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Policy initiatives > Budget highlights > Tasmania 2022-23
The 2022-23 budget was released by the Rockliff Liberal Government on 26 May 2022. Budget highlights relating to skills and training are provided below. Direct links to relevant budget papers are provided for quick and easy access.
The Payroll Tax Rebate Scheme provides payroll tax relief to businesses operating in Tasmania that employ apprentices, trainees and youth employees. The Scheme was extended to 30 June 2024 and applies to all new apprentices and trainees employed before that date. The payroll tax rebate is provided for a two year period from the date that apprentices and trainees are employed and one year from the date that youth employees are employed. The cost of the Scheme is estimated at $800 000 for 2022-23 (Budget paper no. 1: The budget, pp. 56 and 88; Budget paper no. 2 volume 1: Government services, p. 91).
The Apprentice and Trainee Grant for Small Business program provides employers who are not entitled to claim the Payroll Tax Rebate Scheme, a subsidy of up to $5000 for each apprentice or trainee they employ as a new worker from 1 January 2021. The expansion of the program was allocated funding of $5.4 million in 2021-22 and 2022-23 in the 2020-21 budget (p. 298). The program has been fully allocated and closed on 30 April 2022. The expenses for the initiative are estimated to be $10.55 million in 2022-23 (Budget paper no. 2 volume 1: Government services, p. 275).
The Targeted Small Business Grants Program for Apprentices and Trainees was introduced in the 2018-19 budget (p. 296) to support small business employers who are not entitled to claim the Payroll Tax Rebate. The program was allocated $7.5 million over three years to provide a grant of up to $5000 to be paid for each new apprentice or trainee taken on by a small business in an area of identified skills demand. Funding for the program was brought forward as part of the Tasmanian Support and Stimulus Package in March 2020. The program closed on 30 December 2020, and was replaced by the Apprentice and Trainee Grant for Small Business program. The estimated expenses in 2021-22 for the initiative are $293 000 (Budget paper no. 2 volume 1: Government services, p. 275).
The budget includes $18 million to provide low or no fee training places for job seekers. See the 'Job Trainer Extension' initative in the Training providers and programs section below for more information (Budget overview, p. 8)
$7.9 million will be provided over two years to operate the four new Local Jobs Hubs in communities across Tasmania (Budget overview, p. 8). The 2021-22 budget (pp. 328 and 335) allocated $4.45 million in 2022-23 and $3.45 million in 2023-24 to the Jobs Hub Initiative. This initiative supports the establishment of four new jobs hubs in regional communities around Tasmania: South Central region, based in Brighton; Huonville and Channel, including Bruny Island; St Helens Jobs Hub expanding to the greater East Coast and North East; the North West and West Coast Jobs Hub centred in Burnie; and expanded coverage through the Northern Employment and Business Hub.
This initiative, introduced in the 2021-22 budget (pp. 328 and 334), provides an additional $1 million ($500 000 each year in 2022-23 and 2023-24) to support the building and construction industry as part of a coordinated effort in workforce development and training to attract more workers to the sector (Budget speech, p. 7; Budget paper no. 2 volume 1: Government services, pp. 267 and 270).
The 2022-23 budget supports a substantial pipeline of infrastructure investment to sustain Tasmania's recovery from the COVID-19 pandemic, support economic activity and jobs across the State. The 2022-23 budget and forward estimates includes investment in excess of $4.8 billion in community infrastructure projects, to be delivered by government agencies, including $313.7 million for schools, education and skills (Budget paper no. 1: The budget, p. 102).
$450 000 has been provided by the Tasmanian Government (announced in the 2021-22 budget, pp. 328, 329 and 333) to support increased gender and cultural diversity across the resource sector. This includes $300 000 to deliver a Diversity Action Plan Project for the forestry sector, to be delivered by the Tasmanian Forest and Forest Products Network, and $150 000 to the Tasmanian Minerals, Manufacturing and Energy Council to create a Diversity Action Plan (Gender budget statement, p. 4).
$450 000 is allocated over three years for the Promoting Women in Industry and Leadership initiative (announced in the 2021-22 budget, pp. 38 and 44) to support women's leadership skills development in the Hospitality Industry in conjunction with the Tasmanian Hospitality Association and industry members (Gender budget statement, p. 4).
In 2022-23, the Australian Government will provide estimated funding of $41.8 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 $33.4 million in 2022-23 (Budget paper no. 1: The budget, p. 85).
The Australian Government will provide additional funding of $5 million per annum in 2023-24 and 2024-25 for the extension of the JobTrainer Fund. Additionally, funding of $5 million in 2023-24 and 2024-25 is allocated for the National Partnership for Skilling Australians Fund (Budget paper no. 1: The budget, p. 86).
The budget papers also show $2.7 million was received for Energising Tasmania, $1 million for the Job Ready Generation Package - North-West Tasmania, $0 from the JobTrainer Fund, $5 million from Revitalising TAFE Campuses across Australia and $2.2 million from the Skilling Australians Fund in 2021-22 (Budget paper no. 1: The budget, p. 86).
An additional contribution from the State of $8 million is provided in 2022-23 to extend the Job Trainer initiative. The Australian Government will provide additional funding of $5 million per annum in 2023-24 and 2024-25 (Budget paper no. 2 volume 1: Government services, pp. 267 and 268).
The Rapid Response Skills Initiative (RRSI) 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. $6.3 million was announced for the initiative in March 2020, in response to the COVID-19 pandemic. The estimated expenses for the program are $1.5 million in 2022-23 (Budget paper no. 2 volume 1: Government services, p. 275).
The expenses for Output Group 1.3: Skills and Workforce Growth are estimated at $179.466 million in 2022-23. Additionally, skills, training and workforce growth related expenses for Output Group 90 - COVID-19 Response and Recovery are estimated at $12.05 million, comprising the Rapid Response Skills Initiative ($1.5 million) and the Expansion of the Apprentices and Trainees Small Business Grant ($10.55 million) (Budget paper no. 2 volume 1: Government services, p. 275).
TasTAFE is a Statutory Authority established by the Training and Workforce Development Act 2013, and is the single public sector entity responsible for post compulsory vocational education and training (VET) in Tasmania. The TasTAFE (Skills and Training Business) Act 2021, anticipated to be proclaimed to commence on 1 July 2022, supports a new business model for TasTAFE that has been designed to best suit the role and functions of the organisation and Tasmanian industry. The transition date to the new model is 1 July 2022 (Budget paper no. 2 volume 2: Government services, p. 123).
The 2021-22 budget fully funded the $98.6 million four year plan for TasTAFE (Media release 26 August 2021; 2021-22 Budget paper no. 2 volume 2: Government services, pp. 120-121).
$3 million is allocated to enable TasTAFE to undertake improvements to ventilation and air quality across its facilities in response to COVID-19 (Budget paper no. 2 volume 2: Government services, p. 124).
This initiative provides additional funding of $7.043 million ($2.043 million in 2022-23 and $5 million across the forward estimates) to support the $37.6 million committed in the 2021-22 budget (p. 120) for the 100 additional TasTAFE teachers initiative and associated services (Budget paper no. 2 volume 2: Government services, p. 124).
Funding of $500 000 is provided to develop a robust business case for further investment in the Virtual Campus initiative and TasTAFE's Student Management System (Budget paper no. 2 volume 2: Government services, p. 124).
Additional funding of $5 million is provided in 2022-23 to enable the successful completion of a Water and Energy Trades Centre of Excellence based at TasTAFE's Clarence campus. This is in addition to $14 million already committed by the State Government and $7 million by the Australian Government (Budget paper no. 2 volume 2: Government services, p. 124).
Prior year budget highlights can be accessed by clicking on the buttons below.
NCVER (National Centre for Vocational Education Research) 2022, Budget highlights: Tasmania 2022-23, VET Knowledge Bank, NCVER, Adelaide, <https://www.voced.edu.au/vet-knowledge-bank-policy-initiatives-budget-highlights-tasmania-2022-23>.
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