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Priorities and New Initiatives

Skills for Sustainable Growth

A fairer, stronger and more prosperous future for the nation depends on our ability to act on immediate and longer term skills challenges and improve employment opportunities for disadvantaged job seekers. This will ensure that all Australians can benefit from, and participate in, the economic recovery.

The Skills and Infrastructure Budget package will deliver jobs for Australian workers, improve the supply of skilled labour in high demand sectors and locations, make significant further reforms in Australia's vocational education and training (VET) system and tackle the language, literacy and numeracy deficits that hold back the economic participation and productivity of disadvantaged job seekers and workers. The package will address these skills challenges in three major ways:

1. By responding quickly and decisively to skills hotspots that will likely emerge as the economy recovers and grows.
2. By investing in language, literacy and numeracy initiatives and support for adult Australians to ensure they have the core skills needed to be work-ready.
3. By improving the quality of skills training to build a world-class VET system that is responsive to emerging skills demands and engages more Australians in training.

The Skills for Sustainable Growth strategy is an investment of more than $660.0 million to address skill shortages, lift foundation skills and reform and improve access to VET. The Government's commitment to the deficit reduction strategy requires offsetting savings for new spending. This has been achieved through bringing forward the
2013—14 provision for the National Partnership Agreement for the Productivity Places Program ($375.9 million), and re-prioritising a further $80.0 million from this program; and re-prioritising spending from the Fast Track Apprenticeships program ($30.8 million), the innovation element of the Additional Apprenticeships Incentives program ($31.9 million), and the RTO element of the Securing Australian Apprenticeships initiative ($7.9 million).

1. Skills for recovery

To ensure that Australia's recovery is sustainable, the nation needs to ensure that workers' skills can be matched with the right work opportunities and industries.

Trade vacancy data show a recovering demand for a range of skills—particularly in the construction, metal and automotive trades. At the same time, the demand for some skills is declining with the development of new technologies, with workers needing to be up-skilled or re-skilled.

Apprenticeships are a key pathway to meet the skills needs of Australian industry and engage young people in employment and training. However Australia's apprenticeship system was hit particularly hard by the economic downturn and we need to re-build a strong and robust system to meet this growing demand.

The skills for recovery component of the strategy responds swiftly, and in a targeted way, to the emerging skills shortages in the economy. The Australian Government will work with industry and training providers to provide working-age people with the skills needed for sustaining growth in a dynamic economy. Skills training can take a number of years, particularly in traditional trades, so it is important the Government acts now to avoid serious skills shortages in the future.

The skills for recovery component of the strategy consists of $299.5 million invested in three key initiatives.

2. Foundation skills package

Around 4.5 million working-age Australians, including an estimated 40 per cent of Australian workers, do not have the basic literacy and numeracy skills needed in a modern workforce.

Further, around 60 per cent of unemployed Australians do not have the necessary foundation skills to successfully complete a Certificate III qualification.¹³

The Australian Government is committed to tackling deficits in language, literacy and numeracy skills to boost the employment and earning prospects of working-age Australians.

Strengthening the language, literacy and numeracy capacity of the workforce is perhaps the single most constructive step that can be taken to make Australia more productive over the long term.

An additional investment of $119.2 million will be made to bring the total number of Australians benefiting from these programs to 140,000. This brings the total Government investment in foundation skills training and strategic initiatives over the next four years to around $490.0 million, an increase of around $250.0 million over the last four years of the previous government.

This additional investment will provide adult Australians with unprecedented access to the English language, literacy and numeracy skills that are essential in modern Australia.

As well as providing additional training and trainers, the package will take steps to address the social stigma associated with low levels of language, literacy and numeracy skills.

Overcoming widespread foundation skills deficits will ensure more Australians are ready for work, are productive when in work, and can participate meaningfully in economic and social life.

The foundation skills component of the strategy consists of $119.2 million invested in three core areas.

3. A training system for the future

Australia's VET system is pivotal to the development of skills contributing to this nation's wealth and helps support social cohesion in the community. Many Australians succeed in their working lives because they have acquired skills through vocational education and training. They are living proof that you do not need to go to university to be successful.

The Government's aspirations for the future of vocational education are built around these key pillars:

• A responsive national system with qualifications of breadth, depth and intrinsic merit that meet the skills needs of the economy and provide pathways into work, learning and the community.
• A quality system with transparency in governance, funding and performance.
• An accessible system for workers, youth, communities and industry.
• A diverse system encompassing high-quality public and private providers.

The Government will invest an additional $242.5 million over the forward estimates to introduce a series of reforms to underpin the responsiveness, quality, transparency and accessibility of vocational education.

Building strong foundations and infrastructure

Land transport investment

Infrastructure is critical to future productivity growth and Australia's continued prosperity, driving improved living standards and greater liveability in every community. The Rudd Government inherited an infrastructure deficit as a result of years of underinvestment and is committed to repairing this deficit to ensure that Australia has the infrastructure it needs.

The Government has embarked upon an unprecedented infrastructure investment program, investing $37.0 billion in land transport infrastructure across Australia, over the six year period from 2008—09 to 2013—14. The Government continues to roll out the most significant range of infrastructure activities in our nation's history, supporting jobs, productivity and sustainability right across the country.

This investment is vital to strengthening the national economy and enhancing the nation's capacity to access opportunities to prosper. It will benefit the nation by addressing capacity constraints, developing Australia's national road and rail network, relieving traffic congestion, improving road safety, and improving connections with major cities and ports.

Nation Building agenda

The nation building agenda will invest over $5 billion in road, rail and port initiatives in 2010‑11. This will drive Australia's long-term productivity and international competitiveness, support jobs and stimulate the economy.

This funding is part of the Australian Government's $37.0 billion investment in Australia's land transport infrastructure. Projects will be funded across the interstate transport network as well as to freight corridors connecting regional Australia with major cities and ports.

Nation Building Plan for the Future

The Nation Building Plan for the Future allocated $8.5 billion from the 2009—10 Budget for nationally significant transport infrastructure projects across Australia that are critical to boosting our economy's productivity.

Projects will help to connect our regional areas with major towns and cities and with commercial and export markets. They will increase the efficiency of freight and passenger transport, and will help bring about long-term economic benefits to our regions.

Work is progressing well on the $3.25 billion Regional Rail Link in Victoria, the largest public transport infrastructure project in Australia. This project will provide a 40 kilometre dual track link from West Werribee to Southern Cross Station. The Regional Rail Link will deliver capacity for an extra 9,000 regional and suburban passengers to and from Melbourne CBD every hour. Work has already commenced on extending Platforms 15 and 16 at Southern Cross Station. Major construction is expected to commence in 2010 and is scheduled for completion in 2014.

Rail productivity improvements

The 2010—11 Budget continues the most sweeping rail investment in the nation's history with a further $996.0 million in funding for freight rail productivity package.

Reforming infrastructure investment

The Rudd Government has injected unprecedented levels of investment into infrastructure in Australia and has led national reform of the way infrastructure is planned, managed, funded and delivered across the country.

Infrastructure Australia was established in 2008 to drive evidence-based infrastructure planning and investment and to advise governments on infrastructure reform.

Infrastructure Australia has already undertaken a national audit of infrastructure, and identified a pipeline of projects and a national infrastructure priority list. In 2010, it will advise COAG on a national ports strategy and a national freight strategy to ensure our critical export infrastructure is well planned and coordinated.

The Rudd Government is removing impediments to national transport efficiency by establishing national regulators for heavy vehicles, rail safety and investigation and maritime safety. These national regulators will reduce business' costs, improve safety and enhance our national competitiveness.

Securing the future of Australia's aviation industry

In December 2009, the Australian Government released the National Aviation Policy White Paper (the White Paper). This represents the first ever comprehensive aviation policy statement issued by an Australian government, bringing together all strands of aviation policy into a single, forward-looking document providing planning, regulatory and investment certainty for the aviation industry out to 2020 and beyond.

The White Paper sets out the Government's commitment to a continuation of Australia's excellent aviation safety record and to strengthen aviation security systems, while providing a policy framework for the development of the aviation industry at all levels—international, domestic, regional and general aviation including through skills and productivity improvements. It sets out initiatives to ensure better planning and integrated development on and around airports and to lessen the adverse effects of aviation activity on the environment and communities.

More than any other country, Australia relies on aviation to overcome the tyranny of distance. Our vast country separates Australians from each other and from the rest of the world. Despite our increasing reliance on electronic communications today, when we need to connect physically with business associates or with friends and family in distant places, or to simply receive freight, medical services and the mail, we will continue, perhaps more than ever, to rely on air services.

Consolidation of existing remote aviation programs into a single program

Through the White Paper, the Australian Government announced that it will improve the effectiveness of its remote aviation programs by integrating infrastructure and service delivery components through the consolidation of remote aviation support programs into the Regional Aviation Access program. This will result in a single program with a 2010—11 Budget allocation of $25.1 million.

The Government has already acted to bring these programs together administratively. Integrating the programs will help ensure that support for remote air services and aerodromes is better coordinated and will provide greater flexibility in allocating funding, based on the greatest need.

The following programs will be consolidated under the Regional Aviation Access program.

Remote Aerodrome Inspection program

The Australian Government's Remote Aerodrome Inspection program provides an aerodrome inspection service for 59 designated Indigenous communities. Normally, aerodrome inspections of this type would be the responsibility of the aerodrome owner/operator. However, they require specialised technical expertise not readily available in remote communities.

This service is seen as a practical way of assisting remote communities heavily reliant on air services. The program also facilitates training of aerodrome reporting officers as required for compliance with aviation safety regulations.

Remote Air Services Subsidy scheme

The Remote Air Services Subsidy (RASS) scheme subsidises weekly passenger and freight air transportation to communities which would otherwise have no regular access to transport. In 2008—09, the scheme carried over 3,500 passengers and over 265,000 kg in freight and mail to 244 remote communities (including 78 Indigenous communities) in 10 remote regions across the Northern Territory, Western Australia, South Australia, Queensland and Tasmania.

Remote Aviation Infrastructure Fund

The Government has provided an additional $5.9 million over two years to the Remote Aviation Infrastructure Fund to upgrade remote airstrips in Indigenous communities that receive a RASS service and are identified as requiring priority work. These upgrades will make them safer and more accessible. The airstrips are a vital lifeline, allowing those living in these areas to be supplied with essential items such as medical and business supplies, fresh food and long-distance educational materials.

Remote Aerodrome Safety program

The Remote Aerodrome Safety program assists in funding upgrades to airstrips in remote and isolated communities across Australia. Projects funded under the program help improve the safety and accessibility of airstrips and facilitate the provision of non-commercial essential community air services including delivery of food supplies, community mail, passenger transport services, medical supplies and medical care.

Investment in Australia's aviation safety, security and capacity

The 2010—11 Budget exemplifies the Government's commitment to the continuation of Australia's excellent aviation safety record, to strengthening aviation security systems, and to the identification of additional aviation capacity. These new initiatives will boost the strength of the Australian aviation industry, a major economic driver, supporting more than 50,000 jobs directly and half a million jobs indirectly and injecting nearly $6.3 billion into the economy.

Building community infrastructure

The Government's funding of critical community infrastructure needs, through a range of initiatives, is playing a key role in contributing to improving social inclusion, and the liveability and sustainability of communities. This investment is also playing a key role in maintaining economic growth and activity, and supporting employment to reduce the impact of the global recession within local communities.

The Government has now invested over a billion dollars in community infrastructure projects across the nation. This investment was through a portfolio of initiatives that include:

• The Regional and Local Community Infrastructure program that provided $1.0 billion to local government authorities to support jobs and continue the process of building and modernising infrastructure that revitalises communities and promotes long-term economic, social and environmental sustainability across the nation.
• The Better Regions program that will provide $110.9 million in 2010—11 to assist regions build on their strengths, improve liveability and create jobs. The program is designed to fund projects that have been identified as priority investments by local communities.
• National Bike Path projects—a $40.0 million initiative, that will provide $14.5 million in 2010—11. The program will provide employment and training opportunities through providing cycling infrastructure for Australia.
• Infrastructure employment projects provide funding for one-off capital projects. Funding may be provided for infrastructure projects where there is an identified community need, to help address the impact of economic downturn, or for projects in areas suffering from other external shocks such as large scale fire or flood events.

This complements related measures such as the Local Government Reform Fund and the Local Government Financial Assistance Grants.

The Government will continue to invest in local community infrastructure and ensure that it supports longer term economic development and social and environmental sustainability of local governments and their communities.

Supporting development in north-western Australia

The Rudd Government is investing in infrastructure in the remote northern parts of the country to help address key deficiencies in health, housing, education and community infrastructure. Many projects will be underway in 2010 and all projects will be completed by mid 2012.

The East Kimberley region in Western Australia, including its Indigenous communities, is benefitting from a significant injection of funds from the Australian Government. Through the East Kimberley development package and the Office of Northern Australia, the Government is contributing $203.2 million over 2008—09 to 2011—12 to support economic development and reinvigorate essential community infrastructure in Kununurra and the surrounding region.

Local Government

The Australian Government is providing funding of $25.0 million under the Local Government Reform Fund in 2009—10 and 2010—11, with $24.0 million to be delivered to the states and territories under a National Partnership Agreement covering a range of innovative and collaborative reform projects. The balance of funding of $1.0 million will be used to support the collection and analysis of nationally consistent local government data. Improved national data capabilities will bolster local government's workforce planning ability and support states and territories reforms to increase business, asset and financial planning capacity.

The Rudd Government is providing a record $2.0 billion in local government financial assistance grants in 2010—11, including an estimated $1.35 billion for rural and regional councils and shires to deliver basic services, maintain roads and upgrade community facilities.

To assist local councils with planning for the recovery and to ensure local government has maximum certainty to begin planning their 2010—11 works programs, the first instalment of 2010—11 payments will be paid early, with some $511.6 million going to councils before the end of 2009—10.

Local Government Financial Assistance Grants are provided under the Local Government (Financial Assistance) Act 1995. They have a general purpose and an identified local road component, both of which are untied to enable councils to fund local infrastructure and service priorities.

South Australian councils will also receive $15.5 million in supplementary local road funding in 2010—11 to address the relative disadvantage of South Australian councils in the local road component of the Financial Assistance Grants.

Attorney-General's

The Rudd Government continues its commitment to Australia's Indian Ocean Territories by providing economic stimulus over four years and opportunities for local small businesses to further contribute to the sustainable growth of the Christmas and Cocos (Keeling) Islands' economies.

This package is in addition to the $50.0 million provided in December 2009 to improve power and waste water infrastructure on Christmas Island and to fund additional health and education professionals. The new funding will ensure the continuation of these vital services as well as provide new housing, improved waste management and additional support for services to the island.

Broadband, Communications and the Digital Economy

National Broadband Network

In April 2009, the Government established a new company (NBN Co. Limited) to build and operate the National Broadband Network. The company will invest up to $43.0 billion to build the network over eight years, which will initially be publicly owned. With this funding the Government aims to:

• connect 90 per cent of all homes, schools and workplaces with optical fibre, fibre-to—the-premises or 'FTTP', providing broadband services to Australians with speeds of up to 100 megabits per second (50 times faster than most people experience today)
• connect all other premises in Australia with next generation wireless and satellite technologies that will deliver 12 megabits per second or more.

NBN Co. Limited announced on 2 March 2010 the five first release sites to receive high-speed fibre-to-the-premises broadband on mainland Australia, as part of live trials of its network design and construction methods. These are:

• part of the suburb of Brunswick in Melbourne
• an area of Townsville covering parts of the suburbs of Aitkenvale and Mundingburra
• the coastal communities of Minnamurra and Kiama Downs south of Wollongong
• an area of west Armidale, NSW, including the University of New England
• the rural town of Willunga in South Australia.

These sites are in addition to the three communities in Tasmania (Scottsdale, Smithton and Midway Point) where the National Broadband Network is being rolled out and will be offering services from July 2010.

As part of the National Broadband Network initiative, the Government has entered into a $250.0 million agreement with Nextgen Networks to rollout approximately 6,000 km of regional backbone fibre links benefiting more than 100 regional locations on route to six priority locations. The new competitive backbone links will assist service providers to deliver higher quality and lower cost broadband and phone services to regional consumers.

Construction is underway and all routes are expected to be completed by mid-2011, although shorter links are expected to be delivering services much earlier. This investment in competitive backbone is expected to create more than 1,000 full-time equivalent jobs and will provide economic stimulus to regional locations during the construction and operation phases.

This is a major nation-building project that will support 25,000 jobs every year, on average, over the eight-year life of the project. Given the productivity gains associated with this investment, the full benefits will continue to flow for decades beyond the completion of the project.

The Government has released the Implementation Study into the National Broadband Network. The comprehensive report was prepared by McKinsey & Company and KPMG and has 84 recommendations for the Government about the National Broadband Network. These cover the technology, financing, ownership, policy framework, and market structure of this important infrastructure project. The study confirms that high-speed broadband for all Australians is achievable, and can be built on a financially viable basis with affordable prices for consumers. The Government will carefully consider the recommendations in the Implementation Study, and the feedback received from public consultation, before it makes final decisions relevant to the National Broadband Network rollout and operation.

Defence

Education, Employment and Workplace Relations

Early childhood education and care

The Government continues its commitment to quality early learning and child care for all Australian children, commenced through the $293.0 million National Partnership Agreement on Indigenous Early Childhood Development. This provides for the establishment of at least 35 Children and Family Centres across the country by 2014. This funding covers both the construction and operations of the centres. The Children and Family Centres are targeted at addressing the needs of Indigenous families and their young children and will also provide services to all families in the community.

The Australian Government is also progressing with its commitment to establish 38 Early Learning and Care Centres. It allocated $114.5 million over four years in the 2008—09 Budget to establish the centres in priority locations (including six Autism-specific centres). The funding includes both the capital costs and the ongoing costs of establishing additional child care places, including Child Care Benefit and the Child Care Rebate. 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. Where possible, these centres are being located on school grounds, TAFE, university or other community land.

Environment, Water, Heritage and the Arts

Families, Housing, Community Services and Indigenous affairs

Social housing

The Government recognises the important role public and community housing plays in providing safe, secure and affordable housing for Australians and their families.

The Government is investing $5.6 billion over four years from 2008—09 for the construction of more than 19,300 new social housing dwellings and repair and maintenance works that will benefit some 70,000 existing dwellings.

The new homes will be owned by public housing authorities and not-for-profit housing organisations and rented to people on priority waiting lists. It will be a priority to provide accommodation to people who have been homeless and those on low incomes who are struggling in the private rental market.

Remote Indigenous housing

The Government is providing $5.5 billion over 10 years from 2008—09 to lay the foundations for major reforms to Indigenous housing in remote Australia.

The funding is provided under the Remote Indigenous Housing National Partnership with all states and the Northern Territory and will mean up to 4,200 new houses are built and 4,800 major upgrades are made to existing houses over a 10 year period to ease the housing shortage and improve living conditions for over 9,000 Indigenous families living in remote communities.

Governments are working together to improve housing delivery in remote Indigenous communities by developing better ways of managing new construction and by improving property and tenancy management practices.

Local people will be provided with training and real job opportunities, learning trades through construction work, and working on property management, such as ongoing repairs to, and maintenance of, the houses.

This package will also ensure land tenure arrangements are in place where new houses are being built and upgraded and is a critical first step for housing reform and for fostering economic development in Indigenous communities. Without long-term tenure, ownership and responsibility for ongoing maintenance is uncertain and residents and tenants have no security or certainty.

The Australian Government, the states and the Northern Territory will also work towards clearer roles and responsibilities with respect to the provision of municipal services and essential services in Indigenous communities.

Housing investment for the benefit of Indigenous people in remote Indigenous communities is a central plank in achieving the targets for closing the gap on Indigenous disadvantage.

Additional maintenance funding for Aboriginal Hostels Limited

Aboriginal Hostels Limited (AHL) is the largest provider of temporary accommodation for Indigenous Australians in remote and regional areas and plays a significant role in ensuring that Indigenous people have access to safe and healthy accommodation and services across Australia, including in regional and remote areas.

The Government has invested $6.9 million for Aboriginal Hostels Limited to undertake necessary repairs and refurbishments to a number of its hostels. AHL provides 3,000 beds and 9,000 meals every day to Indigenous people staying at the hostels that it operates or funds through its community grants program.

Housing Affordability Fund

The Rudd Government's Housing Affordability Fund (HAF) is designed to increase housing supply, particularly for Australians on the lowest incomes, and is vital to improving housing affordability. With an investment of $512.0 million, HAF helps to reduce the costs incurred by homebuyers as a result of planning delays and infrastructure costs, by contributing to development costs such as water sewerage, transport and the provision of open space.

HAF investments produce great outcomes for new home buyers in rapidly growing urban areas across Australia. Savings to the developer resulting from HAF funding must be passed on to the homebuyer as a condition of the funding, with many homebuyers in surrounding areas benefitting from planning reform—getting approvals faster and avoiding unnecessary holding costs.

Thirty-seven projects shared in around $120.0 million under Round One of the Housing Affordability Fund and the savings generated are already being passed onto homebuyers. Under Round Two, as at 7 May 2010, the Government has announced a further $90.0 million in funding for 19 separate projects. This includes 10 projects—worth $30.0 million—in Western Australia.

Foreign Affairs and Trade

Improved passport integrity and strengthened issuance systems

The Australian Government, through the Department of Foreign Affairs and Trade, is responsible for delivery of the Australian passport.

Passports are necessary for the travel of Australians for business and private purposes. Overseas and in Australia, passports are used to prove identity to secure services, including financial services. The Australian passport system is thus a critical part of our national infrastructure.

Health and Ageing

Penrith Valley Sports Hub

The Australian Government will contribute a total $5.0 million to the Penrith City Council for the Penrith Valley Sports Hub Project. The project will deliver improved grandstand facilities and public amenities at Penrith Stadium; an expanded cricket facility at Howell Oval including new change rooms, public amenities, umpire and medical treatment rooms and enhanced indoor cricket training and administration areas. The redevelopment of the Penrith Valley Sports Hub will create a high quality community sports hub which is capable of hosting future major sporting events as well as supporting the needs of a growing community. The $1.0 million commitment in 2010—11 fulfils the Government's $5.0 million election commitment to the project.

More zero real interest loans for aged-care beds in areas of high need

The Australian Government will provide an additional $300.0 million in zero real interest loans to support and encourage construction and investment in the residential aged care sector in areas of high need. These loans will support the construction of an additional 2,500 aged care places in areas of high need. The allocation of zero real interest loans will be done in two equal rounds of $150.0 million and 1,250 places each, in conjunction with the 2010—11 and 2011—12 Aged Care Approvals Rounds. Proposals will be sought from suitable aged care providers to build new facilities or expand existing facilities in identified priority areas. The net impact of this measure will be $145.0 million over four years.

Innovation, Industry, Science and Research

Commonwealth—Australian National University Strategic Relationship—$37.9 million

The Australian Government is funding the construction of dedicated premises for the Australian National Institute for Public Policy, the National Security College and the Australian Centre for China in the World which have all been created as part of the reinvigorated strategic relationship with the Australian National University.

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¹³ Derived from the Adult Literacy and Life Skills Survey, ABS 2007

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