9 May 2006 BUD 24/06

The 2006-07 Budget introduces funding for a range of collaborative vocational and technical education measures to build a better future for all Australians and continues the significant investment already made to improve further our nation’s strong and world-renowned Vocational and Technical Education (VTE) sector.

The 2006-07 Budget provides funding of $181.6 million for a range of collaborative VTE initiatives to build a better future for all Australians and provide more choice for young people.

"One year ago, we set a major challenge for Australia - to maintain and further strengthen vocational and technical education by building an industry-led system that delivers what Australian businesses, communities and individuals need to increase their own personal, and our collective, economic and social prosperity," said the Minister for Vocational and Technical Education, the Hon Gary Hardgrave MP.

"One year on, we are well advanced towards achieving our goals. Australia’s national training system is agile, industry-led, and is providing real choice for the 70 per cent of young Australians who do not go directly from school to university, for mature aged Australians and for everyday Australians who see an opportunity to retrain."

Australia has experienced sustained economic growth over the past decade, resulting in increased demand for skilled workers across many occupation groups. The funding supports a suite of initiatives aimed at addressing skills needs and removing barriers to a nationally consistent training system.

The Australian Government is committed to the delivery of quality training and has backed that commitment with record funding. All state and territory governments have agreed to support Australian Government priorities through the Commonwealth-State Agreement for Skilling Australia’s Workforce, in order to ensure consistency of quality throughout Australia.

In this Budget, the Australian Government is announcing funding of $53.5 million over four years to lead national reform through the Council of Australian Governments. This positions vocational and technical education to address barriers to more people taking up training opportunities and their transition into employment. It will also support a genuinely national approach to apprenticeships, training and skills recognition to alleviate skills gaps that currently exist in some parts of the economy.

Under the Howard Government, the number of Australians benefiting from New Apprenticeships has flourished, with the number of people undertaking a New Apprenticeship increasing by 142 per cent, to almost 398,000 in more than 500 occupations in the past decade. The number participating in trades and related New Apprenticeships has also grown, so that today, 42 per cent of apprentices are participating in traditional trades.

"The Australian Government has committed an additional $106.7 million over the next four years to support the continued quality and accessibility of New Apprenticeships," Mr Hardgrave said.

"This funding will ensure that all Australians will have access to information, support and advice in relation to New Apprenticeships, no matter where they live."

In order to encourage further participation by people with a disability, the Australian Government provides additional assistance through a range of initiatives. These include the Commonwealth-State Agreement for Skilling Australia’s Workforce, Welfare to Work and the continued commitment to the Disability Coordination Officer Programme, which provides greater choice and more effective transitions to people with a disability who are considering their options after finishing school.

"Our challenge for the coming year is to build on the gains we have achieved to date and to continue to pursue reforms to the national training system so that it supports Australian industry, communities and individuals, and ultimately Australia’s increasing economic prosperity,"
Mr Hardgrave said.

Budget Snapshot:

• Enhanced support services for apprentices and their employers through an additional $106.7 million over four years for New Apprenticeships Centres. The additional funding will increase the Australian Government allocation to the Centres to $692.1 million over four years from 1 July 2006.
• An extra $6 million in 2005-06 to fund the National Skill Shortages Strategy. The strategy involves a partnership between the Australian Government and key industry groups working to develop solutions and models to address current and future industry skills needs in areas of critical skills needs, particularly traditional trades. Projects include streamlined approaches for recognition of existing workers’ skills, attracting new entrants to particular industries and enhancing their career paths.
• Funding of $10.6 million over four years to extend incentives for employers of New Apprentices in select Diploma and Advanced Diploma New Apprenticeships in key growth areas.
• $10 million for the Australian Lifesaver Training Academy to provide, for the first time, a nationally consistent approach to surf rescue and public safety training and education programmes.
• Funding for the continuation of the Disability Coordination Officer Programme, which provides greater choice and more effective transitions to people with a disability who are considering their options after finishing school.
• Funding of $53.5 million over four years to support national reforms agreed through the Council of Australian Governments (COAG) to develop a national approach to apprenticeships and address inherent barriers to more people taking up training opportunities and their transition into employment.