The federal government is proposing to establish an interim Jobs and Skills Australia to provide independent advice on skills and training needs.
It will initially be made up of representatives from government, business and unions but the permanent model must also include training providers, a parliamentary committee examining the proposal has heard.
"I just don't see how you could have a meaningful roundtable discussion about reskilling and upskilling workforce ... without the providers who are doing that training in the room," Independent Tertiary Education Council Australia chief Troy Williams said on Tuesday.
"We need the Jobs and Skills Australia board in the future to have a proper, skills-based board that reflects contemporary thinking when it comes to governance."
Teritary education providers such as universities and TAFES are best placed to know what apprenticeships and traineeships are needed to keep up with demand and where there are gaps, Mr Williams said.
Meanwhile, a new survey has revealed half of all electrician apprenticeships are not completed.
The survey commissioned by the Electrical Trades Union raises questions about how Australia will deal with the energy crisis and cutting carbon emissions.
It found 52 per cent of electrical apprenticeships have been completed, with more than 37 per cent of respondents saying they had considered quitting.
One-third of apprentices felt their wages did not cover essentials such as food, travel and housing.
ETU acting national secretary Michael Wright said the system was broken.
"With apprentices considering quitting in droves, urgent action is needed to arrest a looming skills crisis that could have shocking consequences for generations," he said.
"The crisis is made worse by the abject failure of the Australian Apprenticeship Support Network system."
Prime Minister Anthony Albanese has listed electrician in the top 10 jobs in demand over the next five years.
But the Australian Education Union says the issue goes further than just the electrical trades sector.
Current government funding models created a disincentive for employers to maintain their commitments to apprenticeships, AEU secretary Kevin Bates told the committee.
"The current funding model ... for wage subsidies for apprentices is a 50 per cent subsidy in the first year, declining to 10 and five in years two and three," Mr Bates said.
"It does nothing to enhance the opportunities of those people undertaking apprenticeships to transition into a job at the end of their qualification."
Next week's jobs and skills summit would be critical in coming up with solutions to workforce challenges, Deputy Prime Minister Richard Marles said.
"We really need to look at this from every angle, so that from a whole of government, whole of country point of view, we can resolve this this question, which is why the summit is so important," he told the Seven Network on Tuesday.