Andrew Robb (Goldstein, Liberal Party, Minister for Vocational and Further Education) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The Social Security Amendment (Apprenticeship Wage Top-Up for Australian Apprentices) Bill 2007 will increase the take-home pay of Australian apprentices in the initial years of their training.

This government’s sound financial management has produced a strong economy, an economy that is about one and a half times larger than it was in 1996. A strong and growing economy requires skilled employees.

The Australian government is a strong supporter of vocational education and training (VET). This bill supports the government’s intention to address skills shortages in the Australian economy. It is aimed at encouraging people to participate in Australian apprenticeships, providing them with the skills needed to enter or re-enter the workforce, retrain for a new job or upgrade for an existing job. Australian apprenticeships provide people with a nationally recognised qualification and a strong prospect of a personally and financially rewarding career. This measure will increase the supply of skilled people to meet the needs of business and support a more competitive and innovative economy.

The Apprenticeship wage top-up for Australian apprentices acknowledges that the first and second years of an apprenticeship can be particularly difficult, when wages are at their lowest. It also acknowledges how important these people are to our continued economic competitiveness, performance and growth.

This measure will provide a tax-free $1,000 per year, over two years, to Australian apprentices under 30 undertaking an Australian apprenticeship in a trade occupation identified as experiencing national skills shortages.

Payable in $500 six-monthly instalments the apprenticeship wage top-up payment will ease the financial burden faced by Australian apprentices in the first two years of their training. In total Australian apprentices will receive $2,000 under the initiative over the two-year period. Part-time and Australian school-based apprentices will also benefit on a pro-rata basis.

The apprenticeship wage top-up payment will provide additional support to more than 228,000 Australian apprentices over four years.

This amending bill contains provisions for exemptions from the Social Security Act 1991, the Income Tax Assessment Act 1997 and the Veterans’ Entitlements Act 1986. This will mean that Australian apprentices will receive the full payment and not be required to declare it as part of their income and will also ensure receipt of this payment will not affect any pensions or allowances they may be eligible to receive.

Assistance provided under this initiative will encourage many young people to consider technical and trade training, to ensure that Australia has the skilled workforce to meet our future needs. It will also allow many Australian apprentices to remain in training and reach their goals to become fully qualified tradespersons. The apprenticeship wage top-up payment will not affect the eligibility for other initiatives or incentives available to Australian apprentices.

This measure, combined with the suite of other initiatives already put in place by this government, represents a significant investment in the future growth of Australian industries.

I commend this bill to the House.

Debate (on motion by Ms Plibersek) adjourned.