Apprenticeships and traineeships

Australian Skills Guarantee - implementation

$8.6 million is allocated over four years from 2023-24 (and $1.5 million per year ongoing) to implement the Australian Skills Guarantee to ensure one in 10 workers on major Australian Government-funded projects is an apprentice, trainee or paid cadet. It will apply from 1 July 2024 to projects with contracts valued at $10 million or more in the construction and information and communications technology (ICT) sectors and will include sub-targets for women. More ambitious targets will be set for flagship construction projects with contracts valued at $100 million or more. For ICT projects, initial targets for apprentices, trainees, paid cadets, and the targets for women will be negotiated with suppliers on a project-by-project basis, with targets based on workforce information provided during the tender process (Budget paper no. 2: Budget measures, pp. 104-105).

Targeted Support for Apprenticeships

Additional funding of $54.3 million over five years from 2022-23 is provided to introduce a new non-financial support model for Australian Apprenticeships from 1 July 2024. The model will redesign and refocus key support services currently delivered by the Australian Apprenticeship Support Network to increase apprenticeship completion rates and the diversity of the apprentice workforce.

Grant funding of $5 million over three years from 2024-25 will be provided to organisations with appropriate expertise in supporting women in the workplace, to further support women in historically male dominated trade apprenticeships. The new model will also provide support to women who commence their non-traditional trade apprenticeships prior to 1 July 2024 during their transition to new service arrangements.

This measure delivers on the Government's commitment from the Jobs and Skills Summit to explore options to improve the apprenticeship support system and drive-up completions. The cost of this measure will be offset by savings achieved from streamlining Australian Apprenticeships Incentive System service arrangements by transferring the processing of wage subsidy claims from Services Australia to the Department of Employment and Workplace Relations and providers (Budget paper no. 2: Budget measures, pp. 109-110).

Employment

Boosting Employment Support

$26.3 million will be provided over five years from 2022-23 to boost employment services for young Australians in the care economy, continue pre-employment services for First Nations people who are incarcerated, trial a new regional employment service approach and support workers and communities through enhancements to the Local Jobs Program. The funding includes:

• $15.2 million over two years from 2022-23 to support the establishment of the Y Careers Agency to provide young people with employment opportunities in the care economy, including the early childhood education and care, disability and aged care sectors
• $5.7 million over two years from 2022-23 to extend the Time to Work Employment Service program (non-remote) for 12 months to provide continued pre-employment services for First Nations people who are incarcerated
• $5.6 million over five years from 2022-23 to support continuity of employment services in the Broome employment region and ensure future services are responsive to the needs of the local community
• $0.2 million in efficiencies over two years from 2023-24 through enhancements to the Local Jobs program to support workers and communities to adjust to dynamic economic and labour market conditions.

The Government will also abolish the ParentsNext program from 1 July 2024 and develop a replacement voluntary program, with interim changes to be considered as soon as possible to move ParentsNext to voluntary participation. Y Careers delivers on the Government's election commitment as published in the Plan for a Better Future. This measure will be offset by savings from the 2023-24 Budget measure titled Employment and Workplace Relations Portfolio - reprioritisation (Budget paper no. 2: Budget measures, p. 105).

National Careers Institute - continuation

The Government will provide additional funding of $5.1 million in 2023-24 to continue the functions of the National Careers Institute, and to evaluate its role in supporting Australians to access careers information. The funding will ensure the Your Career website is based on the latest labour market data and will continue the delivery of the School Leavers Information Kit to enable young people to make informed decisions about their education, employment, and training pathways. The cost of this measure will be met from savings identified in the 2023-24 Budget measure titled Employment and Workplace Relations - reprioritisation (Budget paper no. 2: Budget measures, p. 108).

Skills Assessments Pilots

The Government funds three Skills Assessment Pilots (Pilots) to provide onshore migrants with fast-tracked skills assessments, free employability assessments, and advice and access to further training to improve employment prospects. The Government is re-scoping two of the three Pilots to improve uptake and maximise their success. This will improve employment outcomes for migrants in priority occupations and will address critical skill shortages. The adjustments include: extending Pilots Two and Three to 29 February 2024; opening Pilots Two and Three to all occupations eligible for migration in National Shortage or Regional Shortage on the 2022 Skills Priority List; and expanding Pilot Two eligibility to include secondary entrants of skilled visa holders (Portfolio budget statements 2023-24: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 16; Skills Assessment Pilots).

Industry

Employment and Workplace Relations - reprioritisation

$212.9 million over five years from 2022-23 (and $41.4 million per year ongoing) across the Employment and Workplace Relations portfolio will be redirected to fund other portfolio policy priorities. Savings over four years from 2023-24 include:

• $111.6 million by reducing place allocations for the Self-Employment Assistance Small Business Coaching program to reflect utilisation of places more accurately
• $27.5 million by temporarily reducing uncommitted Industry Workforce Training program funding
• $22.8 million by ceasing the Entrepreneurship Facilitators Program from 1 July 2023
• $20.0 million by temporarily reducing uncommitted funding to support Job and Skills Councils (formerly known as Industry Clusters)
• $15.8 million by reducing the departmental operating funding of the Office of the Fair Work Ombudsman by 2.5 per cent (Budget paper no. 2: Budget measures, p. 106).

Extension of the Defence Industry Pathways Program

$11.4 million will be provided over three years from 2023-24 to extend the Defence Industry Pathways Program within the Western Australian shipbuilding sector. The Program provides 12-month skills development opportunities through which participants gain an understanding of defence industry and obtain a nationally accredited Certificate III qualification. The cost of this measure will be met from within the existing resourcing of the Department of Defence (Budget paper no. 2: Budget measures, p. 93).

Nuclear-Powered Submarine Program - initial implementation

This $4.5 billion (over 10 years from 2023-24) initiative includes $3.9 million over two years from 2023-24 for the Department of Employment and Workplace Relations to establish a dedicated taskforce to support the development and delivery of skills and training initiatives for the nuclear-powered submarine program. The Department of Education will also receive $1.1 million over two years from 2023-24 to support the development and delivery of education, skills and training initiatives.

Australian Naval Infrastructure Pty Ltd will also be provided with an equity injection over five years from 2023-24 to commence early construction and design works for a submarine construction yard and to design the Skills and Training Academy, in South Australia. The financial implications of this component of the measure are not for publication (nfp) due to commercial sensitivities (Budget paper no. 2: Budget measures, pp. 95-96).

Safe and Fair Workplaces

The Government will provide $27.4 million over 4 years from 2023-24 (and $1.1 million per year ongoing) to improve the safety and fairness of workplaces and continue detailed consultation with key industries. The funding includes the three initiatives described below: National Construction Industry Forum, Workplace support, and Commonwealth Health and Safety Representatives support (Budget paper no. 2: Budget measures, p. 108).

National Construction Industry Forum

$4.4 million is allocated over four years to support the establishment of the National Construction Industry Forum, which was legislated as part of the Secure Jobs, Better Pay Act and commences on 1 July 2023.

The Forum arose out of the 2022 Jobs and Skills Summit and will provide advice to Government on tackling key challenges facing the building and construction industry by encouraging tripartite collaboration on issues such as safety, culture, skills and training, productivity, and gender equity (Portfolio budget statements 2023-24: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 17; Budget paper no. 2: Budget measures, p. 108).

Workplace support

$20 million over two years from 2023-24 will be provided to the Productivity, Education and Training Fund grant program, to support eligible employer and worker representative organisations to engage with workplace reforms as they progress. It will also allow them to implement practical education and other activities to embed new laws in Australian workplaces (Budget paper no. 2: Budget measures, p. 108; Portfolio budget statements 2023-24: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 16).

Commonwealth Health and Safety Representatives support

To support recent amendments to the Work Health and Safety Regulations 2011 on managing psychosocial hazards at work, $2 million over two years from 2023-24 is committed to develop a targeted training package on workplace psychosocial hazards for organisations that train health and safety representatives in the Commonwealth jurisdiction (Budget paper no. 2: Budget measures, p. 108; Portfolio budget statements 2023-24: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 17).

National Agreements

In the 2023-24 budget, the Australian Government will provide funding of $1.9 billion (rounded) to support state skills and workforce development services, including:

• $1.7 billion through the National Skills and Workforce Development Specific Purpose Payment (SPP)
• $230.2 million through other National Partnership payments (Budget paper no. 3: Federal financial relations, p. 46).

National Skills and Workforce Development Specific Purpose Payment (SPP)

The National Agreement for Skills and Workforce Development (NASWD) 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 the NASWD.

The allocations to the states and territories for 2023-24 are: New South Wales $522.1 million, Victoria $428 million, Queensland $342.6 million, Western Australia $179.3 million, South Australia $116.1 million, Tasmania $36.3 million, Australian Capital Territory $29.4 million, and Northern Territory $16 million (Budget paper no. 3: Federal financial relations, p. 46).

National Partnerships

The funding of $230.2 million provided through National Partnership and Project payments in 2023-24 comprises:

• Fee-free TAFE 12-Month Skills Agreement (including the TAFE Technology Fund) - the Australian Government is providing $550.1 million for the 12-Month Skills Agreement, including $493.3 million for fee-free TAFE places, to be matched by the states. This Agreement also includes $6.8 million from the Australian Government to improve critical data infrastructure and $50.0 million for a TAFE Technology Fund, to improve workshops, laboratories, and IT facilities.
  • Funding of $163.3 million is available within the 2023-24 budget period. The estimates for the states and territories are: New South Wales $46 million, Victoria $37.5 million, Queensland $30.2 million, Western Australia $16.4 million, South Australia $10.1 million, Tasmania $3.6 million, Australian Capital Territory $2.6 million, and Northern Territory $1.6 million.
• Fee-free TAFE from 2024 ($66.9 million in 2023-24). In addition to the 12-Month Skills Agreement, the Australian Government will provide funds to the states to enable 300 000 TAFE and vocational education places to become fee-free from 2024. The allocation of funding and places will be subject to further discussions with the states (Budget paper no. 3: Federal financial relations, pp. 47-48).

National Skills Agreement

The Government is working in partnership with states and territories on a five-year National Skills Agreement (NSA) to be in place by January 2024. Negotiations towards the new NSA are guided by principles agreed by National Cabinet on 31 August 2022, prior to the Jobs and Skills Summit, and the additional priority of gender equality agreed by National Cabinet on 28 April 2023. The Government will invest up to $4.1 billion over five years in a new NSA with states and territories. This comprises $3.7 billion provisioned in the Contingency Reserve along with over $400 million to support 300 000 TAFE and VET places to become fee-free, provided for in the 2022-23 October Budget (Portfolio budget statements 2023-24: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 14).

Extension of National Skills Agreement Negotiation Resourcing

$5.5 million in 2023-24 is available to continue supporting negotiations on a long-term skills funding agreement with the states and territories (Budget paper no. 2: Budget measures, p. 107).

Training providers and programs

Adult Migrant English Program - improved delivery model

An improved delivery model for the Adult Migrant English Program (AMEP) will be introduced from 1 January 2025 within existing funding, to improve English language, employment, and settlement outcomes for migrants by providing flexible tuition options, introducing a national curriculum, supporting professional development for teachers, and enhancing client support and performance management (Budget paper no. 2: Budget measures, p. 155).

Defence skills and workforce taskforce

Funding of $3.9 million over two years has been allocated to establish a defence vocational skills taskforce within the Department of Employment and Workplace Relations. The taskforce will work in partnership with the Departments of Defence and Education, industry, Jobs and Skills Councils and state and territory governments to ensure Australia is able to develop the workforce required to shape our sovereign industrial base and support the delivery of Australia's nuclear-powered submarine program (Portfolio budget statements 2023-24: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 16).

Employment and Workplace Relations - reprioritisation

$212.9 million over five years from 2022-23 (and $41.4 million per year ongoing) across the Employment and Workplace Relations portfolio will be redirected to fund other portfolio policy priorities. Savings over two years include:

• $10.4 million over two years from 2022-23 by not proceeding with the Accelerating Australian Apprenticeships Pilot program
• $3.9 million over two years from 2022-23 by rescoping the Skills Assessments Pilots to align with current demand trends.

$1.1 million will also be saved in 2023-24 by ceasing the Career Revive program on 30 June 2023 (Budget paper no. 2: Budget measures, p. 106).

Foundation Skills Programs - redesign and pilot extension

The Government is redesigning the Skills for Education and Employment (SEE) program to provide more pathways for Australians to access training to improve their language, literacy, numeracy and digital (LLND) skills. The redesigned program will commence from 1 July 2024. This measure delivers on the Government's commitment from the Jobs and Skills Summit to reinvigorate foundation skills programs to support workers and vulnerable Australians to gain secure employment.

The redesigned program will expand eligibility to those who are not registered job seekers, and will be delivered through a mix of national and local solutions to improve access and delivery. This will include a specific focus on First Nations people with place-based, whole of community projects designed to meet community language, literacy, numeracy, and digital needs, and delivered through First Nations organisations in partnership with TAFEs and other registered training organisations, or adult and community education sector providers.

$3.5 million will also be provided over two years from 2022-23 to extend the Foundation Skills for Your Future Remote Community Pilots by 12 months to 30 June 2024 to align with the commencement of the redesigned program. The cost of this measure will be met from within the existing resourcing of the Foundation Skills for Your Future program and the SEE program (Budget paper no. 2: Budget measures, p. 107).

Investment in Sport

This budget measure, administered by the Health and Aged Care portfolio, includes $3.3 million in 2023-24 to continue Surf Life Saving Australia's vocational education and training support for Australia's surf lifesaving volunteers (Budget paper no. 2: Budget measures, p. 137).

Skills Development and Access to Training expenses

Annual administered expenses estimated for 2023-24 under 'Sub-program 2.1.1 - Skills Development' and 'Sub-program 2.1.2 - Access to Training' include:

• Australian Apprenticeship Support Network - $246.392 million
• Australian Apprenticeships Incentives Program - $678.16 million
• Australian Apprenticeships Incentives System - $682.452 million
• Migrant Skills Incentive - $7.251 million
• Skills Checkpoint for Older Workers Program - $7.657 million
  • the linked program 'Skills and Training Incentive', which is included in 'Program 1.1: Employment Services' (p. 32), has estimated annual expenses of $17.382 million in 2023-24
• Skills for Education and Employment - $103.979 million
• Foundation Skills for Your Future Program - $8.759 million
• Foundation Skills for Your Future - Remote Community Pilots - $3.047 million.

The total component 2.1.1 expenses for 2023-24, including the Special Appropriation for Trade Support Loans ($97.176 million) are estimated to be around $1.7 billion, and $115.785 million for component 2.1.2 Portfolio budget statements 2023-24: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 42).

For more information about these initiatives, see the VET Knowledge Bank Timeline of Australian VET policy initiatives 1998-2023.

VET Student Loans IT system

Funding of $42.2 million over four years has been allocated to develop a modern, fit-for-purpose VET Student Loans IT system which will enable the timely transfer of student loan records to the Australian Taxation Office and correct payments to providers. This measure will deliver a fully integrated, secure system that provides a single source of data and is flexible and scalable to meet the evolving needs of the VET Student Loans program (Portfolio budget statements 2023-24: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 15).