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$587 MILLION FOR NEW APPRENTICESHIPS INCENTIVES

10 May 2005 MINBUD 03/05

Minister for Vocational and Technical Education, Gary Hardgrave, today said the Australian Government will spend $587.1 million in 2005-06 on the New Apprenticeships Incentives Programme.

Mr Hardgrave said this confirms the Coalition Government’s commitment to providing opportunities for Australians, while addressing skills needs, particularly those in the traditional trades.

Since 1996 over 1.6 million New Apprentices have commenced in more than 1,500 nationally recognised qualifications developed by industry. There is now a record 393,800 New Apprentices in training.

Commencements in trades and related New Apprenticeships increased by 19% in the 12 months to September 2004.

"The record participation in New Apprenticeships is due, in large part, to the Australian Government’s generous New Apprenticeships Incentives Programme which provides direct financial incentives to employers to open up New Apprenticeship opportunities," Mr Hardgrave said.

"As part of the support for New Apprenticeships, the New Apprenticeships Incentives Programme in 2005-06 will provide $554.5 million in incentives to employers and $32.6 million in personal benefits to New Apprentices.

New initiatives to enhance the New Apprenticeships Incentives Programme include:

• extending the Living Away From Home Allowance to third year New Apprentices. This will assist people who have to move away from home to take up or continue with a New Apprenticeship by paying them $25 per week in the third year of their New Apprenticeship.
   
• Commonwealth Trade Learning Scholarships will provide New Apprentices with two payments of $500 at the successful completion of each of the first and second years of their New Apprenticeship in the traditional trades.
   
• the significant investment employers make in training New Apprentices will be acknowledged by allocating a share of the completion incentive payment to those employers in the traditional trades who have provided 25 per cent or more of a New Apprentice’s training.
   
• eligibility for incentives will be opened up to employers who offer a New Apprenticeship opportunity to young people who have already obtained a Certificate I to Certificate IV qualification at their own expense.

Information on the individual initiatives is provided in separate media releases.

"The Australian Government is committed to continue working with industry to solve critical skills needs and promoting New Apprenticeships as a worthwhile career choice for young people," Mr Hardgrave said.

Media Contact:
Mr Hardgrave’s Office Suzanne Ferguson 0402 896 100

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