Australian Government, 2009‑10 Budget
Budget

Education, Employment and Workplace Relations

Boys Education National Initiative — reduced funding

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - -3.1 -3.0 -2.7

The Government will reduce funding for the Boys Education National Initiative which was announced in 2003. A number of programs deliver similar initiatives for teaching boys, including the National Partnership Agreement on Improving Teacher Quality.

This measure will provide savings of $8.9 million over three years from 1 July 2010.

Economic Stimulus Plan Recalibration — Building the Education Revolution — Primary Schools for the 21st Century (P21)

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of the Treasury - 19.4 16.1 - -
Department of Education, Employment and Workplace Relations - 8.3 6.9 - -
Total - 27.7 23.0 - -

The Government will provide an additional $50.7 million over two years from 2009‑10 to include distance education students in a school's enrolment numbers for funding purposes under the Building the Education Revolution program. These students will benefit from the school facilities when they physically attend the school premises.

This measure is part of the Government's recalibration of the stimulus program to ensure it continues to provide an appropriate level of support to the economy, taking into account the demand for individual programs, evolving labour market conditions and the need to provide continued value for money. The recalibration complements the withdrawal of stimulus that is already built into the design of the fiscal strategy. The Government will continue to monitor the stimulus program, as well as its overall fiscal settings, to ensure they remain suited to economic conditions.

Economic Stimulus Plan Recalibration — Building the Education Revolution — rephasing

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - -500.0 500.0 -

The Government will rephase funding allocated for the Building the Education Revolution (BER) program in order to provide flexibility in the delivery of the program. This will allow construction timetables to be varied where cost pressures from labour or material shortages would reduce value for money. This will result in $500 million being rephased from 2010‑2011 to 2011‑2012 and will contribute to the achievement of outcomes in the BER program.

This measure is part of the Government's recalibration of the stimulus program to ensure it continues to provide an appropriate level of support to the economy, taking into account the demand for individual programs, evolving labour market conditions and the need to provide continued value for money. The recalibration complements the withdrawal of stimulus that is already built into the design of the fiscal strategy. The Government will continue to monitor the stimulus program, as well as its overall fiscal settings, to ensure they remain suited to economic conditions.

Economic Stimulus Plan Recalibration — Education Investment Fund — Future Rounds — Reduction

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - -175.0 -25.0 -

The Government will reduce the allocation of Education Investment Fund (EIF) funds available to Round 3 and the Sustainability Round by $200.0 million over two years. The $200.0 million will now be returned to the balance of the EIF for future investment. This change will not affect funding for structural adjustment.

The final allocations to each round depend on the quality of proposals received and the advice of the independent advisory board.

Since 2008‑09, the Government has already committed almost $3.0 billion from the EIF (EIF Rounds 1 and 2, Teaching and Learning Capital Fund and the Super Science Round) and another $1.0 billion from general revenue (Better Universities Renewal Fund and the Teaching and Learning Capital Fund for Vocational Education and Training) to the tertiary and research sectors.

This measure is part of the Government's recalibration of the stimulus program to ensure it continues to provide an appropriate level of support to the economy, taking into account the demand for individual programs, evolving labour market conditions and the need to provide continued value for money. The recalibration complements the withdrawal of stimulus that is already built into the design of the fiscal strategy. The Government will continue to monitor the stimulus program, as well as its overall fiscal settings, to ensure they remain suited to economic conditions.

Economic Stimulus Plan Recalibration — Keep Australia Working —
Apprentice Kickstart Bonus and Increased Pre‑Apprenticeship Training Places

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

The Government will provide up to $100.0 million over two years to encourage employers to recruit apprentices and to support pre‑apprenticeship training in the traditional trades in preparation for the economic recovery.

Up to $80.0 million will be provided over two years to fund the Economic Stimulus Plan Recalibration — Apprentice Kickstart Bonus, a $3,350 payment to employers who engage a young person (aged 19 years and under) in an Australian Apprenticeship in an eligible occupation (a traditional trade) between 1 December 2009 and 28 February 2010. The Bonus will be paid in two instalments — $850 paid three months after commencement and $2,500 paid nine months after commencement. This initiative is expected to support an additional 21,000 Australian Apprentices.

Up to $20.0 million will be provided to State and Territory governments and Registered Training Organisations with pre‑apprenticeship programs to support the expanded provision of pre‑apprenticeship training in traditional trades. This initiative is expected to provide up to 5,000 additional pre‑apprenticeship places.

The costs of this measure will be met from the previously announced Get Communities Working and Local Jobs streams of the Jobs Fund. Unused funding will be reallocated to other elements of the Keep Australia Working package.

This measure is part of the Government's recalibration of the stimulus program to ensure it continues to provide an appropriate level of support to the economy, taking into account the demand for individual programs, evolving labour market conditions and the need to provide continued value for money. The recalibration complements the withdrawal of stimulus that is already built into the design of the fiscal strategy. The Government will continue to monitor the stimulus program, as well as its overall fiscal settings, to ensure they remain suited to economic conditions.

See also the related expense measure titled Economic Stimulus Plan Recalibration — Keep Australia Working — Job Expos for Priority Regions.

Further information can be found in the press release of 16 October 2009 issued by the Minister for Education and the Minister for Employment Participation.

Economic Stimulus Plan Recalibration — Keep Australia Working — Job Expos for Priority Regions

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

The Government will provide $4.1 million in 2009‑10 to establish additional Centrelink Jobs Expos for Priority Employment Areas as part of the Keep Australia Working Initiative.

The Expos will provide employment information and advice to job seekers in Priority Employment Areas. The Priority Employment Areas were identified as experiencing especially high levels of disadvantage and unemployment.

Funding for this initiative will be provided from the previously announced Get Communities Working stream of the Jobs Fund.

See also the related expense measure titled Economic Stimulus Plan Recalibration — Keep Australia Working — Apprentice Kickstart Bonus and Increased Pre‑Apprenticeship Training Places.

This measure is part of the Government's recalibration of the stimulus program to ensure it continues to provide an appropriate level of support to the economy, taking into account the demand for individual programs, evolving labour market conditions and the need to provide continued value for money. The recalibration complements the withdrawal of stimulus that is already built into the design of the fiscal strategy. The Government will continue to monitor the stimulus program, as well as its overall fiscal settings, to ensure they remain suited to economic conditions.

Further information can be found in the joint press release of 16 October 2009 issued by the Deputy Prime Minister, Minister for Employment Participation and the Parliamentary Secretary for Employment.

Higher Education — contribution to Australian Education International investment — transfer of promotion functions

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Australian Trade Commission - - 8.6 8.6 8.7
Department of Education, Employment and Workplace Relations - -1.3 -11.1 -11.1 -11.1
Total - -1.3 -2.5 -2.5 -2.4

The Government will transfer responsibility for the international promotion of Australian education from the Department of Education, Employment and Workplace Relations to Austrade from 1 July 2010.

This will reduce administrative duplication between the agencies, facilitate a whole‑of‑government approach to the promotion of Australian education overseas, and harmonise the promotion of education with that of other Australian goods and services.

This transfer will result in savings of $8.6 million over four years.

Higher Education Loans Program for fee‑paying undergraduate students — increased administration fee

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - - -9.0 -8.4 -7.9
Department of Education, Employment and Workplace Relations - - 3.2 5.7 8.7

The Government will increase the annual administration fee under the Higher Education Loans Program (HELP) for fee‑paying undergraduate students from 1 July 2010. The annual administration fee will increase from 20 to 25 per cent of the student's annual course fees.

The Review of Australian Higher Education (Bradley Review) recommended the fee increase to enable the Government to recover a higher proportion of the debt and deferral costs associated with providing loans to undergraduate fee‑paying students.

This measure will provide savings of $42.8 million over three years.

Jobs and Skills for a Low Pollution Future — insulation‑related training and ongoing pathways

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

The Government will provide $14.7 million over four years to provide an additional 2,000 places under the Australian Apprenticeship Access Program and an additional 2,000 places under the Language, Literacy and Numeracy Program. The additional places will assist long‑term unemployed and low‑skilled workers to enter the workforce through the Energy Efficient Homes Package and assist them to acquire further skills and knowledge to improve their long‑term employment prospects.

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

Further information can be found in the press release of 30 July 2009 issued by the Prime Minister.

Jobs and Skills for a Low Pollution Future — National Green Jobs Corps

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 20.7 39.3 19.6 -
Centrelink - 2.0 0.5 0.4 -
Total - 22.7 39.8 20.0 -

The Government will provide $82.5 million over three years to establish 10,000 environmental and heritage training and work experience placements, lasting 26 weeks, for young people aged 17 to 24.

This initiative is available to young people who are: in receipt of Youth Allowance (other), Newstart Allowance or Parenting Payment who work less than 15 hours a week; in receipt of Disability Support Pension with an assessed work capacity of more than 15 hours a week; or aged 17 to 20 years who are not eligible for income support, not in full‑time education and working less than 15 hours a week.

Eligible young people will also receive the National Green Jobs Corps supplement of $41.60 per fortnight. National Green Jobs Corps will run from 1 January 2010 to 31 December 2011. Eligible young people will undertake accredited training at Certificate level 1 or above.

Further information can be found in the press release of 30 July 2009 issued by the Prime Minister.

Safe Work Australia — establishment

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Safe Work Australia - 8.8 9.0 9.2 9.3
Department of Education, Employment and Workplace Relations - -12.8 -13.2 -13.5 -13.7
Total - -4.0 -4.3 -4.3 -4.4

The Australian Government will establish Safe Work Australia as a national independent body to lead the development of and improve occupational health and safety and workers' compensation arrangements across Australia. This new body will be responsible for harmonising the occupational health and safety laws and promoting awareness of occupational health and safety and workers' compensation.

Safe Work Australia will replace the Australian Safety and Compensation Council that operated within the Department of Education, Employment and Workplace Relations. The Australian Government will retain functions specific to implementation of harmonised occupational health and safety practices within its jurisdiction, including matters that impact on criminal law and processes for which the Australian Government is responsible.

The Australian Government will contribute $36.3 million over four years to fund 50 per cent of Safe Work Australia; the remaining 50 per cent will be funded by the States and Territories in proportion to their population. The abolition of the Australian Safety and Compensation Council and the transfer of functions to the new body will result in a net saving of $17.0 million over four years.

Further information can be found in the press release of 7 September 2009 issued by the Minister for Education, Employment and Workplace Relations.

Student Amenities Higher Education Loans Program — deferral

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - -28.3 - - -

The Government will delay by 12 months the introduction of the Higher Education Loans Program for Student Amenities fees.

The Student Amenities Higher Education Loans Program (SA‑HELP) will provide loans, capped at $250 per student per year, to ensure that student amenities fees are not a financial barrier to participation in higher education.

This measure will provide savings of $28.3 million in 2009‑10 as a result of reduced debt and deferral costs under the Higher Education Loans Program.

Student income support — delay increase in personal income test threshold

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

The Government announced in the 2009‑10 Budget that the level of income at which Youth Allowance and Austudy begins to be reduced would increase from $236 to $400 per fortnight from 1 January 2011. The Government will delay the increase in the personal income test threshold applying under Youth Allowance and Austudy. The change will now apply from 1 July 2012.

This measure will provide savings of $170.2 million over two years to offset the cost of extending the time available for eligible 'gap year' students, who need to move away from home to study, to establish eligibility for Independent status under Youth Allowance under the existing workforce participation criteria.

See also the related expense measure titled Youth Allowance — transitional arrangements for claiming independence.

Further information can be found in the press release of 26 August 2009 issued by the Minister for Education, Employment and Workplace Relations.

Student income support — various refinements

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - -0.8 -1.7 -1.7 -1.7

The Government will refine measures announced in the 2009‑10 Budget as part of An Innovation and Higher Education System for the 21st Century — Student Income Support.

The refinements include:

  • $4.9 million over four years to provide more generous income testing arrangements for student income support. Under current arrangements, student income support payments are subject to both a parental and a personal income test. This measure will mean that only one income test is applied (whichever produces the largest reduction in payment amount);
  • $0.4 million over four years to index (according to movements in the CPI) the maximum amount of income from merit and equity scholarships that is exempt from the personal income testing for higher education student income support;
  • $2.6 million over four years to provide a $4,000 payment to eligible dependent higher education students who move away from home after their first year of study; and
  • Providing that the special circumstances under which the Relocation Scholarship is payable to independent students, will not include students who are married or in a de facto relationship. This refinement of the eligibility criteria for accessing the Relocation Scholarship will provide savings of $13.8 million over four years.

This measure will provide overall net savings of $5.9 million over four years.

Youth Allowance — transitional arrangements for claiming independence

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Education, Employment and Workplace Relations - 7.6 47.3 47.4 47.6

The Government will provide $149.9 million over four years to put in place transitional arrangements for establishing eligibility for Independent status under Youth Allowance. Under this measure, students who completed school in 2008, who have taken a 'gap year' in 2009, and who need to move because their family home is located more than 90 minutes away from the university of their choice, will have until 1 July 2010 to establish eligibility for Independent status under the existing workforce participation criteria.

The Government announced in the 2009‑10 Budget that two of the three workforce participation criteria for establishing eligibility for Independence under Youth Allowance would be removed from 1 January 2010. This measure extends access to these workforce participation criteria to 'gap year' students for six months. These students will remain eligible for Youth Allowance as independent students for the duration of their course.

See also the related expense measure titled Student Income Support — delay increase in personal income test threshold.

Further information can be found in the press release of 26 August 2009 issued by the Minister for Education, Employment and Workplace Relations.

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