarter
- The contracting entity assesses compliance each quarter and submits its assessments to DEWR every six months
- The contracting entity also reports at the end of the project
Ten working days is a short window. The data needs to be collected from trade partners through the quarter, not requested after it ends.
What Happens If a Supplier Misses a Target?
The policy sets out escalating responses depending on how far a supplier is from its targets and why. A small shortfall is handled with an educative approach. Larger shortfalls require the supplier to explain the reasons and the strategies it will put in place to rectify the situation, and a record of non-compliance can be taken into account in value for money assessments in future approaches to market. False declarations or dishonest behaviour can lead to exclusion under the Commonwealth Procurement Rules.
Recent Changes
Version 1.2 of the Procurement Connected Policy was released on 13 August 2025 and applies to approaches to market issued from 1 October 2025. DEWR's release notes there were no changes to targets for existing Major Construction Projects. Version 1 continues to apply to earlier approaches to market, so check which version your contract was let under.
How to Set Up Skills Guarantee Reporting on a Project
- Confirm the policy version, the project category and the total estimated labour hours at award
- Write apprentice and trainee reporting, including gender and trade status, into every trade package
- Collect hours per worker monthly with training contract evidence, so each quarter's ADMS report is ready inside 10 working days
- Track the women's targets against the right financial year's percentages, not the current headline figures
- Exclude hours that do not count, such as hours worked by overseas-based workers, before they reach a report
- On Flagship projects, track the project's own higher women's targets and Gender Equality Action Plan alongside the hours
How Catchment Helps With Skills Guarantee Reporting
Catchment records apprentice and trainee hours as participation hours against workforce targets, with gender and trade status captured per worker. Trade partners submit monthly for free, evidence stays attached, and progress against the 10% target and each year's women's targets is visible through the quarter. When the ADMS window opens, the figures are already collected and checked.
Projects that also carry state policies, such as Victoria's Major Projects Skills Guarantee or Building Equality Policy, can report against each from the same worker-level data. To see how it would be set up on your project, book a demo.
Sources
From the blog
Building Equality Policy Reporting: A Guide for Victorian Contractors
The Building Equality Policy sets minimum hours of work for women on Victorian Government construction projects of $20 million or more. Who it applies to, the targets, what contractors report and when, how non-compliance is managed, and how to set up reporting that holds up.
Nov 3, 2026 SocialProcurementSocial Procurement vs ESG Reporting: What Australian Construction Teams Actually Report
ESG reporting and social procurement reporting are often treated as one thing. In Australia they are different obligations, with different laws, audiences and timeframes. What mandatory sustainability reporting covers, what social procurement policies require on projects, and where the two meet.
Nov 3, 2026 SocialProcurementVictorian Social Procurement Framework: A Reporting Guide for Suppliers
The Victorian Social Procurement Framework applies to every Victorian Government procurement, with requirements that step up at $1 million or $3 million, $20 million and $50 million. The value bands, the ten objectives, who counts as a social benefit supplier, and what suppliers report.
Nov 3, 2026