Apprenticeships and traineeships

COVID-19 Response Package - supporting apprentices and trainees

The Supporting Apprentices and Trainees (SAT) wage subsidy provides $2.8 billion over five years from 2019-20 (including $4.4 million in capital funding over two years from 2019-20) to reimburse eligible businesses up to 50 per cent of an apprentice or trainee's wages. Subsidies are capped at $7000 per quarter, per eligible apprentice or trainee. Eligibility has included:

• From 1 January 2020 to 30 June 2020, small businesses (of less than 20 employees) could claim the SAT wage subsidy for apprentices or trainees who had been in-training with the business as at 1 March 2020.
• From 1 July 2020 to 31 March 2021, small and medium-sized businesses (of less than 200 employees) can claim the SAT wage subsidy for apprentices or trainees who have been in-training with the business as at 1 July 2020.
• A wage subsidy is also available to eligible Group Training Organisations where the Host Employer of any size is receiving the JobKeeper payment and retains their apprentice or trainee. [From the July 2020 Economic and Fiscal Update measure titled COVID-19 Response Package - supporting apprentices and trainees] (Budget paper no. 2: Budget measures, p. 229).

JobMaker Plan - boosting apprenticeships wage subsidy

The Boosting Apprentices Wage Subsidy is an additional $1.2 billion over four years from 2020-21 ($409.4 million in 2020-21) to expand the Supporting Apprentices and Trainees (SAT). From 5 October 2020 to 30 September 2021, businesses of any size can claim the subsidy for new apprentices or trainees who commence during this period (Budget paper no. 2: Budget measures, p. 77).

Additional Identified Skills Shortage payment

The Skills Reform package included $66.7 million in additional funding for the Additional Identified Skills Shortage payment to support employers taking on new apprentices in areas of identified national skills shortages (Budget paper no. 2: Budget measures, p. 238).

JobMaker Plan - Skills Reform Package

The 'JobMaker Plan - Skills Reform Package' includes:

• $91.6 million over four years from 2020-21 (and $1.8 million per year ongoing) for a new Apprenticeships Data Management System (ADMS) to replace the Training and Youth Internet Management System (TYIMS).
• $1.7 million over four years from 2020-21 for the development of a National Skills Priority List for Apprenticeships to replace the current three lists with a single list based on a skills shortage methodology (Budget paper no. 2: Budget measures, p. 80).

Incentives for Australian Apprenticeships Program deferral

As part of the Government's economic response to COVID-19, the commencement of the Incentives for Australian Apprenticeships Program was deferred from 1 July 2020 to 1 January 2021. The budget further delays the commencement of the program from 1 January 2021 to 1 July 2021. Employers and Australian apprentices will continue to receive support through the existing Australian Apprenticeships Incentives Program (Budget paper no. 2: Budget measures, p. 77).

Employment

Employment Services

This package includes $143.7 million over four years from 2020-21 to provide targeted support to people who have lost their job due to the COVID-19 pandemic, including:

• $62.8 million over two years from 2020-21 to establish a Local Jobs Program to coordinate employment and training solutions at a local level in 25 regions across Australia. On-the-ground Employment Facilitators will work with a range of stakeholders, including employers, employment services providers and training providers, and local job seekers to connect job seekers with training, job opportunities and other support (Budget paper no. 2: Budget measures, p. 74)
• $35.8 million in 2021-22 to maintain Employment Fund credits to ensure employment services providers can continue to provide job seekers the support they need to become job-ready and keep a job (Budget paper no. 2: Budget measures, p. 74).
• $21.9 million over four years from 2020-21 to quickly connect young people (aged 15-24) to specialist youth assistance delivered through the Transition to Work employment service, and to develop online training to increase their job-ready skills and succeed in the labour market (Budget paper no. 2: Budget measures, p. 74) .
• $5.7 million over two years from 2020-21 to extend eligibility for the New Business Assistance within the New Enterprise Incentive Scheme program to individuals undertaking part-time work or study or those with caring responsibilities. The extended eligibility would also give existing micro-business owners, with one to four employees, impacted by COVID-19, access to small business assistance services (Budget paper no. 2: Budget measures, p. 75).
• $295.9 million over four years from 2020-21 (including $150.7 million in capital funding) to establish a new digital employment services platform that will be available to all Australians to help them improve their skills, support proactive employer engagement and better connections to job seekers, and help job seekers match and apply for job opportunities (Budget paper no. 2: Budget measures, p. 75).

Broadening the Prime Minister's Veterans' Employment Program

$6 million over four years from 2020-21 (and $1.2 million in 2024-25) is allocated to continue the Prime Minister's Veterans' Employment Program, including the annual Prime Ministers Veterans' Employment Awards. This measure will also improve veteran employment datasets and support small business and entrepreneurship, including expanding the eligibility of the New Enterprise Incentive Scheme to transitioning Australian Defence Force Members and their families (Budget paper no. 2: Budget measures, p. 167).

COVID-19 Response Package – supporting job seekers

The ‘COVID-19 Response Package – supporting job seekers’ includes providing job seekers access to Employment Fund credits at the commencement of their period of unemployment, helping them to rapidly gain the tools and build the skills and experience they need to transition to critical vacancies; $2.7 million in 2020-21 to extend Regional Employment Trials to 30 June 2021; and $41.7 million over three years from 2019-20 in additional funding to the Career Transition Assistance program to enable mature age job seekers to be more readily referred to the program (Budget paper no. 2: Budget measures, pp. 230-231).

National Careers Institute

Forming part of the 'Job Maker Plan - Skills Reform' package, $29.6 million over four years from 2020-21 is allocated to support the ongoing role of the National Careers Institute to simplify and strengthen career information, promote vocational education and training (VET) pathways, and enhance partnerships between industry, employers, schools and tertiary providers, and $0.9 million in 2020-21 for the National Careers Institute to provide dedicated advice to school-leavers and job seekers about the training options suited to their needs to succeed in the jobs of the future (Budget paper no. 2: Budget measures, pp. 80-81).

Industry

PaTH Business Placement Partnerships - national industry associations

$11.9 million over three years from 2019-20 will be provided to establish Prepare, Trial, Hire (PaTH) Business Placement Partnerships with selected industry associations that have a national footprint. This measure will develop and deliver industry-led employment pathways to help young people into work. It will also draw upon existing government funded employment programs, such as the Youth Jobs PaTH program and the National Work Experience Program. Part of the costs of this measure will be met from within the existing resources of the Department of Education, Skills and Employment (Budget paper no. 2: Budget measures, p. 236).

Fringe Benefits Tax - exemption to support retraining and reskilling

An exemption will be given from the 47 per cent fringe benefits tax (FBT) for employer provided retraining and reskilling benefits provided to redundant, or soon to be redundant employees where the benefits may not be related to their current employment. This measure applies from announcement and is estimated to decrease receipts by $7.0 million over the forward estimates period (Budget paper no. 2: Budget measures, p. 15).

Australia's Cyber Security Strategy 2020

$37.7 million over four years from 2020-21 is allocated for the Department of Industry, Science, Energy and Resources to support industry and academia to develop innovative approaches to improve cyber security skills and long-term workforce planning. Funding for this initiative will be offset by redirecting funding from the 2019-20 MYEFO measure titled 'Election Commitment - Cyber Security Resilience and Workforce Package' (Budget paper no. 2: Budget measures, p. 59).

JobMaker Plan - Digital Business Plan

The 'JobMaker Plan - Digital Business Plan' includes $2.5 million in 2020-21 to support an industry-led Digital Skills Finder Platform to enable Australian workers and small to medium enterprises to easily find digital skills training courses for reskilling and upskilling in digital literacy (Budget paper no. 2: Budget measures, p. 66).

JobMaker Plan - accelerated Defence initiatives to support COVID-19 recovery

The 'JobMaker Plan - accelerated Defence initiatives to support COVID-19 recovery' is $1.0 billion over two years from 2020-21 to deliver projects that will support an estimated 4,000 jobs across Australia and strengthen the Australian defence industry. Key initiatives include increasing funding available for Defence innovation, industry and skilling grants (Budget paper no. 2: Budget measures, p. 70).

COVID-19 Response Package - ageing and aged care

The 'COVID-19 Response Package - ageing and aged care' measure provides $10.8 million over five years from 2020-21 to enhance the skills and competencies of Enrolled Nurses and Registered Nurses working in aged care by expanding the Australian College of Nursing Scholarship Program and establishing an Aged Care Transition to Practice Program to help graduate nurses transition to the aged care workforce, and to establish a skills development program for nurses and personal care workers working in residential aged care (Budget paper no. 2: Budget measures, p. 95).

JobMaker Plan - Modern Manufacturing Strategy

$1.5 billion over five years from 2020-21 is allocated to support the Modern Manufacturing Strategy which is focused on building competitiveness, scale and resilience in the Australian manufacturing sector. Investment and support will focus on creating manufacturing strength and capability in six areas of comparative advantage and strategic interest: resources technology and critical minerals processing; food and beverages; medical products; recycling and clean energy; defence; and space. Funding includes $52.8 million over three years from 2020-21 for a second round of the Manufacturing Modernisation Fund, which co-funds capital investments that help manufacturers scale-up, invest in new technologies, create and maintain jobs, and upskill their workers. This measure builds on the 2019-20 MYEFO measure titled 'Election Commitment - Manufacturing Modernisation Fund - establishment' (Budget paper no. 2: Budget measures, p. 120).

National Agreements

Total payments to the states and territories for skills and workforce development are estimated at $2.3 billion in 2020-21, comprising:

• National Skills and Workforce Development Specific Purposes Payment (SPP): $1.6 billion
• $500 million - to be matched by the states - towards the $1 billion JobTrainer Fund
• National Partnerships: $200 million (Budget paper no. 3: Federal financial relations, p. 35).

National Skills and Workforce Development SPP

The National Agreement for Skills and Workforce Development identifies the long-term objectives of the Commonwealth and the States in the areas of skills and workforce development. The National Skills and Workforce Development SPP is the funding associated with Agreement.

The allocations to the states and territories for 2020-21 are: New South Wales $495.8 million, Victoria $407.8 million, Queensland $315 million, Western Australia $161.1 million, South Australia $107 million, Tasmania $32.8 million, Australian Capital Territory $26.2 million, and Northern Territory $14.8 million (Budget paper no. 3: Federal Financial Relations, p. 34).

National Partnerships

In 2020-21, funding of $700 million will be provided through National Partnership and Project payments comprising:

• Energising Tasmania ($4.6 million) to provide fee-free training and support for training materials to encourage Tasmanians to train in areas of priority skills needs for the energy sector.
• JobTrainer Fund ($500 million, to be matched by the states) to provide a rapid increase in free or low cost training places for job seekers and young people, including school leavers, in areas of identified skills need and/or employment growth. The funding is allocated to New South Wales ($159.3 million), Victoria ($130.3 million), Queensland ($100.5 million), Western Australia ($51.7 million), South Australia ($34.5 million), Tasmania ($10.5 million), Australian Capital Territory ($8.4 million), and Northern Territory ($4.8 million).
• National Infection Control Training Fund ($40 million, with $31.6 million allocated in 2020-21 to be matched by the states) to accelerate the take up of infection prevention and control training for frontline workers. Funding in 2020-21 is allocated to New South Wales ($12.9 million), Victoria ($10.4 million), Queensland ($8 million) and Northern Territory ($0.4 million).
• Revitalising TAFE campuses across Australia - $50 million over 2 years ($25 million in each year) to improve vocational education infrastructure. For 2020-21, the funding is allocated to New South Wales ($5 million), Victoria ($4.8 million), Queensland ($6.4 million), Western Australia ($2 million), South Australia ($2 million), Tasmania ($2 million), Australian Capital Territory ($2 million), and Northern Territory ($0.8 million).
• Skilling Australians Fund ($138.8 million) – with a strong focus on apprenticeships and traineeships, the fund supports training through projects focused on skills priorities. In 2020-21, funding is allocated to New South Wales ($78.5 million), Western Australia ($32.2 million), South Australia ($16.7 million), Tasmania ($5 million), Australian Capital Territory ($4.1 million), and Northern Territory ($2.3 million) (Budget paper no. 3: Federal financial relations, pp. 35-37).

Regulation

Australian Skills Quality Authority resourcing

The Australian Skills Quality Authority (ASQA) estimates its total resourcing will be $63.057 millon, which includes a departmental appropriation of $40.583 million for the 2020-21 financial year (Portfolio budget statements 2020-21: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 171).

ASQA's priorities for the year ahead

In 2020-21 ASQA will focus on implementing the recommendations from the April 2020 Rapid Review into their regulatory practises and processes; working with providers to support quality training during the COVID-19 pandemic and to monitor current and post-COVID-19 risks as they emerge; addressing the focus areas and progressing the strategic initiatives detailed in the Authority's Regulatory Strategy 2020-22; and continued administration of fee waivers and preparation for return to cost recovery (Portfolio budget statements 2020-21: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, pp. 169-170).

COVID-19 Response Package - JobTrainer Fund – establishment

ASQA will receive $16.078 million over four years for the measure 'Getting Australians back into jobs - VET, Skills and Employment Service Options' published in the Economic and Fiscal Update July 2020 to develop new quality standards and arrangements for Registered Training Organisations (RTOs) (Portfolio budget statements 2020-21: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 177; July 2020 Economic and Fiscal Update, p. 117).

Skills Package - strengthening the national training system

$8.0 million ($3 million in 2019-20 and $1.8 million in 2020-21) of the $18.1 million allocated over four years for 'Skills Package - strengthening the national training system' published in the 2019-20 Mid-Year Economical Fiscal Outlook was allocated to ASQA to strengthen quality assurance in the VET sector; expand ASQA's educative role; and improve ASQA's regulatory approach (Portfolio budget statements 2020-21: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 177; 2019-20 Mid-Year Economical Fiscal Outlook, p. 214).

COVID-19 Response Package - higher education: regulatory fee relief and full cost recovery delay

The 'COVID-19 Response Package - higher education' includes:

• $47.9 million over five years from 2019-20 in regulatory fee relief for universities and private education providers. This includes waiving or refunding fees and charges collected by ASQA, the Tertiary Education Quality and Standards Agency (TEQSA) and the Department of Education, Skills and Employment in relation to the Commonwealth Register of Institutions and Courses for Overseas Students from 1 January 2020 to 30 June 2021.
• Delaying the collection of the 2019-20 Tuition Protection Service levy by one year, and delaying the introduction of full cost recovery arrangements for ASQA and TEQSA to 1 July 2021, at a cost of $28.6 million over five years from 2019-20 (Budget paper no. 2: Budget measures, p. 226).

Training providers and programs

National Skills Commission - permanent establishment

The Skills Reform package will provide $141.1 million over five years from 2019-20 (including $6.1 million in capital funding over four years from 2020-21) to permanently establish the National Skills Commission to provide advice on Australia's future workforce changes and current and emerging skills needs, with a focus on VET. This measure includes $66.7 million in additional funding for the Additional Identified Skills Shortage payment, and $36.2 million for this measure has already been provided for by the Government (Budget paper no. 2: Budget measures, p. 238).

JobMaker Plan - Skills Reform Package

The 'JobMaker Plan - Skills Reform Package' allocates $263.0 million over four years from 2020-21 to continue to improve the quality of the VET system and to respond to the 2019 Expert Review of Australia's VET System. The package includes:

• $52.3 million over three years from 2020-21 to expand the Skills for Education and Employment (SEE) program to support additional places for basic foundational language, literacy and numeracy skills training. A scoping study would also be undertaken to inform development of a new national framework for foundational skills.
• $11.9 million over three years from 2020-21 to continue the VET FEE-HELP (VFH) Redress measure in 2021 and 2022 to support students who incurred debts under the VFH loans scheme due to inappropriate conduct of their private VET provider. This measure will close for new applicants on 31 December 2022. Funding will be partially met from within the existing resources of the Department of Education, Skills and Employment, and builds on the July 2020 Economic and Fiscal Update measure titled 'Skills Reform Package' and the 2019-20 Budget measure titled 'Skills Package - delivering skills for today and tomorrow'.
• The 'JobMaker Plan - Skills Reform Package' also includes the development of a National Skills Priority List for Apprenticeships and a new Apprenticeships Data Management System - see the Apprenticeships and Traineeships section above for more information on these two measures; and supporting the ongoing role of the National Careers Institute - see the Employment section above for more information (Budget paper no. 2: Budget measures, p. 80).

COVID-19 Response Package - JobTrainer Fund – establishment

The 'COVID-19 Response Package - JobTrainer Fund - establishment' is an allocation of $586.8 million over five years from 2019-20 (including $3.7 million in capital funding) to ensure the VET system can play a critical role in supporting Australia's future growth and prosperity, including the economic recovery from COVID-19. This includes:

• $500 million in 2020-21 to establish a national JobTrainer Fund - see National Agreements above for more information.
• $40 million over two years from 2019-20 for around 80 000 fee-free, or very low cost, nationally accredited infection control short course training places for workers in customer facing businesses - see National Agreements above for more information.
• $29.8 million over four years from 2020-21 to accelerate implementation of the VET Reform Roadmap, developed with the states and territories, to simplify and streamline national qualifications, introduce improved industry engagement, and progress implementation of the Skills Organisation (SO) model, including extending the current SO mining pilot to 30 June 2023.
• $16.1 million (including $3.7 million in capital funding) to develop new quality standards and arrangements for Registered Training Organisations, to be implemented by ASQA.
• $0.9 million in 2020-21 for the National Careers Institute to provide dedicated advice to school-leavers and job seekers - see the Employment section above for more information (Budget paper no. 2: Budget measures, p. 277).

Adult Migrant English Program

The Adult Migrant English Program (AMEP) is being reformed to improve English language outcomes for migrants. As part of the reform, the 510 hour cap on class hours and time limits on the free English language tuition available under the Adult Migration English Program has been removed. The program now sits with the Home Affairs portfolio and the reforms are part of the Department of Home Affairs Social Cohesion measures (Economic Recovery Plan for Australia: guaranteeing the essential services, p. 22; Budget paper no. 2: Budget measures, pp. 108-109 and 112).

CRICOS registration for VET courses requirement removal

$0.2 million has been allocated in 2020-21 to remove the requirement for eligible supplementary and vocational education and training courses to be registered on the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS). This would allow education providers to offer additional courses to encourage international students to take up new training opportunities linked to their education, employability and welfare. The cost of this component of the 'JobMaker Plan - Deregulation Package' will be met from within the existing resources of the Department of Education, Skills and Employment (Budget paper no. 2: Budget measures, p. 63).

Digital Skills for Older Australians

An additional $28.3 million over four years from 2020-21 has been provided to extend the Be Connected program until 2023-24. The program supports Australians aged over 50 to gain the skills they need to participate in the digital economy (Budget paper no. 2: Budget measures, p. 153).

Women in Science, Technology, Engineering and Mathematics (STEM) Industry Cadetship program

$25.1 million over five years from 2020-21 (including $3 million in 2024-25) to establish a Women in Science, Technology, Engineering and Mathematics (STEM) Industry Cadetship program to support 500 women working in STEM industries to complete an Advanced Diploma through a combination of study and work-integrated learning experiences. The measure forms part of 'JobMaker Plan – Second Women’s Economic Security Package' (Budget paper no. 2: Budget measures, p. 68).

FEE-HELP and VET Student Loan fees exemption

The 'COVID-19 Response Package - higher education' includes exempting students from paying FEE-HELP and VET Student Loan fees for six months from 1 April 2020 to 30 September 2020, at a cost of $0.6 million over five years from 2019-20 in underlying cash balance terms (and $73.5 million in fiscal balance terms) (Budget paper no. 2: Budget measures, p. 226).