Apprenticeships and traineeships

Boosting Apprenticeship Commencements wage subsidy expansion

Under the 'Building Skills for the Future - Boosting Apprenticeship Commencements wage subsidy - expansion' budget measure, the Boosting Apprenticeship Commencements (BAC) program will receive an additional $2.7 billion over four years from 2020-21. The BAC program, announced in the 2020-21 Budget as part of the JobMaker plan and building on the July 2020 Economic and Fiscal Update measure 'COVID-19 Response Package - supporting apprentices and trainees' (2020-21 Budget paper no. 2: Budget measures, p. 77), provided a 50 per cent wage subsidy to support 100 000 new apprenticeships commencing in the period 5 October 2020 to 30 September 2021, but was fully subscribed within the first five months. The new funding includes $1.2 billion to uncap the program and extend the wage subsidy commencement period to 30 September 2021, as announced on 9 March 2021, and $1.5 billion to further extend the commencement period from 1 October 2021 to 31 March 2022 and support an evaluation of the program (Budget paper no. 2: Budget measures, p. 88; Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 16).

Simplifying apprenticeship pathways information

$12.1 million over four years from 2021-22 is allocated to simplify Australian apprenticeship pathways information, and to develop a single national digital apprenticeship portal. The measure will deliver a more consistent approach to apprenticeships and traineeships and improve mobility of the skilled workforce, and support the development and implementation of systems to better connect individuals, businesses and industry to wage subsidy and apprenticeship incentives information (Budget paper no. 2: Budget measures, p. 94; Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 15).

Additional Gateway Services for women

$2.6 million is provided for the Australian Apprenticeship Support Network to deliver 5000 additional Gateway Services to women and provide in-training support services for women commencing in non-traditional trade occupations. These services ensure that prospective apprentices are matched with apprenticeships or traineeship pathways suited to their skills and are supported to undertake their training (Budget paper no. 2: Budget measures, p. 89; Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 16).

Incentives for Australian Apprenticeships Program

The Incentives for Australian Apprenticeships Program will be delayed by a further three months. The program will commence on 1 October 2021, replacing the current Australian Apprenticeships Incentive Program (AAIP) with a simplified Australian Apprenticeships pathway, which will be easier for employers to access and navigate. The AAIP and Additional Identified Skills Shortage payments will also be extended to 30 September 2021 to ensure eligible apprentices continue to receive support throughout the deferral period and minimise disruption to apprentices and their employers (Budget paper no. 2: Budget measures, p. 89.)

Employment

Supporting skilled migrants to fill gaps in the workforce

$4.6 million is provided to make the remaining three Trades Recognition Australia (TRA) skills assessment pathway programs demand-driven and move to full cost recovery of TRA's services. TRA provides skills assessment services for migrants seeking to work in technical and trade occupations. This approach will enable the government to respond to skills shortages once the borders reopen, and migrants to fill employment gaps in a timely manner. In the 2019-20 budget (2019-20 Budget paper 2: budget measures, p. 71), $131.6 million over five years was allocated to streamline and strengthen the oversight of TRA of skills assessments related to migration, employment and licensing purposes, with the activities fully cost recovered by the collection of fees from individual applicants by TRA rather than through registered training organisations (RTOs) (Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 17).

National Careers Institute and Ambassador program

The National Careers Institute (NCI) and Ambassador program expenses are estimated at $13.348 million in 2021-22. The NCI provides careers information to support informed decisions about education, training, and career pathways (Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 73).

Supporting women's skills, training and career development

The 'Women's Economic Security Package' includes $12.2 million over two years to fund an additional round of the NCI’s Partnership Grants program to support projects that facilitate career opportunities and career pathways for women; $2.6 million over three years from 2021-22 to expand the Career Revive program to support more medium to large regional businesses to attract and retain women returning to work after a career break; and expanding the Mid-Career Checkpoint Program to Victoria, beyond existing pilots in Queensland and New South Wales, and expanding eligibility to include people who have been absent from work due to caring responsibilities for six months or more and existing workers at risk of unemployment, primarily targeting female dominated, COVID-19 affected industries. The Mid-Career Checkpoint Program will also include training grants of up to $3,000 to support skills and training needs to increase employability and support career advancement, with funding met from within the existing resources of the Department of Education, Skills, and Employment (Budget paper no. 2: Budget measures, pp. 81-82; Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 17).

New Employment Services Model

The New Employment Services Model (NESM) will replace the jobactive program from 2022. The NESM will introduce two pathways of support for job seekers. Digitally capable job seekers will be able to self-manage finding employment through Digital Services for 12 months, after which they will transition to Enhanced Services. Job seekers not in Digital Services will receive tailored and intensive case management support from Enhanced Services providers. Funding for this package includes $699.4 million over five years from 2020-21 to expand existing specialist services, including:

• $481.2 million over four years from 2021-22 for the Transition to Work program, to provide specialist employment services for young people aged 15 to 24. The program will be the dedicated youth employment service in the NESM, and will provide intensive, time-limited assistance to young people aged 15 to 24 years who are at risk of not transitioning into employment or further education. The service will continue to help disadvantaged young people by promoting work experience and training participation and providing intensive assistance to young people experiencing multiple barriers to achieving successful labour market participation.
• $7.6 million is allocated over two years to extend the NCI's 1800 CAREER Information Service, which supports young people aged 15 to 24, to 30 June 2023. The funding will also extend and expand the NCI's Partnership Grants Program to provide for projects that target the needs of young people.
• $129.8 million over four years from 2021-22 to streamline the New Business Assistance with the New Enterprise Incentive Scheme (NEIS) program under the NESM. The NEIS provides personalised support to help eligible Australians become self-employed business owners. The budget also includes $15.5 million over two years from 2020-21 for an additional 1000 places under the NEIS program and an additional 350 places under the Exploring Being My Own Boss Workshop program.

This package also includes efficiencies of $1.1 billion over four years from 2021-22 comprising $860.4 million through enabling job seekers to choose digital support services and $191.6 million by job seekers in Digital Services becoming eligible for income support from the date they complete a Job Plan and job seekers in Enhanced Services from the date of their first appointment with an employment services provider (Budget paper no. 2: Budget measures, pp. 92-93; Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, pp. 17-19).

New Remote Jobs Program

$111 million over five years from 2020-21 will be provided for quality servicing to Community Development Program (CDP) recipients who have lost their job due to the COVID-19 pandemic and develop a new Remote Jobs Program pilot in selected regions across Australia. The new program will replace the CDP and be co-designed with Indigenous Australians to support remote communities by targeting job creation and skills development. As part of this measure some mutual obligation requirements for CDP job seekers will be paused while the new program is being developed (Budget paper no. 2: Budget measures, p. 176).

Local Jobs Program expansion

$213.5 million over four years from 2021-22 to expand the Local Jobs Program to 51 employment regions (currently 25) and extend the program for three years. The Local Jobs Program supports tailored approaches to accelerate reskilling, upskilling and employment pathways in selected regions, supporting Australia's economic recovery from COVID-19 (Budget paper no. 4: Agency resourcing, p. 5).

Industry

National Skills Commission resourcing

The National Skills Commission (NSC) program expenses are estimated at $5.1 million for 2021-22, with an additional $6.665 million allocated over the forward estimates to 2024-25 (Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 73).

Industry Workforce Training

Industry Workforce Training, which supports industry engagement in the National Training System, has estimated program expenses of $40.025 million in 2021-22 (Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 73).

Industry Clusters establishment

The 'Stronger Support for Skills Reform' budget measure includes $149.2 million over four years from 2021-22 to establish up to 15 industry owned Skills Enterprises/Industry Clusters to deliver improved skills and workforce outcomes through collaboration with industry and to ensure that the vocational education and training (VET) system is responsive to industry and employer skills needs (Budget paper no. 2: Budget measures, p. 93; Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 15).

High level digital skills cadetships trials

$10.7 million is provided over three years from 2021-22 to support up to four industry-led trials to develop new and innovative pathways to increase the number of Australians with high level digital skills through cadetships. The cadetships will be in emerging and high technology digital fields, comprising formal and on-the-job training, and will be targeted at cohorts seeking to upskill or cross-skill to adapt to new digitally advanced employment opportunities (Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 17).

Securing Australia's recovery

Broader budget initiatives directed at VET-related industries and businesses are compiled in the fact sheets Securing Australia's recovery: creating jobs and rebuilding our economy, which includes arts, aviation and tourism, aged care, child care, construction, information technology and infrastructure investment, and Securing Australia's recovery: building a more secure and resilient Australia includes agriculture, the environment, electricity, gas and oil, manufacturing, recycling and waste management.

National Agreements

Total payments to the states and territories for skills and workforce development are estimated at $2 billion in 2021-22, comprising:

• National Skills and Workforce Development Specific Purposes Payment (SPP): $1.6 billion
• $339.1 million - to be matched by the states - towards the expanded $2 billion JobTrainer Fund
• National Partnerships: $104.9 million (Budget paper no. 3: Federal financial relations, p. 42).

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 2021-22 are: New South Wales $498.9 million, Victoria $411.4 million, Queensland $320.3 million, Western Australia $164 million, South Australia $108.4 million, Tasmania $33.3 million, Australian Capital Territory $26.4 million, and Northern Territory $14.9 million (Budget paper no. 3: Federal Financial Relations, p. 43).

The Australian Government will continue to negotiate a new National Skills Agreement with the states and territories to replace the National Agreement on Skills and Workforce Development. The key priorities for the Government for a new National Skills Agreement include increasing investment and transparency under a new funding model; improving access to and support for Foundation Skills; improving VET data collection, use and analysis; and harmonising and modernising apprenticeships to boost completion rates, support businesses, and improve labour mobility (Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 15).

National Partnerships

In 2021-22, 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 ($339.1 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 ($95.5 million), Victoria ($117.3 million), Queensland ($60.3 million), Western Australia ($31.1 million), South Australia ($20.7 million), Tasmania ($6.3 million), Australian Capital Territory ($5 million), and Northern Territory ($2.9 million).
• Revitalising TAFE campuses across Australia ($25 million) to improve vocational education infrastructure. For 2021-22, the funding is allocated to New South Wales ($5 million), Victoria ($5.7 million), Queensland ($4.2 million), Western Australia ($2 million), South Australia ($2.5 million), Tasmania ($5 million), and Australian Capital Territory ($0.6 million).
• Skilling Australians Fund ($75.3 million, to be matched by the states) - 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 ($40.2 million), Western Australia ($19.9 million), South Australia ($8.5 million), Tasmania ($2.5 million), Australian Capital Territory ($2.1 million), and Northern Territory ($2.1 million). The estimated total funding for 2021-22 has reduced by $60.5 million on the projection provided in the 2020-21 budget (p. 37) (Budget paper no. 3: Federal financial relations, pp. 43-45).

Regulation

Australian Skills Quality Authority resourcing

The Australian Skills Quality Authority (ASQA) estimates its total resourcing will be $64.464 millon, which includes a departmental appropriation of $41.892 million for the 2021-22 financial year (Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 175).

Fee relief budget measure extension

On 12 April 2020, the Government announced a package of measures designed to mitigate negative impacts of the COVID-19 pandemic on VET providers. Under these measures, it was announced that ASQA would waive fees and charges for some of its activities for the period 1 January 2020 to 30 June 2021, and reimburse payments made for the included fees and charges where invoices were issued on or after 1 January 2020, resulting in revenue estimates for 2020-21 of $0.9 million. In April 2021, the fee relief budget measure was extended for a further six months to 31 December 2021, reducing ASQA’s revenue estimate for 2021-22 by $14.7 million (Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 181).

Full cost recovery implementation date extension

ASQA was scheduled to move to full cost recovery from 1 July 2021. In March 2021, the Government extended the implementation date for full cost recovery by six months to 1 January 2022. This delay reduces ASQA's revenue estimate for 2021-22 by $6.2 million (Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 182).

ASQA's priorities for the year ahead

In 2021-22, ASQA will focus on: promoting a VET provider culture of self-assurance and continuous quality improvement; enhancing the engagement, co-design, communication and education components of our integrated regulatory approach, ensuring effective partnerships to improve our data, information and intelligence to identify and respond to risks to the delivery of quality VET; monitoring the performance of providers and ensuring a proportionate, appropriately targeted regulatory program; publishing enhanced public information about sector risks, areas of regulatory focus, and sector performance; establishing an evaluation framework to demonstrate regulatory impact and continuous improvement of sector outcomes over time; and implementing the Australian Government decision to introduce full cost recovery, in consultation with stakeholders (Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 174).

Training providers and programs

Extending and expanding the JobTrainer Fund

The JobTrainer Fund, signed up to by all jurisdictions under the Heads of Agreement for Skills Reform, will be expanded by an additional $500 million, to be matched by state and territory governments. The enrolment period will be extended to 31 December 2022, and eligibility will be expanded to deliver around 163,000 free or low-fee training places in additional areas of skills need, with around 33 800 of these places to support aged care skills needs and around 10 000 places for digital skills courses. This builds on the July 2020 Economic and Fiscal Update measure 'COVID-19 Response Package - JobTrainer Fund - establishment' (Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, pp. 15-16).

Indigenous Skills and Employment Program

The 'Indigenous Skills and Jobs Advancement' budget measure will provide $243.6 million over five years from 2020-21 to improve economic, social and education outcomes for Indigenous Australians. The measure includes $128.4 million over three years for a new Indigenous Skills and Employment Program, which will replace existing programs, including the Employment Parity Initiative, Vocational Training and Employment Centres, and Tailored Assistance Employment Grants. The lead entity for this measure is the National Indigenous Australians Agency (Budget paper no. 2: Budget measures, p. 173).

Boosting foundational and digital skills

The budget measure 'Stronger Support for Skills Reform' includes $23.6 million over four years from 2021-22 to support foundation skills, by uncapping the Skills for Education and Employment (SEE) program ($16.6 million), increasing project funding to accelerate the inclusion of digital skills training for job seekers in the program and providing additional funding for foundation skills policy development ($4 million), and leveraging the Reading Writing Hotline to promote the Foundation Skills Guarantee ($3 million). This builds on the 2020-21 budget (2020-21 Budget paper no. 2: Budget measures, p. 80) allocation of $52.3 million over three years from 2020-21 to expand the SEE program to support additional places for basic foundational language, literacy and numeracy skills training and undertake a scoping study to inform development of a new national framework for foundational skills (Budget paper no. 2: Budget measures, p. 94; Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 16).

National Training Register

'Stronger Support for Skills Reform' also includes $30.9 million over four years from 2021-22 to deliver a new National Training Register by rebuilding the training.gov.au platform to support work with the states and territories to reform qualifications design (Portfolio budget statements 2021-22: Budget related paper no. 1.4: Education, Skills and Employment Portfolio, p. 15).

International education

$53.6 million of targeted support is allocated for international education providers most affected by border closures to ensure the diversity of Australia's education system is maintained and providers can respond to new opportunities. The support includes grants of up to $150 000 to invest in infrastructure, expertise and new teaching solutions. $26.1 million for an additional 5000 Commonwealth supported short course places in 2021 is also allocated to enable non-university higher education providers to attract more domestic students (Securing Australia's recovery: creating jobs and rebuilding our economy, p. 29).