Labor senator Doug Cameron has ripped into an upcoming review into vocational education and training, arguing the federal coalition government has torn the sector to shreds.

Prime Minister Scott Morrison announced the review into the VET sector on Wednesday night, telling business leaders in Canberra he wants to ensure students are getting the right skill sets.

"I want even more Australians to get jobs, and that means ensuring they have the right skills to drive an even stronger economy," Mr Morrison said.

The inquiry - which will be the first national review of vocational education in 40 years - will run for three months, before the next federal budget in April.

It will be led by former New Zealand tertiary education minister Steven Joyce.

Labor announced a review of post-school training, including the VET sector, in February this year.

Senator Cameron, the opposition's spokesman for skills and training, has no confidence in the coalition's review.

"This government, this incompetent government that has been cutting funding, destroying the VET system, destroying the TAFE system, have no credibility," he told reporters in Canberra on Thursday.

"And why we would need a New Zealand Tory to deal with that system is beyond me."

Meanwhile, the government is also hoping to encourage more employers to take on adult apprentices by offering one-off payments of $4000 to those who offer jobs to those aged 21 to 24 years.

At the moment, the adult apprentices support payment is only available to employers who take on apprentices aged 25 or above.

The change will come into effect from mid-2019 and cost the government $27.7 million.