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Policy initiatives > Budget highlights > Tasmania 2020-21
The 2020-21 state budget was released by the Gutwein Liberal Government on 12 November 2020. Budget highlights relating to skills and training are provided below. Direct links to relevant budget papers are provided for quick and easy access.
The Tasmanian budget is typically delivered in May. The 2018-19 budget was handed down in June as the state election was held in March 2018, and the 2020-21 budget was delayed until November due to the coronavirus (COVID-19) pandemic. The 2020-21 budget has a key focus on the continuation of support to the Tasmanian community to support its recovery from the COVID-19 pandemic. This includes the implementation of the recommendations made in the interim report released by the Premier's Economic and Social Recovery Advisory Council (PESRAC) on 20 July 2020.
$2.1 million was committed to extend the Targeted Small Business Grant Program for Apprentices and Trainees as part of the response to the COVID-19 pandemic. Funding of $1.3 million will be allocated in 2020-21 to continue to provide a subsidy to small businesses that employ new apprentices and trainees in the building and construction, tourism, hospitality and manufacturing sectors. The program provides support to small business employers in eligible target industries that are not entitled to make a claim under the Payroll Tax Rebate Scheme (Government services: Budget paper no. 2: Volume 1, p. 300).
$5.4 million will be provided in 2021-22 and 2022-23 to support the expansion of the Small Business Grant for Apprentices and Trainees Program to provide a subsidy to all small businesses who employ a new apprentice or trainee during the period 1 January 2021 to 30 June 2022. The program provides support to small business employers who are not entitled to claim the Payroll Tax Rebate (Government services: Budget paper no. 2: Volume 1, p. 298).
The Payroll Tax Rebate for apprentices, trainees and youth employees provides a payroll tax rebate for two years from the date that apprentices and trainees are employed, and one year from the date that youth employees are employed, where they were employed between 1 July 2017 and 30 June 2019. A targeted Payroll Tax Rebate will continue for new apprentices and trainees employed in specific industries between 1 July 2019 and 31 December 2020 and a broader Payroll Tax Rebate will be available for new apprentices and trainees employed in all industries. Extending the Payroll Tax Rebate scheme across all industry areas as it relates to:
and the associated Targeted Small Business Grant Program has an estimated cost of $22 million. This measure addresses one of the recommendations of the PESRAC interim report (Government services: Budget paper no. 2: Volume 1, p. 109 and 113; Government services: Budget paper no. 2: Volume 1, pp. 5 and 85).
The Payroll Tax Rebate for apprentices, trainees and youth employees provides a payroll tax rebate one year from the date that youth employees are employed, where they were employed between 1 July 2017 and 30 June 2019. The Payroll Tax Rebate will continue for new youth employees (persons aged 24 years and under) employed between 1 April 2020 and 30 June 2022. The Youth Employment Scheme is allocated $280 000 in 2020-21. This measure addresses one of the recommendations of the PESRAC interim report (Government services: Budget paper no. 2: Volume 1, p. 109 and 113).
Funding of $1.3 million is provided over two years for the Glenorchy Jobs Hub to assist local business owners to meet their workforce demands, and help jobseekers into employment (Government services: Budget paper no. 2: Volume 1, p. 227).
$470 000 over two years is allocated to support the Hamlet Employability Program, which provides practical work experience and job readiness training in hospitality to Tasmanians facing multiple barriers to accessing education, training and employment (Government services: Budget paper no. 2: Volume 2, p. 227).
$300 000 will be provided in 2020-21 and $650 000 in 2021-22 to extend the successful Sorell Employment model to continue to deliver services assisting local jobseekers into employment in South East Tasmania (Government services: Budget paper no. 2: Volume 1, p. 227).
$420 000 is allocated over two years to Workskills Inc.'s Troublesmiths Employment Program to assist the delivery of the Troublesmiths employment-focused social enterprise for young people aged 15 to 24 years facing multiple barriers to accessing education, training and employment (Government services: Budget paper no. 2: Volume 1, p. 227).
Funding of $500 000 will be provided in 2020-21 to peak industry bodies to assist their sectors with recovery from the impacts of the COVID-19 pandemic. Peaks will be able to apply for support from the Peak Body Support Fund for recovery projects that underpin and enhance recovery or support mental health and wellbeing initiatives (Government services: Budget paper no. 2: Volume 1, p. 299).
The Small Business Sustainability and Recovery Assistance Package provides funding of $20 million in 2020-21 to assist small businesses across a number of sectors to sustain, recover, re-open, build capacity, resilience and innovate in light of the impacts of the COVID-19 pandemic. The assistance package includes support for small businesses that are heavily reliant on the visitor economy and continue to be directly or indirectly impacted by border closures or public health restrictions. This measure includes funding for the Digital Ready for Business Program (Government services: Budget paper no. 2: Volume 1, p. 300).
The Digital Ready for Business Program measure allocates $50 000 in 2020-21 to continue to support small business by providing targeted assistance and advice to support and improve their participation in the digital economy. The program is delivered through three core elements of seminars, coaching sessions and a content-rich website. A further $500 000 will also be provided in 2020-21 as part of the Small Business Sustainability and Recovery Assistance Package (Government services: Budget paper no. 2: Volume 1, p. 298).
In the 2020-21 Budget and Forward Estimates, the total equity funding allocated to infrastructure investment is $776.9 million. When combined with the General Government Sector agency infrastructure funding, this takes the total investment by the State and Australian Governments in infrastructure over this period to $4.7 billion (Government services: Budget paper no. 2: Volume 1, pp. 101-118).
In 2020-21, the Australian Government will provide estimated funding of $58.4 million to support the state's skills and workforce development services through the National Skills and Workforce Development Specific Purpose Payment (SPP) and National Partnership and Project payments.
Funding from the Commonwealth Government under the National Agreement for Skills and Workforce Development is estimated at $32.5 million (The budget: Budget paper no. 1, p. 82).
The total estimated National Partnership Payments for 2020-21 is $25.9 million, comprising:
'Other' includes funding for Infection Control Training (The budget: Budget paper no. 1, p. 85). The Project Agreement for the National Infection Control Training Fund, signed by the Minister for Education and Training on 15 June 2020, allocated Tasmania $0.84 million (to be matched by the state) in 2019-20, which may be expended by the states in 2019-20 and 2020-21.
$7 million over two years ($5 million in 2020-21 and $2 million in 2021-22) will be provided to support the Energy, Trades, and Water Centre of Excellence at TasTAFE Clarence campus, allowing the delivery of best practice training in plumbing, energy, mechanical services and related industries. This is in addition to $7 million committed in the 2018-19 Budget and $7 million committed for Revitalising TAFE Campuses by the Australian Government ($2 million in 2020-21), taking total funding to $21 million. The Energy, Trades, and Water Centre of Excellence is a key deliverable for TasTAFE (Government services: Budget paper no. 2: Volume 1, p. 298; Government services: Budget paper no. 2: Volume 2, p. 121).
TasTAFE will receive funding of $2.3 million over two years from 2020-21 as part of the Government's Public Building Maintenance Program. Projects to be delivered will support critical maintenance on publically owned assets, including residence upgrades at Clarence and Alanvale sites (Government services: Budget paper no. 2: Volume 2, p. 121).
Funding of $4 million is provided over two years for critical IT network infrastructure upgrades. This investment will help provide a solid platform for the continued delivery of online learning to complement TasTAFE's on-campus and in-workplace delivery (Government services: Budget paper no. 2: Volume 2, p. 121).
$500 000 will be provided in 2020-21 and a further $500 000 in 2021-22 to support the establishment of a Tourism and Hospitality Led Registered Training Organisation (Government services: Budget paper no. 2: Volume 1, p. 304).
Priority Industry Skills Funding - More Teachers at TasTAFE provides $2 million over two years, commencing in 2020-21, to assist TasTAFE increase specialist teaching staff to address high demand training areas, including aged care, electro technology, plumbing and nursing. This measure is a key deliverable for TasTAFE, and extends the skilled Workforce to Meet Industry Demand initiative (Government services: Budget paper no. 2: Volume 1, p. 299; Government services: Budget paper no. 2: Volume 2, p. 121).
The 2019-20 Budget included $2.9 million over two years for the Skilled Workforce to Meet Industry Demand initiative. This funding is providing increased pre-vocational training to support construction industry apprentices, and increased capacity in the Diploma of Nursing to address workforce demands (Government services: Budget paper no. 2: Volume 2, p. 121).
The Funding of Key VET Courses (JobTrainer) measure allocates $10.5 million in 2020-21 to provide low or no fee training places for job seekers, school leavers, and young people looking to upskill and retrain, regardless of prior qualification attainment. Funding will be available for nationally accredited qualifications and short courses in areas of identified skills needs. This measure addresses one of the recommendations of the PESRAC interim report (Government services: Budget paper no. 2: Volume 1, p. 299; The budget: The budget: Budget paper no. 1, p. 5).
In response to the COVID-19 pandemic, $6.3 million was announced for the Rapid Response Skills Initiative in March 2020. The program supports the cost of training for people who have lost their jobs because they have been made redundant, the place they worked has closed, or the employer had to let staff go. Funding of $6.0 million for the program will be provided in 2020-21 (Government services: Budget paper no. 2: Volume 1, p. 299; Media release 27 March 2020).
Funding of $570 000 is allocated over three years to support the achievement of the intended outcomes of the Aboriginal Employment Strategy and School-based Traineeship Program; and for the delivery of Aboriginal Cultural Respect training for State Senior Executive Service and Senior Managers (2020-21 budget speech, p. 10; The budget: The budget: Budget paper no. 1, p. 61).
The Adult Learning Strategy is allocated $4.4 million over the 2020-21 Budget and Forward Estimates to: expand 26TEN services; provide additional places for online literacy and numeracy volunteers training; and formalise support services for adult learners (Government services: Budget paper no. 2: Volume 1, p. 301).
$400 000 is allocated over two years from 2020-21 for measures to support industry to attract and retain women into non-traditional fields and to support leadership pipelines for women in these fields. Supporting Industry Pipelines for Women will be administered by the Department of Communities Tasmania (Government services: Budget paper no. 2: Volume 1, p. 30).
Prior year budget highlights can be accessed by clicking on the buttons below.
NCVER (National Centre for Vocational Education Research) 2020, Budget highlights: Tasmania 2020-21, VET Knowledge Bank, NCVER, Adelaide, <https://www.voced.edu.au/vet-knowledge-bank-policy-initiatives-budget-highlights-tasmania-2020-21>.
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