David Van (Victoria, Liberal Party) Share this | Hansard source

I rise today to speak in support of the Trade Support Loans Amendment (Improving Administration) Bill 2019, which supports Australia's apprentices and the tradies of our future. I acknowledge the hard work of Senator Cash, who is working to raise the profile of the vocational education and training sector to ensure that it becomes a viable option for many students leaving high school. This 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 training sector has worked with for many years. As 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 the changing workforce and to make available vocational training and courses that best suit their abilities and interests.

Overall, the Morrison government is investing over $3 billion in 2019-20 to ensure that the VET system delivers the right skills for Australia's workforce of today and tomorrow. This funding includes a range of measures that not only directly support young people in the VET sector but also encourage employers to take on apprentices and trainees. This support comprises $1.1 billion to fund the government's own skills programs, including employer incentives and support for Australian Apprenticeships; $1.5 billion given to the states and territories every year through the National Agreement for Skills and Workforce Development specific purpose payment; and $175 million given to states and territories via the Skilling Australians Fund to support increased apprenticeship and traineeship numbers.

In my home state of Victoria, the coalition government will provide around $1.6 billion 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. I'm pleased to say that this includes the $98 million that was paid to employers in 2018-19 under the Australian Apprenticeships Incentives Program and the $62.3 million that was paid to apprentices under the Trade Support Loans program. As at December 2019, 2,000 apprentices in Victoria are expected to attract the new additional identified skills shortage payment for their employer and 3,027 had commenced in an eligible occupation. In 2018, there were 21,453 Victorian enrolments in VET student loan courses, with loans of almost $102 million. Through the Australian Apprentice Wage Subsidy trial we're also supporting over 3,200 employers across regional Australia to engage more Australian apprentices in areas of skill needs. Victoria was allocated a total of 662 places over the two phases of the trial.

The 2019-20 budget committed $50.6 million 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 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 in 2011-12 to an expected $428 million in 2022-23. Overall, the Commonwealth is investing over $3 billion in 2019-20 to ensure that the VET system delivers the right skills for Australia's workforce.

The coalition government has already implemented policies to support people undertaking apprenticeships and to take on apprentices. Our Skilling Australians Fund will create more apprenticeships to support future productivity, jobs and growth. Over $330 million 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 to trial 10 local industry training hubs in areas of high youth unemployment to ensure that 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, specifically targeting Year 11 and 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'm very pleased to hear that from January 2021 a training hub will be located in the rural town of Shepparton in my home state of Victoria.

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 $21,000 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 $45,000 in 2019-20. In order to maintain the real value of the loans, the loan amount will be indexed according to the CPI. 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 it demonstrates the importance the coalition government is placing on ensuring that our budding tradies are well supported to complete their apprenticeship. During the 2018-19 financial year the Trade Support Loans program provided financial support to around 56,000 Australians 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 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. The 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 instalments amount 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 the change of circumstance within seven days. This bill allows notification to occur within 14 days. These changes, importantly, will reduce the administrative burden on apprentices and 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, ever achieve. I commend this bill to the Senate.