Apprenticeships and traineeships

Apprentice and trainee wages payroll tax exemption

The apprentice and trainee wages payroll tax exemption was discontinued for 2023-24. Expenditure was $3 million in 2022-23, reducing from $9.9 million in 2021-22. The exemption was available for wages paid to apprentices and trainees who commenced a relevant training contract between 10 November 2020 and 30 June 2022 (Budget paper 3: Budget statement, p. 173; RevenueSA: Apprentices and trainees).

Skills - Born to Build program

$75 000 per annum for three years from 2023-24 is allocated to extend the Master Builders Born to Build program to the Adelaide Footy League to support the recruitment of construction apprentices. The program promotes a variety of career pathways and options within the building and construction industry and aims to deliver the next generation of tradies by providing apprenticeship opportunities to South Australians who want to earn a wage while learning a trade (Budget paper 5: Budget measures statement, p. 28).

Skills - Group Training Organisations - supporting apprentices and trainees

$1.04 million per annum for four years ($4.2 million) from 2023-24 is provided to continue the Group Training Organisation (GTO) Boost program for adult apprentices or trainees aged 21 years or above upon commencement. The program is intended to enable GTOs to offer host employers a charge out rate reduction of $100 per week per adult apprentice or trainee, for a period of 12 months, for up to 200 new training contract commencements per annum. The continuation of the program will support mature age apprentices to make a successful transition to the skilled workforce, including in areas where there are skills shortages (Budget paper 5: Budget measures statement, p. 28; Budget paper 3: Budget statement, p. 5).

Employment

Work Ready Release Ready Plus

$1.5 million per annum (indexed) from 2023-24 is provided to build on the success of the Work Ready Release Ready (WRRR) Program by increasing access to the program for more participants. The reoffending rate for WRRR participants was evaluated to be significantly lower than the national average. Additionally, the evaluation found that WRRR participants were 11.5 per cent more likely to gain employment post release compared to non-participants. The program provides rehabilitation and reintegration support including workforce participation upon release from custody. The initiative aligns with the government's target to reduce reoffending 20 per cent by 2026 (20by26) (Budget paper 5: Budget measures statement, p. 21).

Industry

International education recovery

This initiative provides $2 million per annum over three years to 2025-26 for StudyAdelaide to attract and retain high quality international students to drive sustained growth following the COVID-19 pandemic. The initiative will enhance marketing programs and deliver targeted industry connection and employment readiness programs to connect skilled graduates to employers to retain them in South Australia's workforce after study (Budget paper 5: Budget measures statement, pp. 51-52).

Small Business Strategy

$400 000 is allocated in 2023-24, increasing to $2.6 million per annum (indexed) from 2026-27, to deliver the South Australian Small Business Strategy. The strategy has been developed following extensive engagement with small businesses and other stakeholders. It seeks to increase the skills, capability and capacity of small business owners, and support them to create jobs and build the economy (Budget paper 5: Budget measures statement, p. 52).

National Agreements

The total Commonwealth Payments for specific purposes and National Partnership Payments to South Australia for Skills and Workforce Development are estimated at $126.2 million for 2023-24.

National Skills and Workforce Development Specific Purpose Payment

South Australia has been allocated $116.1 million under the National Agreement for Skills and Workforce Development for 2023-24 (Budget paper 3: Budget statement, p. 46).

National Partnership Payments

The budget estimate for National Partnership Payments is $10.1 million in 2023-24 (Budget paper 3: Budget statement, p. 46), which the 2023-24 Australian Government budget shows is for the Fee-free TAFE 12-Month Skills Agreement and TAFE Technology Fund (Budget paper no. 3: Federal financial relations, p. 47).

Training providers and programs

Closing the Gap - increased resourcing

$1.1 million per annum (indexed) is provided from 2023-24 towards South Australia meeting its partnership commitments under the National Agreement on Closing the Gap. The initiative includes resourcing to the South Australian Aboriginal Community Controlled Organisation Network (SAACCON), as the state's peak body, as well as to Aboriginal Affairs and Reconciliation to help deliver partnership commitments. The National Agreement encompasses four priority reform areas which cover 17 targets focused on life expectancy, health and wellbeing, education, employment, justice, safety, housing, land and waters, and languages (Budget paper 5: Budget measures statement, p. 13).

Five new technical colleges

$175 million of investing expenditure was allocated over four years ($15 million in 2022-23) in the 2022-23 budget (page 25) for five new technical colleges, including two in regional South Australia at Port Augusta and Mount Gambier and three across the metropolitan area. The project is expected to be completed in the June 2026 quarter, and $55.2 million is allocated in 2023-24. Construction of the Findon Technical College is expected to be completed for students in year 10 to 12 to learn skills in the areas of advanced manufacturing and engineering, early childhood and education, health and social support from the beginning of the 2024 school year (Budget paper 4: Agency statements volume 1, pp. 181 and 187).

Re-alignment of revenue targets

This initiative provides revenue relief of $12.2 million ($2.279 million in 2023-24) over four years from 2023-24 in response to lower forecasts for external revenue growth. This reflects developments in the skills system including the introduction of fee free training in priority courses. TAFE SA is still expected to pursue strong growth in external revenue over the forward estimates (Budget paper 5: Budget measures statement, p. 69).

Regional Skills Development Fund

$1.5 million will be provided in 2023-24 and $2.9 million per annum from 2024-25 ($10.2 million) to establish a Regional Skills Development Fund that will ensure TAFE SA can offer more courses in rural and regional South Australia aligned with the needs of local industry and government priorities (Budget paper 5: Budget measures statement, p. 69; Budget paper 3: Budget statement, p. 5).

Skills - equipment and capital grants for TAFE SA, not-for-profit and industry-based training providers

$3 million per annum is allocated for three years from 2023-24 ($9 million) for equipment and capital grants to support TAFE SA, not-for-profit and industry-based providers to invest in contemporary infrastructure, equipment and technology to deliver higher quality, industry relevant training aligned with areas of skill demand and economic priorities (Budget paper 5: Budget measures statement, p. 28; Budget paper 3: Budget statement, p. 5).

Skills - targeted subsidy increases for not-for-profit and industry-based training providers

$7 million per annum will be provided for four years from 2023-24 ($28 million) to address current and emerging skill shortages and support quality training through a targeted increase in the training subsidy for high quality not-for-profit and industry-based training providers aligned with areas of skill demand and economic priorities (Budget paper 5: Budget measures statement, p. 28; Budget paper 3: Budget statement, p. 5).

Supporting Tauondi College

This initiative provides $5.6 million ($1.8 million in 2023-24) over four years from 2023-24 for Tauondi College to support its strong role within the community as a hub and training organisation and achievement of Tauondi's strategic and development goals for sustainability and growth (Budget paper 5: Budget measures statement, p. 29).

Department for Education - Skills SA

The Department for Education provides a range of integrated education, training and child development services to benefit children, young people and families. The department helps students, businesses, and industry to increase skills and participate in vocational education and training (VET) through Skills SA (Budget paper 4: Agency statements volume 1, p. 178).

The objective of Program 3: Skills SA is to ensure that South Australians have the skills and training to participate in the workforce, secure jobs and contribute to a growing economy by: aligning the investment of public funds with identified skills and training needs and economic priorities; engaging with business, peak bodies, community and training providers to build the skills of the workforce through responsive services with a customer focus; providing information and support services to learners and workers about skills, and training pathways and opportunities; regulating the apprenticeship and traineeship system to ensure compliance with the South Australian Skills Act 2008; and supporting a responsive and high-quality VET system. The net cost of services for Program 3: Skills SA is estimated to be $370.539 million in 2023-24 (Budget paper 4: Agency statements volume 1, pp. 193-194).