Australian Government, 2009‑10 Budget
Budget

Part 2: Expense Measures

Education, Employment and Workplace Relations

Alternative Dispute Resolution Assistance Scheme — discontinuation

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - -4.9 -4.9 -4.9 -4.9

The Government will cease funding for the Alternative Dispute Resolution Assistance Scheme announced in the Mid‑Year Economic and Fiscal Outlook 2005‑06. The Alternative Dispute Resolution Assistance Scheme was designed to provide financial assistance to eligible employers and employees choosing to use private alternative dispute resolution to resolve workplace disputes. The Fair Work Act 2009 provides for a less legalistic approach to dispute resolution and removes the need for the Alternative Dispute Resolution Assistance Scheme.

This measure will provide savings of $19.6 million over four years.

An Innovation and Higher Education System for the 21st Century — Australian Universities Quality Agency — redirection of funding

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - -1.3 -1.3 -1.3

The Government will redirect funding from the Australian Universities Quality Agency (AUQA). This measure will provide savings of $3.9 million over three years to offset the cost of establishing a new national quality and regulatory agency for higher education. The functions of AUQA will be subsumed by the new body.

See also the related expense measure titled An Innovation and Higher Education System for the 21st Century — National Quality and Regulatory Agency for Higher Education — establishment in the Education, Employment and Workplace Relations portfolio.

An Innovation and Higher Education System for the 21st Century — conditional funding and revised indexation arrangements

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - 58.3 173.2 297.1
Department of Innovation, Industry, Science and Research - - - 12.7 38.9
Total - - 58.3 185.9 336.0
Department of Education, Employment and Workplace Relations - - .. 0.5 2.2

The Government will provide an additional $577.6 million over three years to higher education institutions as a result of changes in the indexation arrangements that apply under the Higher Education Support Act 2003 (HESA). The Safety Net Adjustment component of the Higher Education Indexation Factor (HEIF) will be replaced by a professional wage and salary cost index. The index will be discounted by ten per cent to ensure universities continue to pursue improvements in productivity.

Transitional arrangements will apply from 2011. Maximum student contribution amounts will be indexed using the new index and higher education providers will also receive funding equivalent in value to the improved indexation on teaching and learning grants on a conditional basis. From 2012 for research grant and fellowship payments.

The revenue impact in this measure relates to amounts loaned under the Higher Education Loan Program (HELP) specifically the indexation on the outstanding HELP debt and associated loan fees. The additional public debt interest cost incurred by the Australian Government in financing the loans is separately accounted for in the budget papers.

See also the related expense measure titled An Innovation and Higher Education System for the 21st Century — funding for institutional performance targets.

An Innovation and Higher Education System for the 21st Century — demand‑driven funding for higher education

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 36.4 74.3 117.2 264.9
Department of Education, Employment and Workplace Relations - - .. 0.4 1.8

The Government will provide $490.6 million over four years for the introduction of a demand‑driven funding system for domestic students at Australian public universities and the Bachelor Institute of Indigenous Tertiary Education. This will increase the opportunities available for Australians to undertake higher education by allowing universities to offer more Commonwealth‑supported places in response to student demand.

The demand‑driven entitlement model will be introduced in two stages. The first stage will lift the current caps on funding for overenrolments from 5 per cent to 10 per cent in 2010 and 2011, with the current funding floor maintained. These changes will also apply to the University of Notre Dame Australia. In the second stage, the current cap and floor on the number of undergraduate Commonwealth‑supported places will be removed. The current Student Learning Entitlement, which imposes a limit on the amount of Commonwealth‑funded study that a student can undertake, will also be abolished from 2012.

The revenue impact in this measure relates to amounts loaned under the Higher Education Loan Program (HELP) specifically the indexation on the outstanding HELP debt and associated loan fees. The additional public debt interest cost incurred by the Commonwealth in financing the loans is separately accounted for in the budget papers.

An Innovation and Higher Education System for the 21st Century — Education Investment Fund — Future Rounds

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - 350.0 250.0 125.0
Department of Innovation, Industry, Science and Research - - - - -
Total - - 350.0 250.0 125.0

The Government will provide $750.0 million over four years (including $25 million in 2013‑14) to fund future rounds from the Education Investment Fund.

$500 million will be allocated for Round 3 projects and $250 million will be partnered with up to $400 million allocated for research under the Clean Energy Initiative to form a $650 million Sustainability Round.

The two new funding rounds will provide higher education, research and vocational institutions with a further opportunity to bid for capital funding.

$200 million of Round 3 funding will be allocated to support projects which assist universities to adjust to reforms in the higher education sector. There will be a particular focus on supporting collaboration between universities and the vocational education sector and developing stronger research networks.

Funding from the EIF will be subject to endorsement by the EIF Advisory Board once suitable projects are identified.

The funding split between departments is indicative only. Actual funding will reflect the outcomes of the funding rounds.

See also the related expense measure titled Clean Energy Initiative.

An Innovation and Higher Education System for the 21st Century — Education Investment Fund — Round 2

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations 40.0 227.2 247.6 78.2 19.5
Department of Innovation, Industry, Science and Research - 159.6 79.2 82.8 -
Total 40.0 386.8 326.8 161.0 19.5

The Government will provide $934.2 million over four years from the Education Investment Fund (EIF) to contribute funding to successful projects from the second round of the EIF. These projects were assessed by the EIF Advisory Board, following the invitation for applications on 16 February 2009 by the Minister for Education, Employment and Workplace Relations and the Minister for Innovation, Industry, Science and Research.

The following projects will be funded:

Higher Education
  • Queensland University of Technology (Queensland) — Science and Technology Precinct — $75.0 million;
  • The University of Queensland (Queensland) — Advanced Engineering Building — $50.0 million;
  • Curtin University of Technology (Western Australia) — Engineering Pavilion — $20.5 million;
  • The Australian National University (Australian Capital Territory) — Stage 2 of the ANU Science Transformation: The Chemical Sciences Hub — $90.0 million;
  • La Trobe University (Victoria) — Rural Health School — $59.5 million;
  • The University of New South Wales (New South Wales) — Gateway @ College of Fine Arts — $48.0 million;
  • University of Ballarat (Victoria) — Science and Engineering Precinct — $40.0 million;
  • Charles Sturt University (New South Wales) — National Life Sciences Hub: An Integrated Science Hub in Food Security, Plant and Animal Health for Inland Australia — $34.0 million;
  • Charles Darwin University (Northern Territory) — Establishment of the Australian Centre of Indigenous Knowledge and Education — $30.7 million;
  • The University of Melbourne (Victoria) — Transforming Graduate Learning Spaces: A New Delivery Model for Professional Education in Australia — $16.3 million; and
  • Macquarie University (New South Wales) — Leadership in Advanced Surgical Education — $16.6 million.
Vocational Education and Training
  • Holmesglen Institute of TAFE (Victoria) — New Facility for Childhood Development, Vocational Colleges and Related Services — $16.8 million;
  • Central Gippsland Institute of TAFE (Victoria) — Chadstone Campus Development — $16.2 million;
  • TAFE NSW South Western Sydney Institute (New South Wales) — Macarthur Building Skills Centre — $9.9 million;
  • TAFE NSW Western Institute (New South Wales) — Heavy Vehicles Facility — $9.7 million;
  • Skillsets for a Low Carbon Economy (New South Wales) — $5.0 million;
  • Bendigo Regional Institute of TAFE (Victoria) — Training Facilities for the 'Traditional Trades' in Echuca — $5.0 million;
  • Energy Australia (New South Wales) — Silverwater Learning Centre — $25.0 million;
  • University of Ballarat (Victoria) — Manufacturing Technology Training Centres — $18.1 million;
  • Industries Services Training Pty Ltd (Northern Territory) — Mobile Trades Schools Training facilities — $7.9 million;
  • TAFE NSW Illawarra Institute (New South Wales) — Shellharbour Campus Children's Services Training Facility — $6.5 million;
  • Tocal College (New South Wales) — Rural VET Infrastructure to Ensure Social Inclusion, Sustainable Land Use, Lower Carbon Agriculture, and Efficient Water Use — $5.5 million; and
  • TAFE NSW Sydney Institute (New South Wales) — Sustainable Hydraulics — $6.4 million.
Research
  • La Trobe University (Victoria) — Institute for Molecular Sciences — $64.1 million;
  • The Queensland Institute of Medical Research (Queensland) — Smart State Medical Research Centre — $55.0 million;
  • Sydney Institute of Marine Science (New South Wales) — World Class Marine Research Facility — $19.5 million;
  • The University of Melbourne (Victoria) — The Centre for Neural Engineering — $17.5 million;
  • University of Tasmania (Tasmania) — Institute for Marine and Antarctic Studies — $45.0 million;
  • University of Wollongong (New South Wales) — Australian Institute for Innovation Materials: Processing and Devices — $43.8 million;
  • University of Western Sydney (New South Wales) — Centre of Climate Change and Energy Research — $40.0 million; and
  • Australian Synchrotron (Victoria) — National Centre for Synchrotron Science: Outreach and Research Support Facilities — $36.8 million.

An Innovation and Higher Education System for the 21st Century — funding for institutional performance targets

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - - 68.7 137.7

The Government will provide $206.4 million over two years from 2011‑12 to reward higher education institutions for the achievement of performance targets. This funding will encourage institutions to increase participation and attainment rates in priority areas including students from low socio‑economic backgrounds.

Performance payments of approximately 2.5 per cent of total government funding for teaching and learning will be provided, based on achievement against annual performance targets to be negotiated with each institution.

See also the related measure titled An Innovation and Higher Education System for the 21st Century support to increase participation of students from low socio‑economic status backgrounds in the Education, Employment and Workplace Relations portfolio.

An Innovation and Higher Education System for the 21st Century — Higher Education Equity Support Program — redirect funding

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - -6.0 -12.2 -12.4 -12.7

The Government will abolish the Higher Education Equity Support Program from 1 January 2010 and redirect the funding to support the participation of students from low socio‑economic status backgrounds.

The Higher Education Equity Support Program provides funding to eligible higher education providers to undertake activities that assist in removing barriers to access for disadvantaged students and promote equality of opportunity in higher education. Higher education providers will now be rewarded for excellence in teaching and learning through new performance funding arrangements.

This measure will provide savings of $43.3 million over four years to offset the cost of providing funding to support increased participation from students from low socio‑economic backgrounds.

See also the related expense measure titled An Innovation and Higher Education System for the 21st Century — support to increase participation of students from low socio‑economic backgrounds.

An Innovation and Higher Education System for the 21st Century — Higher Education Loan Program (HELP) repayment reduction for education and nursing graduates

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Australian Taxation Office - 0.8 0.5 1.4 2.6
Department of Education, Employment and Workplace Relations - - 3.7 25.6 48.1
Total - 0.8 4.2 27.0 50.6

The Government will provide $82.6 million over four years to reduce the required HELP debt repayments for education and nursing gradates working in these professions. HELP debts will be reduced by $1,536 (indexed annually by the Consumer Price Index) for each year in which the graduates work in these professions, up to a maximum of five years. This will encourage students to enter and remain employed in the teaching and nursing professions.

Students who graduate from second semester 2009 onward will be eligible to receive the reduction.

See also the related measure titled An Innovation and Higher Education System for the 21st Century — increase in the maximum annual student contribution amount for education and training.

An Innovation and Higher Education System for the 21st Century — increase in the maximum annual student contribution amount for education and nursing

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 3.1 6.7 11.1 15.0
Department of Education, Employment and Workplace Relations - - 0.2 0.8 2.0

The Government will increase the maximum annual student contribution amount for education and nursing units of study, which will increase the funding available to the providers of education and nursing courses. Instead of a lower student contribution the Government will provide HELP debt repayments for education and nursing graduates who work in these professions.

The maximum contribution will increase from the National Priority Band ($4,162 in 2009) to Band 1 ($5,201 in 2009) and will apply to students commencing study from 1 January 2010.

The impact on the fiscal balance from providing additional HELP loans to students will be $32.9 million over four years.

The revenue impact in this measure relates to amounts loaned under the HELP, specifically the indexation on the outstanding HELP debt and associated loan fees. The additional public debt interest cost incurred by the Australian Government in financing the loans is separately accounted for in the budget papers.

See also the related measure titled An Innovation and Higher Education System for the 21st Century — Higher Education Loan Program (HELP) repayment reduction for education and nursing graduates. This related measure will ensure that teachers and nurses not working in their profession are better off after these changes.

An Innovation and Higher Education System for the 21st Century — Learning and Teaching Performance Fund — redirect funding

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - -38.1 -77.1 -95.0 -113.3

The Government will redirect funding from the Learning and Teaching Performance Fund.

The Learning and Teaching Performance Fund was introduced in 2003 to reward universities for excellence in learning and teaching for undergraduates. Universities will now be rewarded for excellence in teaching and learning through new performance funding arrangements.

This measure will provide savings of $323.6 million over four years to offset part of the cost of the Government's response to the Review of Australian Higher Education.

See also the related expense measures titled An Innovation and Higher Education System for 21st Century — funding for institutional performance targets and An Innovation and Higher Education System for 21st Century — conditional funding and revised indexation arrangements.

An Innovation and Higher Education System for the 21st Century — national quality and regulatory agency for higher education — establishment

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 10.0 14.3 15.3 21.2

The Government will provide $60.8 million over four years to establish a new national quality and regulatory agency for higher education.

The agency will develop a national, standards‑based quality and regulatory framework which will streamline current regulatory arrangements and reduce duplication across States and Territories. This will provide consistency in accreditation and in the assessment of institutional performance. The agency will help lift the quality of our universities as we move towards a demand‑driven university system.

See also the related savings measure titled An Innovation and Higher Education System for the 21st Century — Australian universities quality agency — redirect funds to establish a national quality and regulatory agency for higher education.

An Innovation and Higher Education System for the 21st Century — redirect funds to establish the Structural Adjustment Fund

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - -19.9 -28.4 -15.9 -

The Government will abolish the Diversity and Structural Adjustment Fund from 1 January 2010. This measure will provide savings of $64.2 million over three years to partly offset the cost of providing structural adjustment assistance to universities, provided through the new Structural Adjustment Fund.

See also related expense measure titled An Innovation and Higher Education System for the 21st Century — Structural Adjustment Fund.

An Innovation and Higher Education System for the 21st Century — remove the loan fee on OS‑HELP loans

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 0.2 0.4 0.2 0.3
Department of Education, Employment and Workplace Relations - -1.6 -4.3 -5.0 -5.5

The Government will remove the 20 per cent loan fee on OS‑HELP loans for students commencing study from 1 January 2010. OS‑HELP is a loan scheme to assist eligible undergraduate students to undertake some of their course of study overseas.

Removing the 20 per cent loan fee is expected to encourage more Australian students to undertake overseas study and increase the take‑up of OS‑HELP loans.

Amounts loaned under the Higher Education Loan Program (HELP) are treated as financial assets and therefore only the concessional interest cost of offering the loan impacts on the fiscal balance. Indexation on the outstanding HELP debt and associated loan fees are treated as revenue. The additional public debt interest cost incurred by the Australian Government in financing the loans is separately accounted for in the budget papers.

An Innovation and Higher Education System for the 21st Century — Structural Adjustment Fund

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 50.5 70.7 56.0 25.0

The Government will provide $202.1 million over four years to establish a new Structural Adjustment Fund to assist higher education institutions adapt to the introduction of a demand‑driven system for Australian Government funded higher education places for Australian students. The Fund will be established in 2009‑10.

See also the related expense measure titled An Innovation and Higher Education System for the 21st Century — redirect funds to establish the Structural Adjustment Fund in the Education, Employment and Workplace Relations portfolio.

An Innovation and Higher Education System for the 21st Century — Student Income Support — abolition of Commonwealth Education Costs Scholarships and Commonwealth Accommodation Scholarships programs

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - -54.2 -119.8 -215.9 -264.1

The Government will redirect funding by abolishing the Commonwealth Education Costs Scholarships and Commonwealth Accommodation Scholarships programs from 1 January 2010. This measure will provide savings of $654.1 million over four years to help offset the introduction of the new Education Allowance and Relocation Allowance.

Current Commonwealth Scholarship holders will continue to be supported and their payments will not be affected.

See also the related expense measures titled An Innovation and Higher Education System for the 21st Century — Student Income Support — Education Allowance and An Innovation and Higher Education System for the 21 st Century — Student Income Support — Relocation Allowance in the Education, Employment and Workplace Relations portfolio.

An Innovation and Higher Education System for the 21st Century — Student Income Support — abolition of Commonwealth Scholarships for Associate Degrees program

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - -13.6 -13.8 -14.1 -14.3

The Government will redirect funding by abolishing Commonwealth Scholarships for Associate Degrees. This measure will contribute to reforms being made by the Government to increase access to student income support for students who need it most, including those from low socio‑economic backgrounds, rural and regional areas and Indigenous students.

All current recipients will continue to receive their scholarship payments.

This measure will provide savings of $55.7 million over four years which will be redirected to fund changes to the student income support system.

See also the related expense measures titled An Innovation and Higher Education System for the 21st Century — Student Income Support —Education Allowance and An Innovation and Higher Education System for the 21st Century — Student Income Support — Relocation Allowance in the Education, Employment and Workplace Relations portfolio.

An Innovation and Higher Education System for the 21st Century — Student Income Support — administrative costs

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Centrelink - 20.0 6.6 6.7 6.7
Department of Education, Employment and Workplace Relations - 0.5 0.2 0.2 0.2
Total - 20.5 6.8 6.9 6.9

The Government will provide $41.1 million over four years for the administrative costs associated with the Student Income Support package, including information technology redesign and communication strategies.

An Innovation and Higher Education System for the 21st Century — Student Income Support — increase Youth Allowance Parental Income Test threshold

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 122.3 307.9 315.2 322.3
Department of Families, Housing, Community Services and Indigenous Affairs - -55.4 -147.6 -150.9 -154.0
Total - 66.9 160.4 164.3 168.3

The Government will provide $559.9 million over four years to relax the parental income test to improve student access to the Youth Allowance.

The Parental Income Test threshold applying under Youth Allowance (currently $32,800) will be increased to align with the income test threshold applying to the maximum rate of Family Tax Benefit (FTB) Part A (currently $42,559). The threshold will be linked to the FTB index (the Consumer Price Index) to ensure consistency is maintained over time. The Youth Allowance per child taper rate will be replaced with a 20 per cent family taper rate.

All changes will take effect from 1 January 2010.

This measure will help better target student income support to those most in need, including students from low socio‑economic backgrounds and other disadvantaged groups.

An Innovation and Higher Education System for the 21st Century — Student Income Support — Masters by coursework

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - - 12.4 60.3

The Government will provide $72.7 million over two years to extend student income support to all coursework Masters program students from 1 January 2012.

This funding will broaden access to student income support in recognition of the value of Masters level study.

An Innovation and Higher Education System for the 21st Century — Student Income Support — means test exemption for equity and merit‑based scholarships

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 1.3 2.6 2.6 2.6

The Government will provide $9.1 million over four years to exempt equity and merit‑based scholarship income from means testing for the purposes of student income support payments from 1 January 2010. The exemption will be available up to the equivalent indexed value of Commonwealth Scholarships ($6,622 per year in 2009) and will apply to scholarship holders for higher education, vocational education and training, school and Australian Apprenticeships.

This measure will help ensure that all scholarship recipients, whether in receipt of a Commonwealth scholarship or a scholarship provided by the university, are treated alike in terms of eligibility for student income support.

An Innovation and Higher Education System for the 21st Century — Student Income Support — reduction in the age of independence

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 1.9 13.4 40.0 83.4
Department of Families, Housing, Community Services and Indigenous Affairs - -1.3 -4.6 -13.5 -20.6
Total - 0.6 8.8 26.5 62.8

The Government will provide $98.7 million over four years to progressively reduce the Youth Allowance age of independence for students from 25 years to 22 years.

The age of independence will be reduced from 25 years in 2009 to 24 years in 2010, 23 years in 2011 and 22 years from 2012. Independent students are not subject to the parental income and assets test.

This measure, as part of the income support package, will help better target student income support to those most in need, including students from low socio‑economic backgrounds and other disadvantaged groups.

An Innovation and Higher Education System for the 21st Century — Student Income Support — relax personal income test

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - 55.5 114.6 117.2

The Government will provide $287.3 million over three years from 2010‑11 to increase the level of personal income at which Youth Allowance and Austudy begin to be reduced from $236 to $400 per fortnight. Payments will then be reduced by $0.50 for every dollar of income earned between $400 and $480 per fortnight and by $0.60 for every dollar earned in excess of $480 per fortnight.

The increase in the income thresholds will take effect from 1 January 2011 and will mean that students can earn more before their student support payments are reduced. The thresholds will be indexed annually according to movements in the Consumer Price Index.

An Innovation and Higher Education System for the 21st Century — Student Income Support — Relocation Scholarship

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 24.7 50.8 54.8 60.2
Department of Veterans' Affairs - 0.6 0.7 0.7 0.7
Total - 25.3 51.5 55.5 60.9

The Government will provide $193.2 million over four years to introduce a Relocation Allowance for eligible Youth Allowance and ABSTUDY students and relocate to attend university.

This measure will replace the existing Commonwealth Accommodation Scholarships (CAS) and provide dependent students who live away from home and independent students who are unable to live at home with a $4,000 allowance in their first year at university and $1,000 in each year thereafter. Existing CAS holders will continue to receive support under their current arrangements.

The funding includes $2.7 million over four years to extend access to the Relocation Allowance to eligible recipients of the Veterans' Children Education Scheme and the Military Rehabilitation and Compensation Act 2004 Education and Training Scheme.

See also the related expense measure titled An Innovation and Higher Education System for the 21st Century — Student Income Support —Education Allowance and the related savings measures titled An Innovation and Higher Education System for the 21st Century — Student Income Support — Commonwealth Education Costs Scholarships and Commonwealth Accommodation Scholarships and An Innovation and Higher Education System for the 21st Century — Student Income Support — abolition of Commonwealth Associate Degrees program.

An Innovation and Higher Education System for the 21st Century — Student Income Support — Student Start‑Up Scholarship

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 163.3 335.6 360.3 393.0
Department of Veterans' Affairs - 1.2 2.0 2.1 2.1
Total - 164.6 337.6 362.3 395.1

The Government will provide $1,259.6 million over four years to introduce a new Student Start‑Up Scholarship for all university students receiving student income support. The Student Start‑Up Scholarship will come into effect on 1 January 2010 and will initially be set at $2,254 in 2010 then adjusted annually by the Consumer Price Index. The allowance will be paid in two six‑month instalments.

The funding includes $7.4 million to extend access to the Student Start‑Up Scholarship to eligible recipients of the Veterans' Children Education scheme and the Military Rehabilitation and Compensation Act 2004 Education and Training scheme.

This measure will replace the existing Commonwealth Education Costs Scholarship. Students currently receiving Commonwealth Scholarships will be ineligible but their existing scholarships will be grandfathered. Indigenous scholarships will remain unchanged.

See also the related expense measures titled An Innovation and Higher Education System for the 21st Century — Student Income Support — Relocation Allowance, An Innovation and Higher Education System for the 21st Century — Student Income Support — Commonwealth Education Costs Scholarships and Commonwealth Accommodation Scholarships and An Innovation and Higher Education System for the 21st Century — Student Income Support — abolition of Commonwealth Scholarships for Associate Degrees program in the Education, Employment and Workplace Relations Portfolio.

An Innovation and Higher Education System for the 21st Century — Student Income Support — Youth Allowance workforce participation criteria

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - -132.7 -552.2 -561.8 -573.1

The Government will tighten the workforce participation criteria for establishing independence under Youth Allowance by removing the following two eligibility criteria:

  • the criterion that the recipient worked part‑time for at least 15 hours per week for two years or more since leaving school; and
  • the criterion that the recipient earned, in an 18‑month period since leaving school, an amount equivalent to 75 per cent of the maximum rate of pay under Wage Level A of the Australian Pay and Classification Scale generally applicable to trainees (in 2009 this requires earnings of $19,532).

These changes will apply from 1 January 2010 and will not apply to students who have already satisfied the workforce participation criteria and are already independent.

The measure will provide savings of $1,819.9 million over four years, which will be redirected to help fund other improvements to student income support.

An Innovation and Higher Education System for the 21st Century — support to increase participation of students from low socio‑economic status backgrounds

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 29.4 85.8 144.7 176.9

The Government will provide $436.9 million over four years to universities to support increased participation from students from low socio‑economic status backgrounds. Funding equivalent to 2 per cent of teaching and learning grants will be provided in 2010, rising to 3 per cent in 2011 and 4 per cent in 2012.

The additional funding will provide $324.7 million to support a new financial loading for students from low socio‑economic status backgrounds and provide $108.2 million to universities to build long‑term partnerships with schools and communities which lift the aspirations of students from low socio‑economic and other disadvantaged backgrounds. This funding includes $4.0 million over four years in departmental costs.

See also the related measure titled An Innovation and Higher Education System for the 21st Century — funding for institutional performance targets in the Education, Employment and Workplace Relations portfolio and the related savings measure titled An Innovation and Higher Education System for the 21st Century — higher education equity support — redirect funding.

An Innovation and Higher Education System for the 21st Century — Workplace Productivity Program

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - -0.9 -15.7 -30.4 -31.0

The Government will abolish the Workplace Productivity Program from 1 January 2010. The Workplace Productivity Program was introduced in the 2003‑04 Budget to encourage higher education providers to progress workplace reform.

This measure will provide savings of $78 million over four years which will be used to offset some of the costs of the considerable additional investment being made by the Government in higher education.

Business‑School Connections Roundtable

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - - - -

The Government will provide $0.45 million to sponsor a Business‑School Connections Roundtable and to develop a practical strategy to foster partnerships between schools, business and the community. The roundtable will consist of representatives from business, community and education organisations and will oversee the development of a strategy to ensure all secondary schools benefit from a business connection. This initiative is part of the Government's broader commitment to stronger business‑schools linkages to create a broad and supportive environment for students that involves business, the community and parents in schooling.

The cost of this measure will be met from within the existing resourcing of the Department of Education, Employment and Workplace Relations.

This measure responds to key priorities from the productivity stream of the Australia 2020 Summit.

Further information can be found in the press release of 23 April 2009 issued by the Minister for Education.

Child Care Cost Estimator — improvement

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Centrelink - 2.4 - - -
Department of Education, Employment and Workplace Relations - 0.1 - - -
Total - 2.5 - - -

The Government will provide $2.5 million in 2009‑10 to improve the existing estimator used in Centrelink, Family Assistance and Child Support calculations.

In addition to providing estimates of possible entitlements to a Centrelink payment or Family Assistance, the new Child Care Cost Estimator will give families a clearer idea of the levels of Child Care Benefit and Child Care Tax Rebate assistance they may be entitled to, and what their out‑of‑pocket child care expenses may be.

Families will be able to use service fee data from information available on www.mychild.gov.au, a quote from a child care service provider, or their own estimate. The enhanced estimator will be available online from 1 January 2010.

Council of Australian Governments — Skills Recognition Taskforce

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations 1.1 4.8 - - -

The Government will provide $5.9 million over two years for the ongoing operation of the COAG Skills Recognition Taskforce.

The COAG Skills Recognition Taskforce supports the Intergovernmental Agreement for a national licensing system for a range of economically important trades and other occupations, removing inconsistencies across state borders and allowing for a more mobile workforce.

Disability Employment Services — new delivery model

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - - - -
Centrelink - - - - -
Total - - - - -

The Government will implement reforms to the disability employment services from 1 March 2010 with total funding of $1.2 billion over four years. The new contracts will run over the period from 1 March 2010 to 30 June 2012. The total funding includes provision for a tender to select suitable providers, assistance to transition job seekers to the new program, and monitoring and evaluation.

The reforms will include an increased focus on training and skills development and the needs of employers; more flexibility in the delivery of employment services for people with a disability; and a reduction in the administrative requirements for employment services providers.

The new Disability Employment Services program will replace the existing Vocational Rehabilitation Services and the Disability Employment Network programs, and assist people with a disability to find and maintain employment. Jobseekers with higher level needs will also be able to access long‑term ongoing support if required.

Further information can be found in the press release of 7 April 2009 issued by the Minister for Employment Participation.

Provision for this funding has already been included in the forward estimates.

Drought Assistance — Assistance for Isolated Children Scheme — extension

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 7.8 1.9 - -
Centrelink - 0.5 - - -
Total - 8.3 1.9 - -

The Government will provide $10.1 million over two years to extend the Distance Education Allowance Supplement of $1,061 per annum per student until 30 June 2010, the Additional Boarding Allowance of $1,000 per annum per student and the consequential ABSTUDY Boarders' rate for School Fees Allowance until 31 December 2010.

The extension of these measures, which are specifically targeted at geographically isolated families, will help ensure that current levels of financial assistance are maintained for rural families who may be experiencing financial hardship as a result of living in drought‑affected areas.

Drought Assistance — schools — extension

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 26.0 - - -

The Government will provide $26.0 million in 2009‑10 to extend the existing Drought Assistance for Schools program for 12 months. This program provides grants of up to $10,000 per school per annum to assist the operation of government and non‑government schools in Exceptional Circumstances‑declared areas. The extension of this program until 30 June 2010 will assist rural families experiencing financial hardship as a result of the drought to meet ongoing education expenses.

Expansion of income contingent loans to state‑subsidised students in vocational education and training

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations 1.8 6.7 7.2 8.1 9.2
Australian Taxation Office 3.4 1.5 1.9 1.9 1.9
Total 5.2 8.2 9.1 10.0 11.1
Department of Education, Employment and Workplace Relations - - 1.3 2.8 4.5

The Government will provide income contingent loans to state‑subsidised diploma and advanced diploma students in Victoria, but without the loan fee and credit transfer requirements applying under VET FEE‑HELP.

Under existing arrangements, VET FEE‑HELP is available to full‑fee students in diploma or advanced diploma courses where significant credit towards a university degree will be provided by undertaking the course.

The Victorian Government has agreed to make a contribution of $22.4 million over the first four years of the scheme. These payments from Victoria are separately accounted for in the Budget papers.

Amounts loaned under the Higher Education Loan Program (HELP) are treated as financial assets and therefore only the concessional interest cost of offering the loan impacts on the fiscal balance. Indexation on the outstanding HELP debt and associated loan fees are treated as revenue. The additional public debt interest cost incurred by the Australian Government in financing the loans is separately accounted for in the budget papers.

See also the related expense measure titled Expansion of VET FEE‑HELP for full‑fee students.

Expansion of VET FEE‑HELP for full‑fee students

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 18.8 21.8 25.2 29.2
Department of Education, Employment and Workplace Relations - 21.8 31.7 43.1 55.7

To complement the expansion of income contingent loans to state‑subsidised vocational education and training students in Victoria, the Government will extend VET FEE‑HELP for full‑fee diploma and advanced diploma students in Victoria. This will be achieved by waiving the normal requirement for access to VET FEE‑HELP that the course guarantees significant credit towards a university course.

Amounts under the Higher Education Loan Program (HELP) are treated as financial assets and therefore only the concessional interest cost of offering the loan impacts on the fiscal balance. Indexation on the outstanding HELP debt and associated loan fees are treated as revenue. The additional public debt interest cost incurred by the Australian Government in financing the loans is separately accounted for in the Budget papers.

See also the related expense measure titled Expansion of income contingent loans to state‑subsidised students in vocational education and training.

Fair Work Australia — implementation of workplace relations legislation

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Office of the Fair Work Ombudsman - 25.1 24.2 22.5 19.7
Workplace Authority - 20.4 - - -
Fair Work Australia - 11.2 7.1 6.5 6.6
Total - 56.6 31.3 29.0 26.3
Fair Work Australia - 2.3 1.0 - -
Office of the Fair Work Ombudsman - 2.3 1.0 - -
Total - 4.5 2.0 - -

The Government will provide $149.7 million (including capital of $6.5 million) over four years for the implementation of the Government's new workplace relations arrangements.

Fair Work Australia and the Office of the Fair Work Ombudsman will commence on 1 July 2009 rather than 1 January 2010, as previously announced. This measure will provide funding for:

  • processing of an increased number of collective agreements, including expired agreements expected to be renegotiated once the new legislation takes effect;
  • administration of an increased number of claims under the new unfair dismissal protection law;
  • implementation of the 'better off overall' test to ensure that employees covered by an agreement are better off in comparison to the relevant awards;
  • increased information advisory services, including an information line that will integrate information services currently provided by existing agencies and support the volume of calls expected with the commencement of the new law;
  • education activities to assist employers and employees in understanding the new workplace relations legislation; and
  • an increased number of Fair Work inspectors who will assist employers, employees and organisations to comply with the new workplace relations laws.

In addition, the measure includes funding for the Workplace Authority which will continue to operate for a limited period in 2009‑10 to finalise approval of Individual Transitional Employee Agreements lodged before 31 December 2009.

See also the related expense measure titled Fair Work Australia — information and education in the Education, Employment and Workplace Relations portfolio.

This is a saving of $197.9m (over four years) when compared to the previous forward estimates.

Fair Work Australia — information and education

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations 6.0 8.3 - - -

The Government will provide $14.3 million over two years for information and education activities to support the introduction of the new workplace relations system

This measure includes grants to selected organisations to run education and information services to assist employees, employers and small businesses in understanding the new workplace relations laws with a focus on collective bargaining and the Small Business Fair Dismissal Code.

More information can be found in the press release of 13 April 2009 issued by the Minister for Employment and Workplace Relations.

See also the related measure titled Fair Work Australia − implementation of workplace relations legislation in the Education, Employment and Workplace Relations portfolio.

Family centred employment pilot project

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - - - -

The Government will provide $7.2 million over four years from 2008‑09 to conduct a pilot project that will assist disadvantaged families by supporting at least one family member into employment and/or education.

The pilot will be offered in three locations targeting families with children under the age of 16 years where no parent has worked for at least 12 months. Family‑based personal development and employment plans will be developed with each participating family. These plans will incorporate the family's needs in a range of areas such as accommodation, health, employment, education and training.

The objective of the pilot is to test integrated, family‑centred service models for jobless families.

The cost of this measure will be met from within the existing resources of the Department of Education, Employment and Workplace Relations.

Golden Gurus — mentoring support to business and community

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - - - -

The Government will provide $0.4 million over three years to build on and strengthen existing activities which engage skilled retired Australians aged 55 years and over (Golden Gurus) to provide mentoring support to small businesses and the community. This measure will establish a national Golden Guru community to connect Golden Guru mentors with small business and the community sector. Individual state and territory schemes will be invited to join the national Golden Guru community.

The cost of this measure will be offset by savings within the Department of Education, Employment and Workplace Relations.

This measure delivers on an Australia 2020 Summit productivity stream idea.

Further information can be found in the press release of 23 April 2009 issued by the Minister for Education, Employment and Workplace Relations.

Income support payments — asset test hardship provisions — modification

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 0.9 1.0 1.1 1.2

The Government will increase the readily available funds limit, which determines whether a person can access the assets test hardship provisions to receive an income support payment, at a cost of $4.2 million over four years. Readily available funds are assets that can be converted to cash quickly and include term deposits, shares and some insurance bonds.

This measure increases the amount of readily available funds an income support recipient can have when relying on the hardship provisions. For instance, the limit for a single person with no children receiving Newstart Allowance will increase from $6,000 to $11,785.80, and for a couple it will increase from $10,000 to $21,268.00. This measure will affect recipients of non‑student income support payments including Newstart Allowance and Parenting Payment and aligns the limit with those in place for the hardship provisions for other welfare payments.

Job capacity assessments — additional assessments

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 182.8 167.7 167.7 177.6
Centrelink - 3.1 -1.9 -2.0 -2.0
Department of Human Services - -132.0 -125.7 -125.6 -126.5
Total - 53.8 40.1 40.1 49.1
Department of Education, Employment and Workplace Relations - .. - - -

The Government will provide additional funding of $183.2 million over four years to meet an expected increase in the number of job capacity assessments required. This includes funding of $32.8 million over four years for a tender process to secure and administer new contracts with job capacity assessment service providers from 1 July 2010. Funding for the tender process will include $12,000 in capital in 2009‑10.

From 1 July 2009 the administration of the job capacity assessment program will be transferred from the Department of Human Services to the Department of Education, Employment and Workplace Relations, to consolidate employment assessment and referral services and reduce the cost of administration.

Jobs and Training Compact — monitoring and evaluation

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 1.7 2.2 - -

The Government will provide $3.9 million over two years to monitor and evaluate major elements of the Jobs and Training Compact.

This measure will assess the impact on employment of the Local Jobs and Get Communities Working elements of the Jobs Fund. It will also assess the effectiveness of the Local Employment Coordinators, Connecting People with Job Services, and Early Access to Employment Services for Redundant Workers initiatives.

See also the related expense measures titled Jobs and Training Compact — Jobs Fund, Jobs and Training Compact — Local Employment Coordinators, Jobs and Training Compact — connecting people with job services, and Jobs and Training Compact — early access to employment services for redundant workers in the Education, Employment and Workplace Relations portfolio.

Jobs and Training Compact — Building the Basics — Language, Literacy and Numeracy — additional training places and workforce development

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations 6.5 16.5 5.2 - -

The Government will provide $28.2 million over three years to provide 5,888 additional language, literacy and numeracy (LLN) training places for adults aged 25 years and over. The funding will also assist in developing the LLN workforce by increasing the number of trainers and encouraging the acquisition of further qualifications. The extra training places will comprise 4,138 places for job seekers, 1,500 Workplace English Language and Literacy places to provide employees with vocationally‑oriented intensive training, and 250 places in short courses designed to attract disengaged adults into further LLN training. This measure will assist adult workers who are vulnerable to redundancy or have recently been retrenched to remain in or return to the workforce.

Jobs and Training Compact — connecting people with job services

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations 2.0 3.2 - - -

The Government will provide $5.2 million over two years to establish a national hotline and website to link people with job services.

This measure will provide a central point for information, advice and support for Australians seeking education, training and employment options. The website will guide individuals through the range of assistance available and connect them with employment and training opportunities. The call centre will provide an alternative means of access for those not able to use the website.

Jobs and Training Compact — early access to employment services for redundant workers

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations 36.8 65.7 126.7 69.3 -

The Government will provide $298.5 million over four years to enable redundant workers to gain early access to employment services to assist them to find employment or an appropriate education or training course as quickly as possible.

All redundant workers will have access to intensive personalised assistance, regardless of their eligibility for government benefits or level of job readiness. Services available to redundant workers include a comprehensive skills assessment, career advice and targeted referral to education and training.

This measure allows workers made redundant on or after 24 February 2009 to access the higher level of assistance from 1 April 2009. This measure will cease on 31 March 2011.

Further information can be found in the press release of 24 February 2009 issued by the Prime Minister.

Jobs and Training Compact — improved participation requirements for 15 to 20 year olds

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 100.6 41.0 25.4 -8.6
Department of Families, Housing, Community Services and Indigenous Affairs - -18.9 -32.3 -32.4 -32.9
Total - 81.6 8.7 -7.0 -41.4

The Government will strengthen participation requirements for young unemployed Australians aged 15 to 20 years old seeking to receive Youth Allowance (Other) or Family Tax Benefit Part A at a cost of $41.9 million over four years.

Young people without a Year 12 or equivalent qualification will be required to undertake full time education or training in order to receive Youth Allowance (Other) or for their families to receive Family Tax Benefit (Part A) for that child. Where study or training is undertaken on a part time basis, additional activities will be required to fulfil their participation requirements.

This measure forms part of the Compact with Young Australians established by COAG on 30 April 2009, which guarantees an education or training place for every Australian under 25. This measure will help ensure that young people 15 to 20 years old are either working or working towards a year 12 or equivalent qualification.

The measure will commence from 1 July 2009 for new Youth Allowance (Other) claimants and from 1 January 2010 for all Family Tax Benefit (Part A) recipients and existing Youth Allowance (Other) recipients.

Jobs and Training Compact — improvements to assistance for job seekers

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations 21.0 0.1 0.1 - -

The Government will provide $21.2 million over three years to ensure job seekers have more streamlined access to job search assistance through improvements to the Job Network.

This measure includes:

  • changing the existing Job Seeker Account to allow employment service providers to allocate funding more flexibly across all of their service delivery sites, rather than being required to quarantine funding to specific sites; and
  • providing greater flexibility in the use of funding for the Wage Assist wage subsidy program.

This brings the Job Seeker Account and Wage Assist provisions of Job Network into line with the changes to employment services to be introduced from 1 July 2009 under Job Services Australia.

In addition, the measure includes changes to fees paid to Job Network providers, in response to the current economic circumstances, by:

  • providing a one‑off increase in the quarterly service fee in recognition of the recent increases in job seeker numbers; and
  • changing outcome fee arrangements in light of reduced job vacancies, by allowing extra time for providers to find alternative work for job seekers displaced during a specified outcome period and still qualify for an outcome payment.

Further information can be found in the press release of 24 February 2009 issued by the Minister for Employment Participation.

Jobs and Training Compact — information campaign on employment services and jobs

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations 8.6 7.2 - - -

The Government will provide $15.8 million over two years for a national communication campaign. The campaign will focus on increasing awareness of the assistance available for unemployed people and recently retrenched workers, including services available in Jobs Services Australia (formerly Job Network), the new Disability Employment Services and training and reskilling initiatives.

Jobs and Training Compact — Jobs Fund

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations 11.0 211.8 176.4 0.8 -
Department of Infrastructure, Transport, Regional Development and Local Government 0.3 119.1 70.5 0.1 -
Department of the Environment, Water, Heritage and the Arts 6.2 53.5 0.4 - -
Total 17.4 384.3 247.3 1.0 -

The Government will provide $650.0 million over four years to establish a Jobs Fund that will support jobs and skill development through projects that build community infrastructure and social capital in local communities.

The Jobs Fund will provide grants to support innovative social or infrastructure projects that create jobs and employment opportunities in communities most affected by the economic downturn. Projects will also be expected to deliver positive environmental, heritage and social outcomes.

The Government will allocate:

  • $300.0 million for the Local Jobs program to invest in community and other projects, in one‑off grants of up to $2.0 million, that help protect the environment, promote sustainability or build local infrastructure. $60.0 million is to be set aside for heritage related projects including the preservation of national heritage‑listed buildings and historic properties managed by the National Trust, community heritage projects including locally significant buildings, and natural heritage projects such as walking trails and the upgrade of public spaces. In addition, $40.0 million is to be set aside for the construction of bike paths.
  • $200.0 million for the Get Communities Working program, which will invest in local council and not‑for‑profit projects of up to $2.0 million to upgrade vital community facilities and build community capacity.
  • $150.0 million for Infrastructure Employment Projects to support infrastructure projects that target local community needs and create jobs in construction, related industries and the general community in areas that are vulnerable to the impact of large scale losses of employment as a result of the economic downturn.

The Local Jobs program was agreed with the Australian Greens as part of negotiating the Nation Building and Jobs Plan announced on 3 February 2009.

The Get Communities Working program was agreed with Senator Steve Fielding as part of negotiating the Nation Building and Jobs Plan announced on 3 February 2009.

The Local Employment Coordinators will work with community stakeholders to identify and develop projects for consideration for the Local Jobs and Get Communities Working streams.

See also the related expense measure titled Jobs and Training Compact — Local Employment Coordinators in the Education, Employment and Workplace Relations Portfolio.

Further information can be found in the press release of 5 April 2009 issued by the Prime Minister.

Jobs and Training Compact — liquid assets waiting period — temporary change

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations 3.1 12.2 9.2 - -
Centrelink 1.0 .. .. .. ..
Total 4.1 12.3 9.2 0.0 0.0

The Government will amend the liquid assets waiting period for people who have become unemployed, including retrenched workers, so they can access income support more quickly, at a cost of $25.6 million over five years.

This measure will double the maximum amount of liquid assets an eligible person can have before they are subject to a waiting period to gain access to income support. Liquid assets are assets in the form of cash or those which can be easily converted into cash, including shares and term deposits. A single person without dependants will be able to have an increased maximum of $5,000 in liquid assets and couples can have $10,000. The change will affect applicants for Newstart Allowance, Youth Allowance, Sickness Allowance and Austudy payments.

This change started on 1 April 2009 and will cease on 31 March 2011.

This measure was agreed with the Australian Greens as part of negotiating the Nation Building and Jobs Plan announced on 3 February 2009.

Further information can be found in the press release of 12 March 2009 issued by the Minister for Employment Participation.

Jobs and Training Compact — Local Employment Coordinators

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - - - -

The Government will provide $20.0 million over three years from 2008‑09 to engage Local Employment Coordinators in priority regional areas.

The coordinators will manage and drive local responses to unemployment. Assistance will be offered to streamline service delivery, better link employment and training services, facilitate training and upskilling opportunities and ensure opportunities provided by government programs and the private sector are used to boost the local economy.

Provision for this funding has already been included in the forward estimates.

See also the related expense measure Jobs and Training Compact — Jobs Fund in the Education, Employment and Workplace Relations portfolio.

Further information can be found in the press release of 5 April 2009 issued by the Prime Minister.

Jobs and Training Compact — Pathways to Skills: Australian Apprenticeships Access Program — additional places

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 21.2 6.2 6.4 -

The Government will provide $33.7 million over three years to fund an additional 5,500 training places in 2009‑10 for vulnerable young job seekers as part of an enhanced Australian Apprenticeships Access Program. The new places will provide individualised support and training to vulnerable jobseekers who are most likely to be affected by the impact of the economic downturn.

The 5,500 places will provide individualised support and training and comprise:

  • 3,650 places for 19 to 24 year‑old job seekers who are most likely to be affected by the impact of the economic downturn at a cost of $10.9 million; and
  • 1,850 places for retrenched workers, at a cost of $3.5 million.

The measure will also enhance the Australian Apprenticeships Access Program, for the new and existing places, through more tailored support for individual needs, improved research and greater incentives for access brokers to achieve positive outcomes for job seekers at a cost of $19.4 million.

The funding for additional places for 19 to 24 year‑old jobseekers and enhancements to the program elements can be found in the press release of 4 March 2009 issued by the Prime Minister and Minister for Education, Employment and Workplace Relations.

Jobs and Training Compact — Productivity Places Program — 10,000 additional places

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 77.2 - - -

The Government will provide $77.2 million in 2009‑10 to offer an additional 10,000 training places at Certificate III‑level qualification or higher under the Productivity Places Program.

This measure increases the number of training places provided under the Skilling Australia for the Future initiative to more than 700,000 over the five years from 2007‑08 to 2011‑12 and will help to ensure that Australians can develop the skills that industry needs and allow newly redundant workers to upgrade their skills.

Jobs and Training Compact — Securing Australian Apprenticeships — securing completions through RTOs

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations 0.9 4.5 4.3 - -

The Government will provide $9.7 million over three years to fund Registered Training Organisations to deliver required off‑the‑job training where an Australian apprentice has been made redundant and cannot complete their required training with an employer. This measure will allow Australian Apprentices at the Certificate III, IV, Diploma and Advanced Diploma level to maintain the value of their investment in training by allowing them to complete the off‑the‑job component of their training arrangements through a non‑indentured pathway.

The initiative commences 1 July 2009 and runs for a two‑year period. Further information can be found in the press release of 19 February 2009 issued by the Minister for Education, Employment and Workplace Relations.

Jobs and Training Compact — Securing Australian Apprenticeships Re‑commencements — all employees

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations 38.9 72.5 34.2 - -

The Government will provide $145.6 million over three years to provide additional incentive payments for all employers who employ out‑of‑trade apprentices. This measure allows out‑of‑trade apprentices and trainees to remain connected with the workforce and maintain their training. Additional payments of up to $2,800 will be available to employers, including Group Training Organisations, eligible for standard incentives, who take on an out‑of‑trade Australian Apprentice at the Certificate III or IV level, in skills shortage areas as defined by the National Skills Needs List, or at the Diploma or Advanced Diploma level.

Payments will be backdated to 1 January 2009 and will be made through Australian Apprenticeship Centres. These incentives will be available for two years until 31 December 2010.

Further information can be found in the press release of 19 February 2009 issued by the Minister for Education, Employment and Workplace Relations.

Jobs and Training Compact — Training Supplement

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 46.0 25.0 3.1 -
Centrelink 0.2 5.5 2.1 1.2 -
Total 0.2 51.5 27.1 4.3 -

The Government will provide $83.1 million over four years to provide a training Supplement of $41.60 per fortnight for eligible job seekers engaged in full‑time accredited training.

The supplement will be available to job seekers on Newstart Allowance or Parenting Payment who have not completed Year 12, or equivalent, or who are upgrading their qualification to better equip them to find future employment.

The supplement will be paid though the income support system and will apply to those who commence approved training during the period 1 July 2009 to 30 June 2011.

Recipients of the Training Supplement may also be eligible to receive the $208 Education Entry Payment and the $950 Temporary Supplement.

Jobs and Training Compact — Youth Attainment and Transitions National Partnership

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of the Treasury - - - 50.0 -
Department of Education, Employment and Workplace Relations - - - - -
Total - - - 50.0 -

The Government will provide up to $644.0 million over five years (including up to $50.0 million in 2013‑14) in support of a Youth Attainment and Transitions National Partnership to improve the education and training of young people across Australia. The National Partnership aims to assist young people to complete Year 12 or an equivalent qualification and enter the workforce.

Details of the National Partnership will be finalised with state and territory governments through the Council of Australian Governments in conjunction with the non‑government school system. Funding for all elements of the National Partnership, except reward payments, could be progressively transferred from existing Commonwealth programs to States and Territories.

The National Partnership will support the bringing forward of the Council of Australian Government 90 per cent Year 12 or equivalent educational attainment rate target from 2020 to 2015, and will consist of five elements:

  • Youth Connections to provide case management and support 'at risk' young people to remain engaged in, or reconnect with, education and training;
  • Community and Education Engagement to assist community and business engagement with schools and so encourage student engagement, deepen learning experiences, lift attainment and improve educational outcomes;
  • National Career Development to support career development and youth engagement activities which require a national approach to their implementation;
  • Quality On‑The‑Job Workplace Learning payments to the states and territories to coordinate work placements for school students participating in vocational education and training; and
  • up to $100.0 million of reward payments to the states and territories for achievement of improved rates of participation in Years 10 to 12 and attainment of Year 12 or equivalent level qualification, with up to $50.0 million provided in each of 2011‑12 and 2013‑14.

Funding for this National Partnership will consist of up to $100.0 million of additional funding, with the remaining $544.0 million of the cost of this measure being met from within the existing resourcing of the Department of Education, Employment and Workplace Relations.

National Mental Health and Disability Strategy — Disability Support Pension Employment Incentive Pilot

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 0.6 3.2 2.2 0.7
Department of Education, Employment and Workplace Relations - 0.1 - - -

The Government will provide $6.8 million over four years (including $0.1 million of capital expenditure) to establish an Employment Incentive Pilot to support ongoing employment opportunities for up to 1,000 Disability Support Pension recipients who are being assisted by a specialist disability employment service provider. Employers will be eligible for an employment incentive of up to $3,000 for each participant who undertakes ongoing employment for a minimum of eight hours per week for 26 weeks.

The Disability Support Pension wage subsidy pilot will commence from 1 March 2010 and operate until 30 June 2012.

See also related expense measure titled National Mental Health and Disability Employment Strategy — Australian Public Service strategy in the Prime Minister and Cabinet portfolio.

Participation Taskforce Review — more flexible participation requirements for parents

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Centrelink - 6.6 3.1 2.0 2.1
Department of Education, Employment and Workplace Relations - .. 3.9 3.6 3.5
Total - 6.6 7.1 5.6 5.6
Centrelink - 1.9 - - -

The Government will change the participation requirements for certain principal carer parents at a cost of $26.8 million over four years (including $1.9 million of capital investment). The changes respond to the recommendations of the Participation Taskforce, established in May 2008 to provide advice to the Government on the barriers to greater participation in the workforce, particularly for parents.

The changes will allow greater flexibility in participation requirements for principal carer parents by:

  • allowing principal carers to undertake activities to satisfy part‑time participation requirements through more flexible study rules, allowing combinations of study and paid work;
  • providing a break in participation requirements over the Christmas/New Year holiday periods;
  • being more responsive to individual family circumstances; and
  • providing more ways of reporting earnings and participation efforts, such as through telephone and web‑based channels.

These changes will apply from 1 July 2010.

Prime Minister's Australia Asia Endeavour Awards

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 3.5 3.8 3.9 3.8

The Government will provide $14.9 million over four years to support a new international scholarship scheme — the Prime Minister's Australia Asia Endeavour Awards — enabling the best and brightest students at undergraduate and postgraduate levels from Australia and the Asia‑Pacific to participate in a series of two‑way exchanges that integrate study and work opportunities. These scholarships will help to build links with Australia's neighbours with long term benefits for trade and security, as well as enriching our cultures.

This measure expands upon the existing Endeavour Awards program and responds to key priorities from the security, communities and productivity streams of the Australia 2020 Summit.

Further information can be found in the press release of 23 April 2009 issued by the Minister for Education.

Quality Teacher Program — National Projects component — abolition

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - -7.7 -8.1 -8.3 -8.1

The Government will not proceed with unallocated funding for the National Projects component of the Quality Teacher Program. the Government has taken a more strategic approach and invested substantial funding through the Smarter Schools — Improving Teacher Quality National Partnership.

The Council of Australian Governments agreed on 29 November 2008 to provide funding of $550 million over four years from 2008‑09 to fund the National Partnership to deliver quality teaching initiatives to attract, train, place, develop and retain quality teachers and school leaders.

Reform of Australian Apprentices Incentive Funding — extend incentives to employers of custodial apprentices

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 0.1 0.1 0.1 0.1

The Government will provide $0.4 million over four years to extend eligibility for incentives to employers of custodial Australian Apprentices at all certificate levels, payable once apprentices are released from incarceration.

The measure will assist employers by enabling them to access incentive payments in respect of custodial Australian Apprentices who have commenced and undertaken apprenticeship training during a period of their incarceration.

Reform of Australian apprenticeships incentive funding — increased efficiency

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - - - -

The Government will not continue the arrangement for sharing completion incentives for Australian apprentices with multiple employers. This program arrangement came into effect on 1 July 2005 and was implemented as a time‑limited program. It offered incentives to employers who made a major contribution to an apprentice's training, even if their apprentice had moved on to another workplace. Employers who provided 25 per cent or more of a Certificate III or IV apprentice's training were able to receive a share of the completion incentive.

The arrangement was found to be overly complex. From 1 July 2009, employers of eligible apprentices who complete their apprenticeship will receive the full completion incentive rather than sharing this with previous employers. The amount paid to employers overall will not change.

Provision for this funding has already been included in the forward estimates.

Reform of Australian Apprenticeships Incentives Funding — abolish Apprenticeship Training (Fee) Voucher

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - -51.1 -57.1 -57.1 -57.6

The Government will achieve improved outcomes through implementing new and more efficient arrangements for funding Australian Apprenticeship incentives and personal benefits to apprentices and their employers. The Apprenticeship Training (Fee) Voucher program is an underperforming program with a low take‑up rate and has been largely superseded by the Productivity Places Program, which funds the cost of training and qualifications at Certificate II and above.

Low take‑up rates have meant that only $4.5 million was spent under this program in 2007‑08 and only $15.0 million is expected to be spent in 2008‑09. The savings achieved from abolishing this underperforming program will be used to extend support under the Mid‑Career Apprentices program to those aged 25 years and over; extending employer incentives to all Diploma and Advanced Diploma qualifications; the more generous arrangements under the Tools for your trade payment, and extend employer incentives to custodial apprentices. The new payment will be available to Australian Apprentices in selected trade occupations, agricultural occupations and, if in rural and regional Australia, horticultural occupations. Savings will also be used to offset other priority expenditure.

This measure will achieve savings of $222.9 million over four years.

See also the related expense measures titled Reform of Australian Apprenticeships Incentives Funding — provide support for Mid‑Career Apprentices by extending funding to those aged 25 years and over, Reform of Australian Apprenticeships Incentives Funding — Extend employer incentives to all Diploma and Advanced Diploma courses, Reform of Australian Apprenticeships Incentives Funding — combine three incentive programs into one program — Tools for Completion and Reform of Australian Apprenticeships Incentives Funding — extend incentives to employers of custodial apprentices.

Reform of Australian Apprenticeships Incentives Funding — abolish the Increased Opportunities for School‑based New Apprentices in the Trades

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - -6.2 -6.4 -6.6 -6.7

The Increased Opportunities for School‑based Apprentices in the Trades program will be abolished from 1 July 2009. Take‑up rates for this program have been low. There are a number of other overlapping programs that provide targeted assistance for school‑based apprentices including the Group Training Australian Apprenticeships Targeted Initiatives Program, the Joint Group Training Program, Australian Technical Colleges and other State and Territory Government programs.

In addition, the Government has previously provided significant new funding to assist school based apprentices, including under the Trade Training Centres in Schools program which provides $2.5 billion over 10 years; and the Schools Grants for on‑the‑job training measure which provides $98 million over four years for grants to schools to enable students to undertake on‑the‑job training for one day a week for 20 weeks.

This measure will achieve savings of $25.9 million over four years.

Reform of Australian Apprenticeships Incentives Funding — combine three incentive programs into one program — Tools for Your Trade

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 1.6 7.2 7.4 7.4

The Government will provide net additional funds of $23.6 million over four years to combine and extend the Tools For Your Trade, the Commonwealth Trade Learning Scholarship and the Apprenticeship Wage Top‑Up to provide a $3,800 personal cash benefit. This new payment will be paid in five instalments for apprentices in skills shortages occupations and apprentices in all agriculture occupations and, in rural and regional areas, horticulture occupations through a new Tools for Your Trade payment.

This measure will introduce new eligibility rules that will extend support to some groups of apprentices that currently do not receive one or more of these payments. The creation of a single program providing cash payments will reduce the current administrative complexity involved with allocating funds through three separate programs, each with different administrative and eligibility requirements. Savings achieved from reduced administrative complexity will be re‑invested in expanded incentive payments. The implementation of streamlined administration and consolidation of sub‑programs reduces expenses.

The new payment will be available to Australian Apprentices in selected trade occupations, agricultural occupations and, if in rural and regional Australia, horticultural occupations.

Reform of Australian Apprenticeships Incentives Funding — extend employer incentives to all Diploma and Advanced Diploma courses

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 10.0 15.9 12.9 8.2

The Government will provide an additional $47.0 million over four years to continue employer incentives — mainly commencement, recommencement and completion payments — for apprentices undertaking selected Diplomas and Advance Diplomas. This is an ongoing measure.

This measure will support the COAG Participations and Productivity agenda to double the number of Diploma and Advanced Diploma completions between 2009 and 2020.

Reform of Australian Apprenticeships Incentives Funding — provide support for Mid‑Career Apprentices by extending funding to those aged 25 years and over

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 11.3 14.0 13.9 13.9

The Government will provide an additional $53.1 million over four years to support more Mid‑Career Apprentices. Currently support is only available to employers of apprentices aged 30 years and over in an occupation listed on the National Skills Needs Lists and is capped to a maximum of 10,000 new commencements each year.

This measure will extend support to apprentices aged 25 years and over and remove the limit on the number of eligible apprentices able to receive this support. Support under the initiative is $150 a week for first‑year full‑time apprentices, and $100 per week for second year apprentices in Certificate III and IV programs.

This measure complements COAG's Compact with Young Australians which ensures every Australian under the age of 25 will have a guaranteed education or training place.

Reform of Australian Apprenticeships Incentives Funding — reduce and phase out Fast Track Apprenticeships

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - -3.0 -5.4 -11.0 -16.9

The Fast Track Apprenticeships program tackles skill shortages by increasing the number of tradespeople in undersupplied industries through accelerated competency based apprenticeship models. Currently the program provides direct assistance to a large number of smaller individual projects and will be redeveloped to focus on a small number of large projects which demonstrate the development and dissemination of best practice. The new program will be time‑limited and operate over the next four years.

It is expected that program outcomes will set benchmark processes for future delivery of accelerated apprenticeship pathways and enhance the flexibility of the national training system.

This measure will achieve savings of $36.3 million over four years.

Reform of Australian Apprenticeships Incentives Funding — streamlined administration

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - -0.4 -5.0 -6.4 -6.5

The Government will achieve administrative efficiencies and save a total of $18.3 million over four years by streamlining administration arrangements across the Australian Apprentices incentive programs.

New streamlined administrative arrangements will reduce departmental expenses by a total of $24.1 million over four years by reducing the number of separate payments, combining three payments into a single 'Tools for Completion' payment, reduce employer administration by making cash payments rather than reimbursements, and introduce more consistent eligibility arrangements. This will be offset by a one‑off cost of $5.8 million to establish the Tools for Completion payment arrangements.

See also the related expense measure titled Reform of Australian Apprenticeships Incentives Funding — Combine three incentive programs into one program — Tools for Completion in Education, Employment and Workplace Relations portfolio.

Skills for the Carbon Challenge

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 8.3 7.0 5.6 6.0

The Government will provide $26.9 million over four years to improve the capacity of industry and the vocational education and training sector to respond to climate change.

Funding of $20 million over four years will be used to establish a pilot Skills for Sustainability Incentives Program which will provide support for approximately 5,000 Australian Apprentices per year in selected National Skills Needs List occupations undertaking a threshold level of sustainability skills related training. Additional funding will drive the development and trial of qualifications and training resources that incorporate sustainability principles, green skills and responsive educational approaches in a number of key industries.

This measure responds to key priorities from the Productivity and Sustainability streams of the Australia 2020 Summit.

Further information can be found in the press release of 23 April 2009 issued by the Minister for Education, Employment and Workplace Relations.

Transitional assistance to employment service providers — Business Adjustment Fund

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations 1.5 1.5 - - -

The Government will provide $3.6 million over two years to provide assistance to not‑for‑profit organisations that were unsuccessful in gaining business, or that have lost substantial business, in the recent employment services tender.

Eligible organisations will have access to specialist business advisors and will be able to apply for grants of up to $100,000 to develop and implement new business plans to reposition their organisation and respond to new opportunities.

An amount of $0.6 million of the total cost of this measure will be met from within existing resourcing of the Department of Education, Employment and Workplace Relations

Further information can be found in the press release of 1 April 2009 issued by the Minister for Employment Participation.

Unlawful Termination Assistance Scheme — discontinuation

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - -5.9 -6.1 -6.1 -6.1

The Government will cease funding for the Unlawful Termination Assistance Scheme announced in the Mid‑Year Economic and Fiscal Outlook 2005‑06. The Unlawful Termination Assistance Scheme was designed to provide financial assistance to people who believed they may have been unlawfully terminated under section 659 of the Workplace Relations Act 1996. Following passage of the Fair Work Act 2009, unfair dismissal laws will be amended from 1 July 2009. The new system is intended to focus on simpler, less legalistic processes, and the Unlawful Termination Assistance Scheme will therefore no longer be necessary.

This measure will provide savings of $24.2 million over four years.

Vocational Education Broadband Network

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 25.7 15.6 - -

The Government will provide $81.9 million over three years (including $40.5 million in 2008‑09) to provide the infrastructure to support a Vocational Education Broadband Network. This measure will support a high speed broadband network for the training sector. This will create a single post‑secondary high speed network, connecting vocational education and training providers to the same network serving universities and other research institutions. The network will feature an online training marketplace, enabling private and community providers to offer courses across Australia.

The measure will assist in supporting foundation skills training, such as language, literacy and numeracy, through the provision of infrastructure to support low cost delivery. It also responds to key priorities from the Productivity stream of the Australia 2020 Summit.

Further information can be found in the press release of 23 April 2009 issued by the Minister for Education, Employment and Workplace Relations.

Youth Development and Support Program — funding reallocation

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - - - -

The Government will reallocate funding of $0.5 million per annum to the new Youth Development and Support Program from the former Youth Sponsorship Initiative program to fund organisations to support initiatives aimed at offering development opportunities for young people. The new program will allow eligible organisations to apply for project funding of up to $75,000.

The cost of this measure will be met from within the existing resourcing of the Department of Education, Employment and Workplace Relations.

If www.budget.gov.au responds slowly or you are having trouble downloading a document, try one of the Budget Website Mirrors

Note: Where possible, Budget documents are available in HTML and for downloading in Portable Document Format(PDF). If you require further information on any of the tables or charts on this website, please contact The Treasury.