Apprenticeships and traineeships

Payroll tax exemption extension

The 2021-22 budget extends the 12 month payroll tax exemption for wages paid to eligible trainees and apprentices who commence a relevant training contract. The exemption applies up to 30 June 2022 for 12 months from the contract commencement date (Budget paper 1: Budget overview, p. 7; Budget paper 3: Budget statement, p. 6).

Expiring National Partnership Agreements

The operating expenses of the Innovation and Skills agency is projected to decrease by $143 million over the forward estimates primarily due to the completion of the Skilling Australians and JobTrainer National Partnership Agreements in 2022 (Budget paper 3: Budget statement, p. 27).

Employment

COVID-19 Support Fund

In response to the COVID-19 pandemic and its significant impact on local businesses, community organisations, industry sectors and jobs, the South Australian Government announced the establishment of two funds to support businesses, jobs and community organisations: the Business and Jobs Support Fund and the Community and Jobs Support Fund. With the vaccine roll-out now commencing, the funds have been combined and renamed to create the COVID-19 Support Fund. Capacity of $18.2 million remains in the Fund. The Fund will continue to be available to support businesses, jobs and community organisations impacted by COVID-19 restrictions. The state contribution of the JobTrainer extension is funded from the COVID-19 Support Fund (Budget paper 5: Budget measures statement, pp. 3 and 66).

Industry

Jobs and Economic Growth Fund

The Economic and Business Growth Fund was established as part of the 2018-19 Budget to promote economic growth in South Australia by encouraging growth of existing industries, developing new industries, building international connections, and attracting foreign and national direct investment. From 1 July 2021, the Fund will be renamed the Jobs and Economic Growth Fund and will have funding capacity of $200 million over four years to focus on supporting initiatives that create long-term sustainable jobs and economic growth. The Jobs and Economic Growth Fund will include further funding of $123.6 million in addition to unallocated funding of $76.4 million from the Economic and Business Growth Fund (Budget paper 5: Budget measures statement, p. 8).

An additional ten measures totalling $36.9 million will be supported through the Jobs and Economic Growth Fund, including: an artificial intelligence and health hub; the continuation of the Defence Innovation Partnership; an extension of the Defence and Space Landing Pad; a national test mine and innovation centre; a plant-based food incubator; SASAT1 Space Services Mission Demonstrator; seaweed - South Australia's next big marine industry; spectral geoscience - HyLogger 4 technology; the University of South Australia (UniSA) Australian Centre for Business Growth; and wine export recovery and expansion (Budget paper 3: Budget statement, pp. 6-7; Budget paper 5: Budget measures statement, pp. 20-21, 34-35, 65-67 and 77-78).

National Agreements

The total Commonwealth Payments for specific purposes and National Partnership Payments to South Australia for Skills and Workforce Development are estimated at $140 million for 2021-22.

National Skills and Workforce Development Specific Purpose Payment

South Australia has been allocated $108.4 million under the National Agreement for Skills and Workforce Development for 2021-22 (Budget paper 3: Budget statement, p. 49).

National Partnership Payments

The budget estimate for National Partnership Payments is $31.6 million in 2021-22 (Budget paper 3: Budget statement, p. 49).

The budget also allocates $68.9 million over two years ($34.5 million of which will be provided by the South Australian Government) to extend the existing JobTrainer Fund National Partnership Agreement with the Commonwealth until June 2022 (Budget paper no. 1: Budget overview, p. 14; Budget paper 3: Budget statement, pp. 5-6).

The Australian Government budget estimates in 2021-22 South Australia may receive: Skilling Australians Fund - $8.5 million, Revitalising TAFE campuses across Australia - $2.5 million, and JobTrainer Fund - $20.7 million (Australian Government Budget paper no. 3: Federal financial relations, pp. 42-45).

Training providers and programs

Department for Innovation and Skills funding

The Department for Innovation and Skills supports the Government of South Australia's Growth State agenda by ensuring that the growth plans for priority industry sectors in South Australia are underpinned by research,development and innovation capability, through a skilled workforce and skilled migration. The estimated net cost of services for 'Program 2: Skills' for 2021-22 is $368.179 million. The targets for 2021-22 include enacting the South Australian Skills Act 2008 from 1 July 2021 to amend the Training and Skills Development Act 2008 and establish the South Australian Skills Commission (Budget paper 4: Agency statements volume 3, pp. 167 and 174).

JobTrainer National Partnership Agreement extension

The JobTrainer National Partnership Agreement extension initiative provides an additional $68.9 million over two years ($41.4 million in 2021-22 and $27.6 million in 2022-23) for an extension of the existing JobTrainer Fund National Partnership Agreement with the Commonwealth Government until June 2022, comprising funding of $34.5 million from the Commonwealth, with matched funding from the state government. The state contribution is funded from the COVID-19 Support Fund, which is the combined Business and Jobs Support and the Community and Jobs Support Funds established in the prior year budget, and therefore has zero budget implications for 2021-22 (Budget paper 3: Budget statement, pp. 5-6).

TAFE SA additional funding

Additional resources of $215.5 million have been provided to TAFE SA in response to lower forecasts for external revenue growth and delays in the identification and achievement of efficiency measures. Funding is also provided to TAFE SA to undertake a program of system and process improvements. This will deliver efficiencies that will support its move towards long term sustainability and a contemporary delivery model (Budget paper 1: Budget overview, p. 14; Budget paper 3: Budget statement, p. 7).

Contemporary digital student learning systems and support services

The Contemporary digital student learning systems and support services budget initiative provides a total investment of $12.7 million over two years ($4.2 million operating expenditure and $8.5 million investing expenditure) funded from prioritising TAFE SA's investing program, to undertake a program of system and process improvements across TAFE SA. The program will deliver improved technology across regional infrastructure to enable campuses to be contemporary, digitally enabled 'student learning hubs'. The program will also support the digitisation of education and training delivery and student support to improve access and choice for all South Australian students. This will include the redevelopment of training product to support digitised blended delivery using contemporary and future technologies. The total 2021-22 investment program for TAFE SA is $21.3 million and includes the existing Revitalising TAFE SA Campus project with funding of nearly $4 million for 2021-22. Commonwealth Government funding for the Revitalising TAFE SA campuses project in 2020-21 was $2 million (Budget paper 5: Budget measures statement, p. 85; Budget paper 4: Agency statements volume 4, pp. 81 and 85).