May 2005 Budget New Initiatives

The Australian Government will over the next four years:

• open 24 new Australian Technical Colleges, aimed at increasing the number of  New Apprentices in the traditional trades, which complement their school studies, allowing them to secure a Year 12 level education while progressing towards a qualification in the traditional trades. See Minister Hardgrave’s media release at: http://www.dest.gov.au/ministers/hardgrave/budget05/bud06_05.htm ;
• provide a further 4,500 pre-vocational training places in trades. See Minister Hardgrave’s media release at: http://www.dest.gov.au/ministers/hardgrave/budget05/bud10_05.htm ;
• fund an additional 7,000 School-Based New Apprentices through Group Training Organisations. See Minister Hardgrave’s media release at: http://www.dest.gov.au/ministers/hardgrave/budget05/bud10_05.htm ;
• provide for an additional 20,000 places in the New Apprenticeships Access Programme, specifically targeting industries and regions experiencing skill shortage. See Minister Hardgrave’s media release at: http://www.dest.gov.au/ministers/hardgrave/budget05/bud09_05.htm;
• supply tool kits up to the value of $800 to around 34,000 New Apprentices each year who enter an New Apprenticeship in a skill shortage trade. See Minister Hardgrave’s media release at: http://www.dest.gov.au/ministers/hardgrave/budget05/bud07_05.htm ;  
• extend the Living Away From Home Allowance paid to New Apprentices to the third year of their New Apprenticeship. See Minister Hardgrave’s media release at: http://www.dest.gov.au/ministers/hardgrave/budget05/bud12_05.htm; and
• provide a Commonwealth Trade Learning Scholarship of $500 to New Apprentices undertaking skill needs trades at the end of each of their first and second years of their New Apprenticeship. See Minister Hardgrave’s media release at:  http://www.dest.gov.au/ministers/hardgrave/budget05/bud08_05.htm .

To assist employers who invest in training an New Apprenticeship, from 1 July 2005 the Australian Government will change the way the New Apprenticeshipships completion incentive is paid.  This change will deter the poaching of  New Apprenticeships from employers that invest significant resources into their training by splitting incentive payments between employers on the basis of the time invested in training.

To encourage young people to enter and remain in New Apprenticeships, from 1 July 2005 New Apprentices will be able to apply for assistance under Youth Allowance, Austudy payment or ABSTUDY, subject to the application of parental and personal income tests.  Under this initiative, New Apprentices may be eligible to receive extra support from the Government while their wages are at their lowest, reinforcing the importance of skills and trade training and providing another incentive for young people to enter into and to complete an New Apprenticeship.  Eligible New Apprentices will also be able to access a Low Income Health Care Card upon lodgement of a claim with Centrelink.  This approach is consistent with arrangements for full-time students in receipt of a student allowance.

Only Centrelink can provide details on the rate of payment as individual circumstances must be taken into account.  Assessing eligibility and rate of payment can be complex and must be left to Centrelink.

Centrelink call centres are open from 8:00am – 7:00pm Monday to Friday.  The number is 133633.  More information about the payments is available at http://www.centrelink.gov.au/  .    

Claimants will not be able to receive LAFHA and Youth Allowance and must compare entitlements under each scheme to determine which payment will assist them better.