2. Children and Young People
The Australian Government is committed to providing every young Australian with the support they need to make a positive and confident start in life and to reach their full potential.
At the same time, the Government recognises that the future prosperity of this nation depends on increasing the skills, capacity and knowledge of our people. The Government is committed to ensuring the Australia of tomorrow is higher skilled, more inclusive and a winner in the global competition for jobs, investment, productivity and prosperity.
The key reform necessary to achieve this vision of Australia's future and to offer the best start in life for every young Australian is the Education Revolution, a set of linked education reforms today which will give us the jobs and prosperity of tomorrow.
The Education Revolution involves fundamental reforms and unprecedented investments to ensure that Australia develops into one of the most highly skilled and productive nations in the world.
Optimal early childhood development, together with the basic literacy and numeracy skills developed in school, provide the foundation skills that contribute to a more productive and socially inclusive society.
The road to a more productive Australia starts as soon as children are born. Early childhood education sets the foundation for learning and wellbeing throughout life. Investment in early childhood education is a long‑term investment in the future. This is because of the significant benefits that flow to individuals, families and national economies through improved learning and skills, increased participation in the labour force and reduced public expenditure on welfare, health and crime.
The Australian Government is investing in a high‑quality schooling system in every community that will enable Australian students to meet the challenges of the future. It is education that helps people to deal with difficult times and it is education that will generate prosperity when the economy starts to grow again and for the long term.
In addition to early childhood and school education, the Government's Education Revolution extends to a strong national training system that delivers economic and social benefits to individual students, industry and business and obtains value for investment. The Australian Government and the state and territory governments have been working with industry to develop a training system that provides Australians with the vocational skills they need to enter or re‑enter the workforce and to up‑skill.
The Australian Government is also committed to the Education Revolution in higher education with a sweeping reform agenda to equip Australia's universities for the years to come (see Chapter 4).
The jobs and prosperity of tomorrow depend on the Education Revolution being delivered by the Australian Government today and through this Budget.
Early Childhood Development
Universal Access to Preschool
In November 2008, the Council of Australian Governments (COAG) endorsed a major new National Partnership on Early Childhood Education. This agreement has a specific focus on quality preschool education for disadvantaged and Indigenous children. The National Partnership provides $970 million in Australian Government funding over five years (2008—09 to 2012—13) to support universal access to a preschool program delivered in the year before full‑time schooling, by 2013. It represents the first major injection of government funding for the education of preschool children since the 1970s.
Children and Family Centres
Early childhood development and family support programs are known to improve outcomes for disadvantaged children, including Indigenous children. The Australian Government is providing $293 million for the establishment of 35 Children and Family Centres in areas with high Indigenous populations. The Centres will provide integrated early learning, child care, parent/family support. This initiative is being implemented under the Indigenous Early Childhood Development National Partnership.
National Early Childhood Development Strategy
The Australian Government has worked with state and territory governments to develop the National Early Childhood Development Strategy. It will embrace a child‑centred perspective and identify the early childhood development outcomes that governments are seeking to achieve for all children by 2020. This Strategy is expected to go to COAG in July 2009.
Other measures
The Government has made a commitment to improve early childhood learning and care to ensure that children are given the best start in life. Work is progressing on a range of measures including:
- an Early Years Learning Framework ($2.5 million in 2008—09)
- a National Quality Framework for Early Childhood Education and Care ($5.7 million in 2008—09)
- a commitment to improve outcomes for Indigenous children and other disadvantaged groups.
The Government has also committed to establishing up to 260 additional early learning and care centres in areas of unmet demand for child care. These centres will provide integrated early learning and care in a long day care setting that takes into account the specific requirements of the local community.
This initiative is to be delivered in two phases. In phase one, the Government has allocated $114.5 million over four years in the 2008—09 Budget to establish the first 38 centres in priority locations (including six autism‑specific centres). This funding includes both the capital costs and the ongoing costs of establishing additional child care places, including the Child Care Benefit (CCB) and the Child Care Tax Rebate (CCTR).
The remaining up to 222 early learning and care centres will be considered when the child care market is settled and based on the experience of the priority centres.
The Government has also committed $32.5 million over five years to implement the Home Interaction Program (HIP) nationally across 50 disadvantaged communities. HIP is a two‑year, home‑based early childhood program that aims to assist disadvantaged three to five‑year‑old children by providing home tutors, books and associated educational resources to help parents improve children's school readiness.
COAG has endorsed the Australian Early Development Index (AEDI) as a national progress measure of early childhood development. The Australian Government has invested $20.2 million in the first national rollout of the AEDI in 2009. The results from the AEDI collection will build a comprehensive picture of the health and development of children at the local level. Communities can then use this information to better target support services to ensure children have the best possible start in life.
Child care costs
The Australian Government is investing $12.8 billion over the next four years to help 800 000 Australian families with the cost of approved child care.
The CCB alone will deliver $8.4 billion over four years to reduce child care costs. In addition, the CCTR will provide $4.4 billion over four years to assist working families with their out‑of‑pocket child care costs.
This consolidates last year's Budget announcement for CCTR where from July 2008 the rebate increased from a maximum $4354 to up to $7500 per child per year. This now covers 50 per cent of out‑of‑pocket costs, up from 30 per cent prior to July 2008. The rebate is also payable quarterly, closer to when child care costs are incurred. The 2008 Budget also extended Jobs Education and Training Child Care Fee Assistance to two years, or the part‑time equivalent, for parents undertaking approved full‑time study, regardless of the length of their course.
Responsiveness to parents
The Government has responded decisively to the needs of parents and children affected by the failure of ABC Learning by providing up to $58 million in 2008—09 to support the operation of 262 loss‑making ABC centres which would have otherwise closed as a result of the company's insolvency. This funding is also supporting an orderly process for seeking new operators for the centres, or alternative care for the affected families, wherever possible.
The Government will continue to support high‑quality early childhood education and child care in this Budget through a range of initiatives:
Child care estimator $2.5 million
The Government will invest a total of $2.5 million over the next four years to introduce a child care estimator which will allow families to estimate the dollar value of their entitlements, as well as their out of pocket child care costs. An additional $2.5 million has been provided in this Budget for the estimator. The estimator will allow parents to be better placed to make informed decisions regarding child care and associated education, training and workforce participation options. The estimator will be available at www.mychild.gov.au from 1 January 2010.
Crèches in Northern Territory communities $9.1 million
$9.1 million over three years has been allocated to provide operational funding for eight new crèches, which have already been established, as well as capital and operational funding for a ninth new crèche and capital funding to upgrade two more existing crèches. These new crèches are in communities that previously had little or no access to early childhood programs for children under five years.
Reform of Special Child Care Benefit as part of National Child Protection Framework $36.6 million
This reform will give greater clarity to the definition of 'at risk' to better assist services to recognise where a child is eligible for Special Child Care Benefit and increase awareness of the availability and application of the benefit. The improvements are expected to increase usage of the benefit and enable children at risk to access the developmental benefits of quality child care.
Delivering Excellence in Schooling
COAG—National Education Agreement
In November 2008, the Government agreed through COAG a package of fundamental reforms to school education to drive the Education Revolution in all Australian schools.
These reforms are interlinked and being driven through the National Education Agreement (NEA), the Schools Assistance Act 2008 and National Partnerships (NPs).
The Government's Education Revolution is for all schools. This major reform agenda is supported by unprecedented new resources for capital and equipment through the Building the Education Revolution program, Trades Training Centres program and the Digital Education Revolution as well as an unprecedented injection of funds for recurrent costs for schools.
The Education Revolution reform agenda combines the power of a new era of school transparency—enabling for the first time ever the public comparison of like schools—with new ways of driving better educational outcomes through new measures to improve teacher quality, address educational disadvantage, improve literacy and numeracy and implement a new quality national curriculum.
Today's school children will be the working Australians of tomorrow. Consequently, each child must be able to acquire through high‑quality schools the knowledge and skills to participate effectively in society and employment in the economy of the future.
The NEA and NPs will provide $18 billion to the states and territories for government schools from 2009 to 2012. This includes an additional $635 million (2008—09 to 2012—13) to end the arbitrary distinction between investment in government primary and secondary schools by aligning the primary and secondary proportions of Average Government School Recurrent Costs (AGSRC). Funding for non‑government schools is being delivered through the Schools Assistance Act 2008 and will see $28.1 billion delivered from 2009 to 2012.
Improving Teacher Quality
Teacher quality is the single greatest influence on student engagement and achievement in school. To drive quality improvements and to better support Australia's teacher workforce, the Australian Government is investing $550 million through the Smarter Schools: Improving Teacher Quality National Partnership to help attract the best and brightest into teaching, create new incentives for teachers to improve quality and to help develop and retain quality teachers and leaders in schools. Of this, $50 million will be directed at professional development and at supporting principals to better manage their schools and achieve improved student results.
Literacy and Numeracy
In May 2008, the Australian Government announced $577.4 million for the National Action Plan on Literacy and Numeracy. The Government is delivering key initiatives to improve literacy and numeracy outcomes for those students most in need of support, in government and non‑government schools.
More than 400 schools are already engaged in pilot initiatives to identify strategies that work best in improving the literacy and numeracy performance of students in disadvantaged communities. Working collaboratively with states and territories, the Australian Government has invested around $40 million in 30 pilots to trial or expand initiatives that will guide systemic change in literacy and numeracy.
These pilots are already driving change at the school level. As a result of this investment, there is already increased collaboration across sectors and jurisdictions, and the sharing of information on what works. This is critical to building an evidence base of how student achievement can best be supported, particularly for disadvantaged students.
$540 million has been invested in the Smarter Schools: National Partnership on Literacy and Numeracy to enable states and territories to systematise approaches that are proven to be effective in improving literacy and numeracy outcomes.
Supporting children to achieve their full potential
Students in low socio‑economic school (SES) communities face a level of disadvantage not experienced by other Australian students. Students in these communities can and should get a great education and achieve good educational outcomes. Unfortunately, national and international testing of Australian school students shows disadvantaged students are far too likely to not master educational benchmarks.
The Smarter Schools: National Partnership for Low SES Communities initiative will inject $1.5 billion over seven years to be matched by the states and territories, to improve educational outcomes in these communities. This initiative is a critical element of the Government's social inclusion and schools reform agenda.
Building the Education Revolution—investment and reform in Australian schooling
To boost jobs and invest in Australia's long‑term future the Government will build or upgrade buildings in Australia's 9540 schools.
Building the Education Revolution is a $14.7 billion long‑term investment to improve the quality of facilities in Australian schools.
This historic nation building investment will not only support jobs, it will contribute to the long‑term strength of the Australian economy.
By improving the quality of education received by every Australian child, this program will help deliver the stimulus of today as well as invest in future productivity.
Building the Education Revolution is a key element of the Government's $42 billion Nation Building and Jobs Plan to support Australian jobs.
Building the Education Revolution commenced in 2008—09 and will be rolled out over the next three years. Building the Education Revolution is divided into three key programs:
- Primary Schools for the 21st century—is a $12.4 billion long‑term investment to build or upgrade large‑scale infrastructure in all primary schools, special schools, and K‑12 schools. New school buildings funded by this program will include libraries and multipurpose halls.
- Science and Language Centres for 21st century Secondary Schools—is a $1 billion long‑term investment to build around 500 new science laboratories and language‑learning centres in schools with a demonstrated need, readiness and capacity to complete construction by 30 June 2010.
- National School Pride Program—is a $1.3 billion investment to refurbish and renew existing infrastructure and undertake minor building works. Under this program, every Australian school will receive up to $200 000, based on the size of the school, for maintenance and minor building works.
Building the Education Revolution will also help support local communities. A key requirement of this package is that major facilities in primary schools that are built or upgraded with this funding—such as halls or indoor sporting centres—are made available for community use at no, or low, cost.
Digital Education Revolution—Funding of on costs
Innovation will be central to securing Australia's competitive advantage in the future. The $2 billion Digital Education Revolution program includes funding of $807 million to school authorities to cover the associated costs of implementing the initiative. This initiative ensures that school students experience a technology‑rich learning environment, which will prepare them for the technology‑rich work environments of the future.
Through three application rounds, the Australian Government has already approved funding of over $234 million to provide more than 290 000 computers in over 2700 schools. The aim of the initiative is that all secondary school students in Years 9 to 12 will have a 1:1 computer to student ratio by 2011.
Trade Training Centres in Schools Program
The Government is also working to raise the status of vocational education and training (VET) and better integrate the school and tertiary education sectors. The Trade Training Centres in Schools Program is an important element of the Government's Education Revolution. It provides $2.5 billion over 10 years to establish Trade Training Centres in secondary schools to help increase the proportion of students achieving Year 12 or an equivalent qualification and help address skill shortages in traditional trades and emerging industries.
As part of the February 2009 Nation Building and Jobs Plan it was announced that up to $110 million will be brought forward to round two of the Trade Training Centres in Schools program. This builds on the already significant $277 million available for the first round. Schools will now have access to more funds sooner, to build or upgrade existing trade training facilities.
These centres will increase training opportunities for students and help address skills shortages in trades and emerging industries both during the economic crisis and in the longer term.
Building Business—School Connections
The Government will provide $450 000 to sponsor a Business‑School Connections Roundtable to develop a practical strategy to foster more partnerships between schools and business. The roundtable will consist of a small number of people from business, community and education sectors who have demonstrated their commitment and expertise in supporting school communities. This initiative is part of the Government's broader commitment to stronger schools‑business linkages which is about creating a broad and supportive environment for students that involves business, community and parents in schooling. The cost of this initiative will be met from within the existing resourcing of the department.
Delivering better outcomes for students
To help ensure that students have access to the highest quality school education, Australia needs a rigorous and world‑class national curriculum, a quality teacher workforce, transparent outcomes and effectively targeted education resourcing.
A world‑class national curriculum, from kindergarten to Year 12, will assist and support lower performing students while also challenging and advancing higher performing students in English, Maths, the Sciences and History. It will lift standards and contribute to a greater number of young Australians completing schooling through to Year 12.
To achieve this goal, the Government and the states and territories created the Australian Curriculum Assessment and Reporting Authority. The Australian Government has contributed $50 million over four years to the authority.
Information will be published by the new Australian Curriculum, Assessment and Reporting Authority progressively from this year. Governments and the community will be able to look at school achievement against the background of the resources of the school and the composition of the student intake. This will enable a comprehensive, accurate, public picture of how like schools in different communities perform. This will also help governments to support accountability, school evaluation, collaborative policy development and resource allocation.
The Australian Government is Skilling Australia
The national training system provides high‑quality, industry‑driven and nationally recognised training taken up by one in eight working‑age Australians. The Australian Government and the state and territory governments have worked with industry to develop a training system that provides Australians with the vocational skills they need to enter or re‑enter the workforce and to up‑skill. This cooperation is reflected in the National Agreement on Skills and Workforce Development, which identifies the long‑term objectives of the Australian Government and the state and territory governments on skills and workforce development. It also affirms the commitment of all governments to work in partnership with each other and with businesses and industry to develop the skills of the Australian people.
The Government has established Skills Australia to provide advice on current, emerging and future workforce development needs and workforce skills needs. The role of the Industry Skills Councils (ISCs) has been strengthened and expanded in workforce development and in the training system. ISCs provide integrated industry intelligence and advice to Skills Australia and advise enterprises on the workforce development and skills needs in their industry sector.
As part of the first steps toward developing a tertiary education and training sector, the Government has announced that Skills Australia will provide advice on industry and workforce development priorities for the higher education sector as well as VET. In addition, as part of the Compact with Young Australians, announced by COAG on 30 April 2009, all governments support in principle the establishment of a national regulatory body for VET to cover registration of training providers and accreditation of qualifications and courses. The Australian Qualifications Framework Council has been commissioned to create better connections for students to move between competency‑based vocational courses and merit‑based higher education qualifications.
Skilling Australia for the Future
The Australian Government is implementing its strategy for VET through the Skilling Australia for the Future initiative. A central element of the initiative is the Productivity Places Program (PPP), under which 711 000 training places are being provided over five years to ensure that Australians develop the skills that they, and industry, need.
As part of Skilling Australia for the Future, the role of Apprenticeships Centres has been expanded to establish a network of Skills and Training Information Centres. These centres provide information on skills and training, and advice to employers, employees, job seekers and other interested parties, as well as connecting employers with ISCs.
Extension of VET FEE‑HELP Scheme
The Government is also reducing financial barriers for Australian VET students. The VET FEE‑HELP Scheme assists eligible VET students to pay for all or part of their tuition fees through income‑contingent loans. As part of the 2009—10 Budget, this scheme is being extended to Victorian Government‑subsidised diploma and advanced diploma courses.
Teaching and Learning Capital Fund for Vocational Education and Training
In December 2008, the Teaching and Learning Capital Fund for Vocational Education and Training was announced as part of the $4.7 billion Nation Building Infrastructure Package to support Australia's economy. Worth $500 million, the initiative will inject funding into public skills and training infrastructure to support jobs today and increase the capacity of the training sector over the longer term to meet 21st century skills needs including $400 million for TAFE infrastructure and $100 million in community education.
Supporting Australia's apprentices
The Government will provide a range of benefits to employers and Australian Apprentices totalling $3.8 billion over the next four years. The Government is realigning some of these payments to benefit the 429 500 Australian Apprentices and their employers. Bundling a number of existing payments into a new Tools for Your Trade payment and broadening eligibility for some new measures means more payments to a greater number of apprentices as well as reduced paperwork for employers.
Streamlining the Australian Apprenticeships Incentives Program
The Australian Government is investing $3.8 billion over four years to support apprenticeships and traineeships. The existing financial incentives under the Australian Apprenticeships Incentives Program will be streamlined to reduce the administrative burden for employers while retaining valuable support for employers, apprentices and trainees.
To increase the number of Australians who have higher level qualifications, the Government is broadening eligibility for the $4000 incentive payments to employers of all Australian Apprentices who are studying diploma and advanced diploma qualifications.
In order to recognise the number of adults looking to improve their employment opportunities through re‑skilling, the Australian Government is announcing an extension of the successful Support for Mid‑Career Apprentices payment from those aged 30 and over to those aged 25 and over. The extension of this payment will benefit around 2000 Australian Apprentices or their employers annually. They will be entitled to an extra $7800 in the first year of training and $5200 in the second year.
The streamlining will include combining three separate support payments for Australian Apprentices into a new payment called 'Tools for Your Trade'. The new payment will be available to Australian Apprentices in selected trade occupations, agricultural occupations and, if in rural and regional Australia, horticultural occupations. These new eligibility arrangements will increase the number of Australian Apprentices receiving this support by up to 14000 people annually.
The Government is also supporting skills development through the following initiatives:
Skills for the Carbon Challenge $26.9 million
A significant Government initiative, Skills for the Carbon Challenge, deals with the supply of skills needed in the future. This important issue was raised at the 2020 Summit. The Australian Government is responding with this initiative that aims to accelerate the response to climate change from industry and the tertiary education sector by investing in training and providing incentives to support the take‑up of skills for sustainability. In this Budget the Government will commit $26.9 million over four years to progress the 2020 Summit idea so that by 2020 Australia should be a world leading green and sustainable economy, making a major contribution to a comprehensive global response to climate change.
Vocational Education Broadband Network $81.9 million
In April 2009, the Government announced funding of $81.9 million for a high‑speed broadband network to connect TAFEs across Australia. Again, this initiative responds to a vital issue raised at the 2020 Summit. The Vocational Education Broadband Network will provide the infrastructure that will allow TAFEs across the nation to access a high‑quality broadband network that is tailored to the specific requirements of the training sector.
Higher Education
Building world‑leading infrastructure is critical to cushioning the blow of the global recession by creating jobs today while giving us the infrastructure the national needs for tomorrow. The Australian Government has committed in excess of $2.3 billion for university infrastructure through investments including Better Universities Renewal Fund, Education Investment Fund and Teaching and Learning Capital Fund in under two years. This significant commitment to invest in the infrastructure needs of our universities contrasts with that of the previous government which provided capital infrastructure grants through its education programs totalling approximately $1.1 billion to universities in its 11 years in office.
As part of the December 2008 Nation Building Infrastructure Package the Prime Minister also announced the Education Investment Fund's Round 1 successful projects, totalling $580.5 million. These projects include:
- the Centre for Obesity, Diabetes and Cardiovascular Disease, University of Sydney—$95 million
- the Peter Doherty Institute for Infection and Immunity, University of Melbourne—$90 million
- the Hearing Hub, Macquarie University—$40 million
- the RMIT Design Hub, Royal Melbourne Institute of Technology—$28.6 million
- the Energy Technologies Building, University of New South Wales—$75 million
- the International Microsimulation Centre: National Centre for Social and Economic Modelling, University of Canberra—$11 million
- the Materials and Minerals Science Learning and Research Hub, University of South Australia—$40 million
- world‑class veterinary science facilities, Gatton Campus, University of Queensland—$47.2 million
- SMART Infrastructure Facility, University of Wollongong—$35 million
- the Institute for Photonics and Advanced Sensing, University of Adelaide—$28.8 million
- the New Horizons Centre at Clayton campus, Monash University—$89.9 million.
Teaching and Learning Capital Fund for Higher Education
In December 2008, the Teaching and Learning Capital Fund for Higher Education was announced as part of the $4.7 billion Nation Building Infrastructure Package to support Australia's economy. The Government has made it a national priority to create a world‑leading higher education system for Australia. This $500 million initiative will assist institutions in achieving their distinctive missions and promote a diverse, globally focused higher education sector. The teaching and learning spaces of Australia's universities will be improved so that they are physically and technologically appropriate for 21st century approaches to tertiary education. These projects will transform teaching, learning and research spaces across the country in a way that responds to the areas of demand.
The Government is committed to improving the accessibility of higher education for working‑age Australians. Chapter 4 outlines the Government's commitment to support higher education through its responses to the Review of Australian Higher Education and the Review of the National Innovation System.
Compact with Young Australians
In times of economic downturn, youth unemployment tends to rise rapidly and then falls back slowly during the recovery. This can result in youth unemployment remaining stubbornly high when compared to the broader labour market. Early school leavers and young people with low skills are likely to experience particular disadvantage both during the downturn and recovery.
The Compact with Young Australians, agreed by COAG on 30 April 2009, will mean that young Australians under the age of 25 will be entitled to an education or training place for any government‑subsidised qualification in which the young person can meet the admission requirement.
The compact will commence immediately and will be fully implemented by 1 July 2009 for 15 to 19 year olds and by 1 January 2010 for 21 to 24 year olds. For the latter group, the compact will be for a place that results in a higher qualification. The compact will be offered until 31 December 2011 and will be reviewed in April 2011. As part of the compact, 15 to 19‑year‑old job seekers working for up to 15 hours per week will be eligible for training places under the PPP.
It is anticipated that the Compact with Young Australians will provide up to 135 000 young people with higher qualifications. Through COAG, all governments have committed to make new pathways available for young Australians during this economic downturn.
To underpin this, COAG also agreed to the National Participation Requirement. Commencing on 1 July 2010, the National Participation Requirement will make participation in education, training or employment compulsory for all young people until they turn 17. In practical terms this requires all young people to participate in schooling—or an approved training equivalent—until they complete Year 10. It will also be a mandatory requirement for young people who have completed Year 10 to participate in full‑time education, training or employment until age 17.
In addition, COAG has agreed to accelerate the existing COAG goal so that 90 per cent of young people will attain a Year 12 or equivalent qualification by 2015 instead of 2020. These measures send a clear message to young Australians about the importance of education and training to their future prosperity.
The compact will be put in place under a National Partnership on Youth Attainment and Transitions, which will also have a strong focus on longer term reforms to improve the provision of challenging, relevant and engaging learning pathways for young people. The Australian Government believes that we should have high expectations of all young Australians and re‑emphasise the importance of education and training during this period of economic turbulence. It also believes that young people struggling to engage with education should get targeted, focused and effective support to ensure that they can participate successfully. The Australian Government will provide up to $100 million to support the delivery of the compact through reward payments to states and territories for the achievement of improved participation and attainment in Year 12 or equivalent qualifications. The Minister for Youth will lead the development of this National Partnership, in collaboration with state and territory governments.
Every young Australian needs to be motivated to make the most of their educational opportunities, and they need support and encouragement to do so—not just from teachers and school principals—but from their families, local businesses, community organisations and mentors. Under the National Partnership, the Australian Government will also put in place new, better targeted programs. These will include services to broker partnerships and strengthen community and business engagement with schools to improve educational outcomes, and provide a safety net for young people who have disconnected from education and their community, or are at risk of disengaging.
The development and implementation of the programs will be progressed in consultation with the states and territories to avoid duplication of effort, improve the coordination of services at the local level, and ensure that the programs support the broader reforms being pursued under the National Partnership.
National Partnership on Youth Attainment and Transitions $100 million
The Australian Government has committed up to $718 million over four years to ensure that young people have the educational qualifications and skills to participate actively in the workforce and realise their full potential. This Budget provides up to $100 million of new funding to states and territories to reward achievement of outcomes under the compact, including increased participation and attainment. Continuing funding of $618 million will support young people to stay engaged in education and training, including through new and better targeted programs from 1 January 2010.
Participation Requirements for Youth Allowance impact on DEEWR programs $158.4 million
To support the Compact with Young Australians and the National Youth Participation Requirement, in this Budget the Government is providing funding over four years for changes to the eligibility for Youth Allowance to encourage young people to complete Year 12 or an equivalent qualification. From 1 July 2009, young people who have not successfully completed Year 12 or an equivalent qualification and who are seeking income support are required to undertake either full or part‑time study or training in order to qualify for Youth Allowance. Part‑time study or training will usually need to be undertaken with other approved activities. Young people with Year 12 or an equivalent qualification and not undertaking full‑time study remain eligible for Youth Allowance (other) and are required to undertake regular job search activities. Funding of $158.4 million for this initiative includes recognition that some young people whose parents receive FTB Part A will, as a result of the requirement to undertake either full or part‑time study or training, claim Youth Allowance instead.
This measure will also result in reduced Family Tax Benefit expenses. The whole of government financial impact of this measure is a cost of $41.9 million over four years.
Pathways to Skills: Australian Apprenticeships Access Program $30.2 million
Vulnerable young job seekers will be assisted to acquire skills. This Budget provides $30.2 million for an additional 3650 pre‑vocational training and support places for young job seekers aged 19 to 24 as part of the Australian Apprenticeships Access Program.
Securing Australian Apprenticeships $155.3 million
The Government is committed to a range of initiatives to support Australian Apprentices in tough economic times and help them acquire the skills they will need in the jobs of the future.
In February 2009 the Government responded to the impact of the global recession on apprentices by providing a further $145.6 million to assist apprentices and trainees who have lost their job to complete their training with another employer or a Group Training Organisation (GTOs). In addition $9.7 million has been allocated to assist apprentices and trainees to continue their training through Registered Training Organisations.
The new nation building projects and new, streamlined incentives will help to stimulate demand for apprenticeships. As previously agreed by COAG, tenders for new Australian Government‑funded infrastructure projects will give priority to businesses that demonstrate a commitment to retain and employ Australian Apprentices.
COAG has also established a taskforce with industry membership to undertake further urgent work to support the engagement and retention of Australian Apprentices. The Taskforce will provide an action plan to COAG in July 2009.
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