Media Release

GOVERNMENT TIGHTENS ELIGIBILITY CRITERIA FOR RE-SKILLING EXISTING WORKER INCENTIVE PAYMENTS

K4905 21 May 1999

Dr David Kemp, Minister for Education, Training and Youth Affairs, today announced a tightening of the eligibility criteria for employers to access Commonwealth incentive payments for existing workers under the New Apprenticeship scheme.

"Last year to encourage employers to retrain their existing workforce, the Government announced changes to the incentives regime which allowed employers of existing workers to attract full Commonwealth incentives if they re-skilled their staff in the higher level qualifications of the New Apprenticeships initiative," said Dr Kemp.

"It was extremely successful. New Apprenticeships stand at a record 206,400 as at December 1998," said Dr Kemp.

"However, it has become apparent that the rapid increase in numbers of New Apprentices who are existing workers is putting pressure on a newly developing national training system originally designed to focus largely on new entrants to the workforce.

"After extensive consultation, I have decided to refocus the Commonwealth’s incentive regime, as it relates to existing workers, to ensure that financial incentives flow to those employers who are showing a commitment to significant training," said Dr Kemp.

Commonwealth incentives will be available to employers who enrol existing staff to Certificate 3 or 4 New Apprenticeships either where the worker has been employed by the company for less than three months full time or twelve months part time/casual, or where the nominal full time training duration of the training agreement is for two years or more. Payment of the incentive is subject to all other eligibility criteria being met. These changes come into effect for all training agreements lodged with New Apprenticeship Centres from Saturday 22 May 1999. There are no changes to the current policy in relation to existing workers undertaking an AQF 2 New Apprenticeship.

"This alteration to the eligibility criteria means that training in the areas of the traditional apprenticeships will continue to attract full incentives," said Dr Kemp.

"The Rural and Regional New Apprenticeships initiative announced in last week’s Budget will be unaffected by this announcement. New Apprenticeships on the register of skill shortages in rural Australia under the initiative will be exempt."

In addition, previous arrangements will be reintroduced whereby trainees commencing Certificate 3 traineeships are not considered to be existing employees if, within the preceding 12 months, they have previously completed a Certificate 2 New Apprenticeship which attracted Commonwealth incentives.

A uniform three month waiting period for receipt of employer commencement incentives will also be introduced, to take effect from 1 September 1999.

A consultation paper examining the rules for eligibility for incentives where people hold a prior qualification and examining the provision of incentives in respect of qualifications gained at school is expected to be released next month.

Media contact: Samantha Herron 02 6277 7460 or 0412 639 754

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