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Budget 2009-2010 Initiatives
In the 2009-10 Budget, the Australian Government is continuing its significant investment in and support for Australian Apprenticeships through new streamlined measures.
These initiatives will support employers to take on and retain Australian Apprentices by providing valuable employment and training opportunities for those Australians looking to gain skills or retrain. They will also ensure that Australia’s skills base is protected and maintained. It is important to maintain the flow of fully qualified tradespeople to support economic growth as the economy emerges from the downturn as it is anticipated that the demand for skills will strongly rebound.
The Budget announcement provides a $3.8 billion investment in Australian Apprenticeships (apprenticeships and traineeships) over four years. This is in addition to providing $155 million for the Securing Australian Apprentices measures and $20 million for the Skills for Sustainability Incentive for Australian Apprentices. The Government is also investing around $2 billion for the Productivity Places Program (85,000 places in this program have been identified for apprentices and trainees).
The new Budget announcements streamline existing initiatives to eligible Australian Apprentices and employers and aim to address the low take-up rates along with simplifying the administrative processes associated with the management of some of these initiatives. The main Budget announcements, commencing on
1 January 2010 include:
- Broadening eligibility for the $4,000 incentive payments to the employers of all Australian Apprentices who are studying Diploma and Advanced Diploma level qualifications.
- The extension of the Support for Mid-Career Apprentice payment from those aged 30 and over to those aged 25 and over. The new payment will be called ‘Support for Adult Apprentices’.
- Custodial Australian Apprentices who commence an Australian Apprenticeship will become eligible for Australian Apprenticeship incentives upon release. Employers who employ custodial Australian Apprentices may be eligible to attract incentives provided they continue to employ the Australian Apprentice post-release.
This initiative applies to people who are serving a prison sentence and commence an Australian Apprenticeship in preparation for release into the community. Currently, if the Australian Apprentice stays with the same employer for the term of their Australian Apprenticeship, no incentives flow to either the employer or the Australian Apprentice.
- The enhancement of the ‘Tools For Your Trade’ voucher initiative to the new ‘Tools For Your Trade’ payment initiative for Australian Apprentices. This combines and extends three existing separate support initiatives (the Tools For Your Trade voucher, Apprenticeship Wage Top-Up and Commonwealth Trade Learning Scholarship) into the one new ‘Tools For Your Trade’ payment under the Australian Apprenticeships Incentive Program. The new ‘Tools For Your Trade’ payment will be available to Australian Apprentices in selected trade occupations, agricultural occupations, and if in rural and regional Australia, horticulture occupations. The new payment comprises five tax exempt cash payments totalling $3,800 paid over the life of the Australian Apprenticeship. Payments of $800 will be paid at the three, 12 and 24 month points and $700 at the 36 month point and on completion.
As a result of the new ‘Tools For Your Trade’ payment, commencing on 1 January 2009, Apprenticeship Wage Top-Up and Commonwealth Trade Learning Scholarship initiatives will cease for new commencements as of 31 December 2009.
In addition, the Tools For Your Trade voucher initiative will cease on 12 May 2009.
New commencements on or after 13 May 2009, may be eligible for the new
‘Tools For Your Trade’ payment. Payments will commence in January 2010.
Your Australian Apprenticeships Centre will be able to provide advice about potential eligibility for the new ‘Tools For Your Trade’ payment closer to the commencement date of 1 January 2010.
- The Apprenticeship Training (Fee) Vouchers (ATV) program
ceased for new commencements and recommencements from 1 July 2009.
The ATV program was a significantly undersubscribed program and since
its introduction, the Australian Government has invested heavily in
fee-free and reduced cost training (including for Australian
Apprentices) through the Productivity Places Program. The decision to
cease the ATV program represents a refocusing of the Government's
funding priorities in relation to offsetting fee costs rather than a
withdrawal of support.
The last day for paying course fees under the ATV program was Wednesday
30 September 2009. Australian Apprentices who did not pay their course
fees prior to or on this date will no longer be eligible to receive
reimbursement under this Program. For Australian Apprentices who are
eligible and paid their course fees prior to or on 30 September 2009, a
correctly completed claim form with evidence of course fees being paid
must be received by DEEWR Tasmania office by 5pm on 30 October 2009 to
be considered under the ATV program.
For more information on the cessation of the ATV program, please refer
to Frequently
Asked Questions (FAQ).
- The Shared Completion incentive will cease as of 30 June 2009. For completions from 1 July 2009, the Completion Incentive will be paid to only the employer with whom the Australian Apprentice is employed at the time of completion.
For more information on these Budget announcements and how they affect
your apprenticeship, please contact your Australian Apprenticeships Centre
or call 13 38 73.
