It is expected that the announcement will be made in the upcoming Federal Budget, due to be handed down in May.
Money for the training fund will come from extra charges on employers seeking to hire foreign workers and complements a wider focus on vocational and non-university skills training.
On Tuesday the 457 skilled migrant visa scheme was scrapped as Prime Minister, Malcolm Turnbull, focused the Government's rhetoric on “putting Australian jobs first”.
“We are securing our borders, we are reforming migration. We are putting Australians and Australian jobs and Australian values and Australia's national interest first,” Turnbull said in a statement.
The development comes as fears that the sweeping changes might worsen the nation’s existing skills shortage.
In Western Australia, the number of new apprenticeships has fallen by more than 80%, one of the sharpest annual declines in history. The WA Government’s Construction Training Fund has estimated that construction apprenticeships fell by 25% over 2015-16.
However, concreting apprenticeships have been the worst hit, plunging 83%, while bricklaying was down 56%.
Reports have shown that within 10-15 years, nearly 40% of Australian jobs will be automated, prompting the Federal Government, schools and private industries to collaborate
in a push to provide greater skills training in the areas of ICT and robotics.
Govt vows new era of skills training
The Australian Federal Government will soon announce a $300m training fund to bolster the skills of young Australians, it has been reported.