VET News

Skills and Training Budget Overview 2019-20

A $525.3 million Skills Package Delivering Skills for Today and Tomorrow, has been introduced to ensure Australians can access the training they need for the jobs of today and prepare for the jobs of the future.

The Skills Package will work to ensure Australians can gain the skills needed to support current and future prosperity by providing clear and reliable careers guidance to inform study choices, better foundation skills training so no one is left behind, and more apprentices for jobs in demand.

This investment will ensure Australians have the critical skills to meet emerging industry needs, and keep the economy growing.

National Skills Commission and Skills Commissioner

The Skills Package lays the building blocks for reforms identified in the Expert review of Australia's vocational education and training system (Joyce Review), placing industry at the centre and raising the profile of VET as a career pathway of choice. It takes important steps towards longer term funding and governance reforms to help ensure that the VET system is responsive, respected and flexible into the future.

$48.3 million will be invested to establish a National Skills Commission and National Skills Commissioner. The National Skills Commission will provide strengthened industry leadership in determining and implementing priorities for the VET sector.

The Commissioner will work with industry, the VET sector and states and territories on the best model for a Commission going forward. Further information about the National Skill Commission and how this will affect current arrangements, will be published on the Department of Education’s website in the coming months.

Pilot Skills Organisations

The National Skills Commission will oversee a national model that embeds industry in the development of training products and ensures training meets industry needs, by piloting Skills Organisations.

$41.7 million will be invested in Pilot Skills Organisations, to trial new approaches to expand the role of industry in the national training system. Skills Organisations will be piloted in two key priority industries, human services and digital technologies, and will lead industry workforce planning to align training with industry skills needs and employment pathways, and will provide an important avenue for industry advice to government.

Skills Organisations will put industry at the forefront of setting VET qualifications by developing new training programs and qualifications to help the training system to more quickly respond to industry needs. Skills Organisations will develop standards for industry to accredit high quality registered training organisations (RTOs) and pilot independent industry validation of student's competency.

The role of Skills Organisations will be fully developed during the design phase, through close consultation with industry, education providers, state and territory governments, the Australian Skills Quality Authority (ASQA) and other stakeholders. Further information about the pilot Skills Organisations will be published on the Department of Education’s website in the coming months.

 Supporting Apprentices

The Skills Package will support up to 80,000 additional apprenticeships over five years through:

• a new skills shortage payment and
• a streamlined employer incentives program

Additional Identified Skills Shortage Payments

$156.3 million is being provided to establish an Additional Identified Skills Shortage (AISS) payment to boost the supply of skilled workers in occupations experiencing national skill shortages.

From 1 July 2019, the AISS will provide an additional incentive for both employers and apprentices in these occupations.

Eligible employers will receive $2,000 at the 12 month point from commencement of the apprenticeship, and an additional $2,000 at completion of the apprenticeship. Eligible apprentices will also receive $1,000 after 12 months, and $1,000 at completion. The AISS payments will be additional to any payments the apprentice or employer may be eligible for under existing Australian Government programs. Further information about the AISS payments will be published on www.australianapprenticeships.gov.au.

 Streamlined and Simplified Incentives for Australian Apprenticeships

$44 million is being invested to make it easier for employers to access financial support for employing an apprentice, by simplify and streamline employer incentives payments. A comprehensive review of the National Skills Needs List that underpins apprenticeships incentives, and is informed by consultation with industry and employer groups, will be undertaken.

The new incentives payments will be available for employers of apprentices commencing from 1 July 2020. Under the new program, many employers will be better off. Employers claiming incentives for an apprentice or trainee who commenced prior to 1 July 2020 will continue to receive payments under the old payment structure.

Employers can contact their Australian Apprenticeship Support Network Provider for further information about current incentives. Further information about the new incentives arrangements will be published on www.australianapprenticeships.gov.au.

 Engaging with VET

A number of tools to help students and their families, employers, training organisations and the community navigate the skills, jobs and education landscape in Australia. It is essential that Australians have the information they need to make informed choices about the opportunities that VET can provide for initial training, upskilling and re-skilling.

The investment will include:

• National Careers Institute and Careers Ambassador
• Partnership Grants
• Industry Training Hubs
• Jobs and Education Data Infrastructure project

Skills for the Modern Workplace

New programs and additional supports for youth and those with low foundational skills, to ensure they can gain the skills they need to participate in the modern and future workforces, are also on the agenda.

Foundation Skills for Your Future

Foundation language, literacy, numeracy and digital literacy skills are key to Australian's participation in the economy. As the labour market continues to shift towards service industries and non-routine manual or cognitive jobs, workers will need to develop new skills throughout their lives to transition within and between jobs and industries. The $52.5 million Foundation Skills for Your Future program will support workers who are currently employed, or recently unemployed, to identify any literacy, numeracy and digital literacy needs and where appropriate, access training. Foundation Skills for Your Future is expected to commence in early 2020, and further information about how to access the program and eligibility requirements will be published on the department's website closer to that time. In addition, $9.9 million will support the establishment of four delivery pilots in remote communities in Northern Queensland, Northern Territory, Western Australia and South Australia.

Foundation Skills for Remote Communities and Commonwealth Training Scholarships for Young Australians have also received funding allocations and support.

For more information, you can view the Skills and Training overview on the DET website.

Date posted Apr 3, 2019