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Strengthening Indigenous Communities - Targeting ABSTUDY to boost employment for Indigenous students

9 May 2006 BUD 17/06

A new initiative to encourage more Indigenous students to undertake courses at Australian Qualifications Framework (AQF) Certificate III and IV levels to increase their chances of successful and sustained employment, was announced today as part of the 2006-07 Budget by the Minister for Education, Science and Training, the Hon Julie Bishop MP.

From 1 July 2007, the Government will limit to four years the amount of time a student is eligible to receive the ABSTUDY Living Allowance or Pensioner Education Supplement while undertaking AQF Certificate I and II courses. By limiting time spent on lower level courses, this measure encourages participation at higher levels of study for students receiving ABSTUDY Living Allowance or ABSTUDY Pensioner Education Supplement.

This initiative will encourage progress through tertiary study to higher levels and ultimately improve employment prospects.

"We know that attaining a Certificate Level III or above can significantly increase the chance of ongoing and fulfilling employment," Minister Bishop said.

"Indigenous students are under-represented at the Certificate III and IV levels and Diploma and higher levels. Encouraging students to progress to higher levels will help to redress this situation."

In a complementary initiative, the Minister also announced that from 1 January 2007 there will be strengthened arrangements for the payment of the ABSTUDY School Term Allowance for Indigenous junior secondary school students, by linking it to school attendance of at least 85%.

"Participation in education and training is a foundation for Indigenous economic development. These measures are an important addition to the many other initiatives being introduced in this Budget to close the gaps between the educational outcomes of Indigenous and non-Indigenous students," Minister Bishop said.

Supporting Information

Why are these important?

• At present, Indigenous students are under-represented at the Certificate III and IV levels and Diploma and higher levels.
• Many students continue to study courses at the Certificate I and II levels and do not progress to higher level Certificate courses that substantially improve employment prospects.
• In terms of school attendance, there is an overall gap of some 10% between the attendance of Indigenous and non-Indigenous school students. The gap is even greater in remote areas.
• Linking eligibility for the School Term Allowance to attendance of Indigenous students to 85% will provide an incentive for families to support students to attend school on a regular basis.

Who will benefit?

What have we done in the past?

When will the initiative conclude?

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