Trade Support Loans Amendment (Improving Administration) Bill 2019

Senator VAN (18:39): I rise today to speak in support of the Trade Support Loans Amendment (Improving Administration) Bill that supports Australia’s apprentices and the tradies of our future.

I acknowledge the hard work of Senator Cash, who is working towards raising the profile of the Vocational Education and Training sector to ensure it becomes a viable option for many students leaving high school.

This is something that is vitally important as we face the challenges of new and emerging industries as well as the evolution of the more traditional trades that the vocational sector has worked with for many years.

As the new industries emerge and the more traditional trades become more technologically sophisticated, vocational careers are often a much better job path than university for many young people.

Also, a vital way to tackle youth unemployment is to give young people the relevant skills for a changing workforce and to make available vocational training and courses that best suit their own abilities and interest.

Overall, the Morrison Government is investing over 3 billion dollars in 2019–20 to ensure the VET system delivers the right skills for Australia’s workforce of today and tomorrow.

This funding includes a range of measures that not directly support young people in the VET sector, but also encourages employers to take on apprentices and trainees. 

·        1.1 billion dollars to fund the Government’s own skills programs, including employer incentives and support for Australian Apprenticeships;

·        1.5 billion dollars given to the states and territories, every year, through the National Agreement on Skills and Workforce Development Specific Purpose Payment;

·        175 million dollars to the states and territories via the Skilling Australians Fund to support increased apprenticeships and traineeship numbers.

In my home state of Victoria, the Coalition Government will provide around 1.6 billion dollars  to Victoria over four years through the Special Purpose Payment to support skills development.

The Australian Government also provides funding directly to Victorian employers to hire apprentices. This includes:

·        98.0 million dollars was paid to employers in 2018–19 under the Australian Apprenticeships Incentives Program;

·        62.3 million dollars was paid to apprentices themselves under the Trade Support Loans program;

·        As at December 2019, 2000 apprentices in Victoria are expected to attract the new Additional Identified Skills Shortage (AAIS) payment for their employer and 3027 commenced in an eligible occupation.

In 2018, there were 21,453 Victorian enrolments in VET Student Loans courses with loans of almost 102 million dollars.

Through the Australian Apprentice Wage Subsidy trial, we are also supporting over 3200 employers across regional Australia to engage more Australian Apprentices in areas of skills needs.

Victoria was allocated a total of 662 places over the two phases of the trial.

The 2019–20 Budget committed 50.6 million dollars over four years to trial Industry Training Hubs in 10 regions with high youth unemployment, including Shepparton in Victoria.

·        The Australian Government provides 1.5 billion dollars every year to state and territory governments under the National Agreement for Skills and Workforce Development Specific Purpose Payment.

·        Funding from the Commonwealth to the Victorian Government under this agreement has been steadily increasing, from around 338 million dollars in 2011–12 to an expected 428 million dollars in 2022–23.

·        Overall, the Commonwealth is investing over 3 billion dollars in 2019–20 to ensure the VET system delivers the right skills for Australia’s workforce of today and tomorrow.

Madam Acting Deputy President, the Coalition Government has already implemented policies to support people to undertake apprentices.

Our Skilling Australians Fund will create more apprenticeships to support our future productivity, jobs and growth.

Over 330 million dollars has been provided to state and territory governments, supporting approximately 80,000 apprenticeship and traineeship opportunities. They target occupations with skills shortages, through incentive payments for employers and apprentices.

We are investing 50.6 million dollars to trial 10 local Industry Training Hubs in areas of high youth unemployment, to ensure vocational education programs are tailored to meet local workforce needs and skills demands. The Hubs aim to improve opportunities for young people in regions with high youth unemployment, targeting Year 11 and Year 12 students.

Each Training Hub will be managed by a full-time Career Facilitator, providing an on the ground presence while delivering Training Hub services.

I am pleased to hear that a training Hub will be located from January 2021 in my home state of Victoria, in Shepparton.

To support Australian Apprentices to meet everyday costs while they undertake their training, eligible apprentices will be able to apply for Trade Support Loans. The Coalition Government introduced these Loans in July 2014 to help apprentices successfully complete their apprenticeship.

The loans provide around 21 thousand dollars over four years to eligible apprentices to assist them with the costs of living and learning while undertaking their training

Similar to a HECS-HELP loan, loans will not have to be repaid until the apprentice is earning an income above the minimum repayment threshold. This threshold was around 45 thousand dollars in 2019-20.

In order to maintain the real value of the loans, the loan amount will be indexed according to the Consumer Price Index.

Apprentices who successfully complete their apprenticeship will receive a 20 per cent discount on their loan amount.

Trade Support Loans are by far the best loan any apprentice will receive. It is better than a commercial loan and demonstrates the importance the Coalition Government are placing on ensuring that our budding tradies are well supported to complete their apprenticeship.

During the 2018 to 19 financial year, the Trade Support Loans Program provided financial support to around 56,000 Australian Apprentices.

While in receipt of the Loan, apprentices must notify their Provider of any change in their circumstances which may impact their eligibility – for example, if their apprenticeship is suspended or if they change employers.

Where a Loan instalment payment is made and the Apprentice has not notified their provider of the change, the Apprentice may incur an overpayment debt to the Commonwealth, which needs to be repaid immediately.

This Bill will allow offsetting arrangements to be implemented where the Apprentice is eligible to receive Loan instalments in the future.

Future instalments are reduced by the Loan instalment amounts already received in error until the debt is fully remedied.

While in receipt of the Loan, apprentices are also required to inform the Secretary of the Department if their address or circumstances change.

Currently apprentices must notify a change of address within 14 days. This Bill allows notification to occur after 14 days.

Currently apprentices must notify a change of circumstance within 7 days. This Bill allows notification to occur within 14 days.

These changes will importantly reduce the administrative burden on apprentices and our providers.

The Coalition Government is committed to ensuring that we are equipping Australians with the skills they need for good, secure jobs. 

We are committed to ensuring that the economy is managed in such a way that these programs are affordable, effective and targeted to help those take advantage of a modern and growing economy – something Labor could never achieve.

I commend this Bill to the Senate