Australian Government, 2011‑12 Budget
Budget

Part 2: Expense Measures (Continued)

Education, Employment and Workplace Relations

Building Australia's Future Workforce — linking job seekers with a disability to national employers

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations

The Government will provide $1.0 million in 2012‑13 to fund up to ten disability employment broker projects, to help create job opportunities for people with disabilities and build relationships with employer and industry groups.

This measure will deliver information and training to targeted employer and industry groups to improve their knowledge of Government programs and services that support the employment of people with a disability. In addition, it will facilitate the delivery of training to increase employers' confidence in working with people with a disability.

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

Building Australia's Future Workforce — wage subsidies for people with a disability

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 4.0 3.6 3.6

The Government will provide $11.3 million over three years to provide wage subsidies to employers to help job seekers with a disability gain paid employment experience. Wage subsidies will be paid for approximately an additional 1,000 job seekers registered with a Disability Employment Service provider and who have been unemployed for at least 12 months. A new subsidy rate of $3,000 will be available for this group of job seekers for employment placements for a minimum of 26 weeks at 15 or more hours a week. These will be introduced to facilitate the creation of new and sustainable jobs for people with disability. The new wage subsidies will commence on 1 July 2012.

This measure will also provide a payment of $2,000 for employers under the Supported Wage System program to assist with the costs of training and supervising employees whose work productivity is reduced due to their disability. This employer payment will be available if a disabled worker is employed under the Supported Wage System program for 26 weeks at 15 or more hours per week by the employer.

Building Australia's Future Workforce — wage subsidy for the very long‑term unemployed

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 11.5 26.4 27.0 27.6
Department of Human Services 1.3 0.2 0.2 0.2
Total 12.8 26.6 27.2 27.8
Related capital ($m)
Department of Education, Employment and Workplace Relations 0.3
Department of Human Services
Total 0.3

The Government will provide $94.6 million over four years (including capital funding of $0.3 million in 2011‑12) to provide wage subsidies to help very long‑term unemployed job seekers gain paid employment experience to help them transition into paid employment.

The subsidy will be paid to employers and will be set at the average rate of the Newstart Allowance. The subsidy will be paid over six months and will commence from 1 January 2012.

Job Services Australia and Disability Employment Services providers will be responsible for selecting job seekers and placing them into subsidised employment. Employers will be eligible for the subsidy if they employ people who:

  • have been on income support for at least the last two years;
  • are currently participating in Job Services Australia or Disability Employment Services; and
  • have had no or minimal recent paid employment.

It is anticipated that approximately 10,000 job seekers per annum will attract this wage subsidy.

Building Australia's Future Workforce — accelerated Australian Apprenticeships

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 22.4 22.1 22.0 14.2

The Government will provide $100.0 million over four years to assist industry in developing and implementing strategies that lead to the incorporation of competency based progression in Australian Apprenticeships. Under this measure, Industry Skills Councils and peak industry bodies will partner with employers, training organisations and other key stakeholders to deliver around 24 major partnerships targeted at industries facing skill shortages. The projects will be selected on a competitive basis and will include an industry co‑contribution.

The measure also includes:

  • the development of a legal clause to be incorporated into modern awards which would allow for competency based progression in Australian Apprenticeships.
  • $0.8 million in 2011‑12 to fund a scoping study for the development of an online Skills Builder. The online Skills Builder will enable individuals to create their own skills or learning record that would enable them to identify training needs, match their skills with suitable job opportunities, and assist with competency based progression; and
  • the cessation of funding for the Smarter Apprenticeships program announced in the 2010‑11 Budget as part of the Skills for Sustainable Growth package, as the intent of this program will be better met supporting the enhanced competency based progression initiatives under this package. This will provide savings of $19.2 million over three years.

Building Australia's Future Workforce — additional Workforce English Language and Literacy Program places

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 2.8 4.3 5.3 7.5

The Government will provide $20.0 million over four years to provide additional training places for workers with low language, literacy and numeracy skills.

The funding will provide approximately 13,000 additional training places over four years under the Workforce English Language and Literacy Program. This measure will assist organisations up‑skill their workers so they can better participate in the workforce.

Building Australia's Future Workforce — Apprenticeship mentoring

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 31.8 29.6 20.0 20.0

The Government will provide $101.4 million over four years to provide mentoring support services to Australian apprentices. The measure will extend the 2010 election commitment Trade Apprentice Mentoring, which will provide $20.0 million in 2011‑12 to fund mentoring services for up to 40,000 apprentices in traditional trades.

The measure will include $59.9 million over three years for targeted mentoring and support services for around 10,000 apprentices per year employed in traditional trade occupations in industries experiencing skills shortage. Australian Apprenticeships Centres, Industry Skills Councils and other peak organisations will be able to apply for funding to deliver mentoring services through a competitive funding round. This measure is to increase retention and rates of completion for Australian Trade Apprentices.

The measure will also provide a further $21.5 million over two years for up to 144 apprentice advisors per year to assist school leavers better understand what is involved in a trade apprenticeship and to assist them to pursue suitable employment and training pathways.

This measure delivers on the Government's election commitment.

Building Australia's Future Workforce — Australian Apprentice Access Program — continuation of funding arrangements

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 6.5 6.6 6.7

The Government will provide $19.7 million over three years to continue the enhanced brokerage arrangements introduced in the 2009‑10 Budget.

The Australian Apprenticeships Access Program provides nationally recognised pre‑vocational training to assist jobseekers to transition into apprenticeships. The enhanced brokerage arrangements were introduced to encourage brokers to provide more tailored support to participants and to provide greater incentives for brokers to achieve positive outcomes for jobseekers.

Building Australia's Future Workforce — Australian Apprenticeship Incentive Program Certificate II incentives — realignment

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑7.1 ‑17.6 ‑17.7 ‑16.6

The Government will realign the Australian Apprenticeships Incentive Program to better target incentives.

From 1 July 2011 eligibility requirements for Standard Commencement incentives at the Certificate II level will be limited to employers of apprentices in the priority groups of Indigenous, people with disabilities, mature‑aged, and school‑based apprentices.

This will provide savings of $59.0 million over four years, which will be redirected to support other measures within the Building Australia's Future Workforce package.

Building Australia's Future Workforce — changes to the eligibility criteria for Youth Allowance (Other) and Newstart Allowance

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Human Services 7.5 3.1 2.2 2.2
Department of Education, Employment and Workplace Relations 1.2 ‑49.6 ‑73.4 ‑77.2
Department of Families, Housing, Community Services and Indigenous Affairs .. .. .. ..
Total 8.7 ‑46.5 ‑71.2 ‑75.0

The Government will improve study and work incentives for unemployed young people and extend strengthened participation requirements by changing the eligibility criteria for Youth Allowance job seeker (YA (Other)) and Newstart Allowance (NSA) recipients.

Under this measure, from 1 July 2012, eligibility and the parental means test for YA (Other) recipients will be extended to 21 years of age (currently 20 years of age). Newstart Allowance will be closed to new applicants under 22 years of age (currently under 21 years of age).

To improve returns from work this measure will also raise the YA (Other) income free area from $62 to $143 per fortnight and the maximum available Working Credit bank limit for YA (Other) will increase from $1,000 to $3,500. This will increase the capacity for recipients to earn income before it starts reducing their benefit.

This measure will also extend participation requirements introduced under the 2009‑10 Budget measure Jobs and Training Compact — improved participation requirements for 15 to 20 year olds to YA (Other) recipients who are 21 years of age and are classified as an early school leaver.

This measure will provide savings of $183.9 million over four years.

Savings from this measure will be redirected to support other initiatives within the Building Australia's Future Workforce package.

Building Australia's Future Workforce — Compulsory Participation Plans and Support for Teenage Parents — targeted locations

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Human Services 9.7 4.7 2.0 2.0
Department of Education, Employment and Workplace Relations 2.1 5.4 8.6 8.9
Department of Families, Housing, Community Services and Indigenous Affairs 2.0 0.6 0.7 0.7
Total 13.8 10.6 11.3 11.6

The Government will provide $47.3 million over four years to support the long‑term participation and productivity of teenage parents by addressing barriers to completion of education.

Teenage parents accessing Parenting Payments for the first time from 1 January 2012 in 10 targeted Local Government Areas (LGAs) will be required to attend six‑monthly interviews with Centrelink once their child turns six months old. Once the child is one year old, this interview will be used to develop and implement a participation plan, which will include activities to improve education outcomes for themselves and their children.

The compulsory participation plans will focus on supporting teenage parents in achieving educational qualifications to assist them to gain future employment. Education pathways covered by the plan could include school completion, foundation skills, or certificate level qualifications. Support for plans and regular interviews will continue until the participant achieves a year 12 or equivalent qualification or until their child turns six years old.

The measure also enhances support services provided through Communities for Children sites in the 10 targeted LGAs to assist teenage parents achieve outcomes under their participation plans. Services may include facilitated playgroups and parenting programs aimed at developing skills for young parents. Parents may also be eligible for support with costs of childcare through the Jobs, Education and Training Child Care Fee Assistance program.

Funding is also provided so parents can benefit from access to Youth Connections which will provide additional support to help them connect with school or training.

Building Australia's Future Workforce — Compulsory participation requirements for jobless families — targeted locations

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Human Services 12.0 8.7 6.7 6.7
Department of Families, Housing, Community Services and Indigenous Affairs 0.7 6.1 6.2 6.4
Department of Education, Employment and Workplace Relations 0.3 4.4 6.2 6.8
Total 13.0 19.2 19.2 19.8

The Government will provide $71.1 million over four years to introduce new participation requirements and support services for parents who have been on income support for more than two years or who are under 23 years of age in 10 targeted Local Government Areas (LGA's). Parents will be required to attend compulsory workshops and interviews with Centrelink to set personal and family goals. They will also be assisted to access services to overcome pre‑vocational barriers to employment, engage with their community and improve health and education outcomes for their children. The new requirements and support services will commence on 1 July 2012 and will be available in 10 targeted locations.

This measure includes $19.4 million in funding for Communities for Children (CfC) services. CfC services in these 10 targeted LGA's will provide support for children and families to assist in meeting the requirements of participation plans. The measure will also extend the Jobs, Education and Training Child Care Fee Assistance program, which covers the gap fee for child care, from 26 weeks to 52 weeks to support parents' participation in employment related activities in these locations.

Building Australia's Future Workforce — evaluation

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 2.3 2.9 3.2 1.0
Department of Finance and Deregulation 0.1
Total 0.1 2.3 2.9 3.2 1.0

The Government will provide $9.5 million over five years to monitor and evaluate measures announced as part of the Building Australia's Future Workforce package.

The evaluation will assess the impact of the package on the social and economic participation of affected individuals, examine the benefits of strategies in targeted locations, and provide an assessment of the accessibility and effectiveness of services delivered to targeted communities.

This measure includes $0.1 million in 2010‑11 to reimburse the Department of Finance and Deregulation for an Implementation Readiness Assessment undertaken to advise on implementation risks.

Building Australia's Future Workforce — Group Training Australian Apprenticeships Targeted Initiatives program — cessation

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑5.7 ‑5.8 ‑5.9 ‑6.0

The Government will cease funding the Group Training Australian Apprenticeships Targeted Initiatives program to support other measures within the Building Australia's Future Workforce package. This measure will provide savings of $23.3 million over four years

The Group Training Australian Apprenticeships Targeted Initiatives program provides funding to Group Training Organisations for projects aimed at increasing the take‑up of Australian Apprenticeships.

Building Australia's Future Workforce — improved access to the Language, Literacy, and Numeracy Program

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 10.1 21.6 47.2 62.7
Department of Human Services 0.1 0.1 0.1 0.1
Total 10.2 21.6 47.2 62.8
Related capital ($m)
Department of Education, Employment and Workplace Relations 1.3

The Government will provide $143.1 million (including capital funding of $1.3 million) over four years to fund approximately 30,000 additional training places under the Language, Literacy and Numeracy Program (LLNP).

The LLNP assists job seekers of working age to achieve sustainable employment outcomes by providing up to 800 hours of free accredited Language, Literacy and Numeracy (LLN) training. To be eligible for support under the program, eligible job seekers must have LLN skills below the level considered necessary to secure sustainable employment or pursue further education and training.

This will help job seekers upgrade their skills so they can share in the opportunities of a growing economy.

Building Australia's Future Workforce — Incentives for Higher Technical Skills — cessation

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑5.7 ‑5.9 ‑6.4 ‑6.6

The Government will cease the Incentives for Higher Technical Skills program — non apprenticeship component and redirect the funding to support other measures within the Building Australia's Future Workforce package. This will provide savings of $24.7 million over four years.

Introduced on 1 January 2007, the Incentives for Higher Technical Skills were established to support the uptake of Diploma and Advanced Diploma qualifications where state or territory governments did not list the qualification as an Australian Apprenticeship. As state and territory governments have increasingly classified qualifications at this level as Australian Apprenticeships, these incentive payments are no longer needed.

Building Australia's Future Workforce — incentives for single parents and Parenting Payment reforms

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Human Services 2.9 6.0 2.3 2.9
Department of Education, Employment and Workplace Relations 13.0 9.2 ‑9.7
Centrelink
Total 2.9 19.0 11.5 ‑6.8

The Government will introduce reforms to encourage single parents receiving income support to transition into paid employment.

The Government will provide $178.9 million over the forward estimates to increase returns to work page 140by adjusting the income test rates for single principal carers with a youngest child under 16 years on Newstart Allowance (NSA). From 1 January 2013, the new more generous income test for those recipients will reduce NSA payments by 40 cents for every dollar of income earned above $62 per fortnight. Recipients currently have NSA payments reduced by 50 cents in the dollar for income from $62 dollars per fortnight and 60 cents for income above $250 per fortnight. This will bring the taper rate for single parents receiving NSA in line with that of Parenting Payment Single (PPS), and reward part time work.

From 1 January 2013, parents who were on PPS or Parenting Payment Partnered (PPP) prior to 1 July 2006 will be eligible for PPS or PPP until their youngest child turns 12 rather than the current 16 years. Parents that transition onto NSA will be eligible for the more generous income test taper. Transitional arrangements will apply to parents whose youngest child will be above the threshold age on implementation:

  • parents with a youngest child born before 1 January 2000 (so has turned 13 before 1 January 2013) will continue to be assessed under current arrangements and will remain on Parenting Payment until their youngest child turns 16 years of age;
  • parents with a youngest child born between 1 January 2000 and 1 January 2001 (so has turned 13 during 2013) will cease to be eligible for Parenting Payment once their youngest child turns 13 years of age; and
  • parent with a youngest child born before after 1 January 2001 (so turns 12 on or after 1 January 2013) will cease to be eligible for Parenting Payment once their youngest child turns 12 years of age.

These reforms will deliver a saving of $152.2 million over four years.

In addition to these transitional arrangements, children born after 1 July 2011 will extend Parenting Payment eligibility for parents in receipt of payment before 1 July 2006 in the same way as for parents who came onto payment after 1 July 2006. This means they will extend eligibility until they turn six (partnered parents) or eight (single parents).

In net terms, the two components of this measure will cost $26.7 million over four years.

Parents affected by these reforms will also be assisted with employment and skills support under the Building Australia's Future Workforce‑ services to assist single parents enter the workforce measure.

Building Australia's Future Workforce — increased obligations for very long‑term unemployed job seekers

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 0.3 65.9 31.4 30.0
Department of Human Services .. 1.6 1.7 1.7
Total 0.3 67.5 33.0 31.7
Related capital ($m)
Department of Education, Employment and Workplace Relations 0.7

The Government will provide $133.3 million over four years (including capital of $0.7 million in 2011‑12) to facilitate enhanced compliance arrangements for very long‑term unemployed job seekers who have been registered with Job Services Australia for two years or more.

Currently a job seeker is required to undertake an approved activity for six months in each year they are in the Work Experience Phase. From 1 July 2012, very long‑term unemployed job seekers who begin a second year in the Work Experience Phase will be required to undertake work experience for 11 months of the year. An additional $1,000 will be credited to the Employment Pathway Fund for each job seeker who commences a second year in the Work Experience Phase. This additional credit will support Job Services Australia service providers to continue to provide work experience activities including Work for the Dole, job trials and purchase of training.

Building Australia's Future Workforce — Indigenous Ranger Cadetships — pilot program

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 1.2 1.7 1.2

The Government will provide $4.1 million over three years to establish a pilot Indigenous Ranger Cadetship program to encourage school retention and completion for Aboriginal and Torres Strait Islander students.

Participating students will undertake training in natural resource management, heritage related activities and cultural studies leading to a Certificate II level qualification. The program will be piloted by six schools in 2012 and expanded to a further six schools in 2013.

The program will form part of the National Trade Cadetship initiative.

Building Australia's Future Workforce — Indigenous Youth Careers Pathways Program

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations

The Government will provide $50.7 million over four years to extend school based traineeships for Indigenous students in targeted schools through a new Indigenous Youth Careers Pathways Program.

The new program will provide:

  • school based traineeships including incentive payments to employers;
  • school based aspiration building events and activities;
  • in school and post school mentoring;
  • work experience placements and support; and
  • preparation for work activities.

The cost of this measure will be met from within existing resources of the Indigenous Employment Program (IEP) made available by realigning the program. The IEP will no longer fund activities that can be funded under mainstream programs.

Building Australia's Future Workforce — Industry Training Strategies program — redirection of funding

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑2.8 ‑2.8 ‑3.9 ‑4.0

The Government will cease funding for the Industry Training Strategies Program with the exception of the Education and Training Advisors element.

The Industry Training Strategies Program was introduced to increase the take‑up of Australian Apprenticeships, evaluate training models and increase industry confidence in the national training system.

The Government will continue to fund the Education Training Advisors element of this program which provides funding to the Australian Chamber of Commerce and Industry, Australian Industry Group and the National Farmers' Federation to employ education advisors whose role is to increase their members' understanding of the apprenticeship system and to promote increased take‑up of Australian Apprenticeships.

This measure will provide savings of $13.5 million over four years, which will be redirected to support other measures within the Building Australia's Future Workforce package.

Building Australia's Future Workforce — information campaign

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 20.6 0.6 0.6

The Government will provide $21.8 million over three years to conduct an awareness campaign to promote workforce participation and training.

The information campaign will promote the benefits of employing people who have experienced labour market disadvantage, such as people with disability and the very long term unemployed. The campaign will also ensure that employers have more information about assistance available to help them up‑skill and train their workforce.

Building Australia's Future Workforce — Job Services Australia demonstration pilots for highly disadvantaged job seekers

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 1.8 2.3 0.6

The Government will provide $4.7 million over three years to conduct 20 pilot projects that will trial innovative approaches to providing Job Services Australia services for highly disadvantaged job seekers in targeted locations.

This will include coordinating complementary services that can assist highly disadvantaged job seekers, and joint case management. The results from the place‑based demonstration pilots will inform broader Job Services Australia delivery models.

Up to 5,000 job seekers will be involved in the pilots, primarily from the most disadvantaged job seeker category of the Job Services Australia program — Stream 4.

Building Australia's Future Workforce — more help for mature age workers

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 10.0 10.0 10.0

The Government will provide $30.0 million over three years from 2011‑12 to enable Registered Training Organisations to carry out skills assessments and provide training for an estimated 7,500 mature aged workers (aged 50 years and above) who have trade relevant skills but no formal qualifications.

Registered Training Organisations will be eligible to receive up to $2,000 for each skills assessment undertaken and, where a skills gap is identified, up to an additional $2,000 to assist with the cost of training. Employers will be expected to cover any additional training costs.

This measure delivers on the Government's election commitment.

Building Australia's Future Workforce — National Partnership for Vocational Education and Training

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations
Department of the Treasury ‑137.5 238.4 ‑137.5
Total ‑137.5 238.4 ‑137.5

The Government will establish a new National Partnership to support long term reform in the vocational education and training (VET) sector. The new National Partnership will provide $1.75 billion over five years from 2012‑13 (including $715.1 million over the forward estimates and $516.3 million in both 2015‑16 and 2016‑17) to promote reforms that will lead to a more transparent VET system that delivers higher level qualifications, better recognition of skills, and which better caters to disadvantaged learners and regions.

Funding will be available to state and territory governments who make a genuine commitment to achieving reforms which complement the objectives of the revised National Agreement on Skills and Workforce Development which is expected to be in place by 1 July 2012.

This measure redirects $751.7 million of the Productivity Places Program funding over the forward estimates to better achieve skills objectives.

The Productivity Places Program was announced as part of the Government's Skilling Australia for the Future initiative in 2007. The program commenced 1 April 2008, with states and territories delivering some elements of the program from 1 July 2009 — this has been facilitated through a National Partnership of the program. The National Partnership is due to expire on 30 June 2012.

Funds from the program beyond this date have been directed to other skills priorities consistent with the scheduled expiry of the Partnership and the nature of national partnerships under the Federal Financial Relations Framework.

See also the related expense measure titled Employment Services Arrangements Package — New Enterprise Incentive Scheme — continuation and extension to Disability Employment Services job seekers.

Building Australia's Future Workforce — National Workforce and Productivity Agency

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 8.5 8.3 8.3

The Government will provide $25.0 million over three years to establish the National Workforce and Productivity Agency.

The National Workforce and Productivity Agency will be established from 1 July 2012 through an expansion of the current functions of Skills Australia, the independent statutory body that provides advice to the Government on workforce skills and development needs.

The National Workforce and Productivity Agency will develop sectoral workforce development plans, undertake research, consult industry and disseminate information on workforce planning issues. The agency will also have responsibility for administering the new Workforce Development Fund.

See also the related expense measure titled Building Australia's Future Workforce — National Workforce Development Fund — establishment.

Building Australia's Future Workforce — National Workforce Development Fund — establishment

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 74.8 77.2 77.4 126.3
Related capital ($m)
Department of Education, Employment and Workplace Relations 2.7 0.3 0.3 0.3

The Government will provide $359.3 million over four years as part of the establishment of the National Workforce Development Fund. The Fund will support enterprise based training in critical occupations in identified high need sectors in the economy. Industry will be required to make a co‑contribution toward the cost of training places based on the size of the enterprise.

In addition the Fund will incorporate the $200 million Critical Skills Investment Fund, which was announced in the 2010‑11 Budget to boost the number of workers available in skill shortage areas of national significance including the resources and construction sectors.

In total, the $558.5 million Fund is expected to support up to 130,000 training places over four years.

The new National Workforce and Productivity Agency will be responsible for administering the National Workforce Development Fund.

See also the related expense measure titled Building Australia's Future Workdforce — National Workforce and Productivity Agency.

Building Australia's Future Workforce — Priority Employment Area initiatives — extension

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 19.5 19.6
Department of Human Services 3.1 3.1
Total 22.5 22.6

The Government will provide $45.2 million over two years to extend the current Priority Employment Area initiatives, including Jobs and Skills Expos and Local Employment Coordinators, to 30 June 2013.

In the 2009‑10 Budget, $20.0 million over three years was provided from 2008‑09 to engage Local Employment Coordinators in priority regional areas. The coordinators manage and drive local responses to unemployment. Funding of $17.3 million is provided within this measure to continue the engagement of the coordinators and support staff.

This measure also includes $20.0 million for a flexible funding pool to be utilised by each of the Local Employment Coordinators to help kick‑start, implement and support local initiatives which aim to create or maximise employment, education and training opportunities in their priority regional areas.

A further $7.9 million will be provided to conduct approximately 40 Jobs and Skills Expos across the priority regional areas to build upon the work of Employment Coordinators.

Building Australia's Future Workforce — Productivity Education and Training Fund — establishment

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 10.0 10.0

The Government will provide $20.1 million over two years to establish the Productivity Education and Training Fund to enhance employee and employer understanding of the benefits of productivity growth and to encourage a commitment to achieving productivity growth within the workforce.

The Fund will provide up to $10.0 million to employer organisations and up to $10.0 million to unions to enable them to provide tailored information and education resources to their membership.

Building Australia's Future Workforce — Productivity Places Program — redirection of funding

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑83.8 ‑255.7 ‑257.0 ‑257.4

The Government will redirect funding from the Commonwealth component (Commonwealth Own Purpose Expenditure) of the Productivity Places Program. This will provide savings of $853.9 million over four years to support other Government priorities including:

  • $360.0 million over two years to fund the increase in the Trade Apprentice Income Bonus, announced in the 2010‑11 Mid‑Year Economic and Fiscal Outlook and other Government priorities;
  • $94.5 million over three years to support the New Enterprise Incentive Scheme, which offers accredited small business training, business advice and mentoring, as well as ongoing income support for up to 52 weeks; and
  • $399.4 million over four years towards the Building Australia's Future Workforce package.

The Productivity Places Program was announced as part of the Government's Skilling Australia for the Future initiative in 2007. The five year program commenced 1 April 2008, with state and territory delivery of the program from 1 July 2009 through a National Partnership (NP), which is due to expire on 30 June 2012.

This measure redirects the Productivity Places Program funding to better achieve skills objectives.

See also the related expense measure titled Employment Services Arrangements Package — New Enterprise Incentive Scheme — continuation and extension to Disability Employment Services job seekers.

Building Australia's Future Workforce — Quality Skills Incentive — redirection of funding

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑43.2 ‑43.2 ‑43.2 ‑43.2

The Government will cease funding for the Quality Skills Incentive to support other measures within the Building Australia's Future Workforce package.

The Quality Skills Incentive was available to reward the 100 largest Registered Training Organisations for the achievement of agreed performance benchmarks. Other alternative approaches will support improvements to the quality of the vocational education and training system.

This measure will provide savings of $172.8 million over four years.

Building Australia's Future Workforce — regional education, skills and jobs plans

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 6.3 6.4 6.4

The Government will provide $19.1 million over three years to engage 34 Regional Strategists to develop regional education, skills and jobs plans aimed at improving access to education, training and employment in 34 non‑metropolitan Regional Development Australia areas.

The Regional Strategists will develop, implement and review the plans over a three year period in consultation with community stakeholders and Regional Development Australia committees. The plans will contribute to improving regional awareness of Government programs, facilitating greater engagement between the Government and regional communities, and better targeting Government program expenditure to specific regional needs.

This measure delivers on the Government's agreement with the Member for Lyne, and the Member for New England.

Building Australia's Future Workforce — services to assist single parents enter the workforce

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 1.4 0.7 0.8 0.8
Department of Families, Housing, Community Services and Indigenous Affairs 1.4 5.3 6.1 6.2
Department of Human Services
Total 2.9 6.0 6.9 7.0

The Government will provide $22.7 million over four years to assist single parents to improve their skills and plan for a transition to the workforce when they move off Parenting Payment Single.

The funding will provide professional career advisory services for single parents provided through employment service providers. It will also provide support for parents and their children through Communities for Children services, including activities to develop personal skills, confidence and parenting capacity; improve educational and health outcomes for children; and facilitate entry or return to the workplace.

The enhanced services will be available from 1 January 2012.

Building Australia's Future Workforce — streamlining services for jobseekers

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Human Services 8.7 7.9 6.3 6.2
Department of Education, Employment and Workplace Relations 1.2 ‑0.1 ‑0.1 ‑0.1
Total 9.9 7.8 6.2 6.1
Related capital ($m)
Department of Human Services 3.2
Department of Education, Employment and Workplace Relations 2.1
Total 5.4

The Government will provide $35.3 million over four years (including capital of $5.4 million in 2011‑12) to streamline services for jobseekers, as part of its response to the Report of the Independent Review Impacts of the new Job Seeker Compliance Framework.

From 1 July 2012, the penalty rates for failure to attend an interview with an employment service provider and failure to attend an activity or job interview will be aligned to one‑tenth of a job seeker's fortnightly income support payments.

This measure also includes funding to increase the involvement of employment service providers in the conduct of Comprehensive Compliance Assessments (CCAs), which involve an interview conducted by Centrelink with a job seeker who has been persistently non‑compliant. From 1 July 2012, a three year pilot will be implemented whereby Centrelink will contact the job seeker's employment services provider to discuss the likely outcome of the CCA to give the provider an opportunity to provide relevant information before a final decision is made. The pilot will also provide for CCAs to be conducted face‑to‑face, where practical, for vulnerable job seekers, rather than by telephone.

In addition, funding will be provided to enhance and improve the exchange of information between Centrelink and the Department of Education, Employment and Workplace Relations' information technology systems. This will improve the capacity of employment services providers and Centrelink staff to view and use appropriate material from each other.

Building Australia's Future Workforce — training places for single and teenage parents

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of the Treasury 6.7 20.0 26.7 26.7
Department of Education, Employment and Workplace Relations
Total 6.7 20.0 26.7 26.7

The Government will provide $80.0 million over four years to provide additional training places for single and teenage parents in receipt of income support to assist them gain skills to return to work.

The funding will provide up to 31,000 training places, at the Certificate II level or above, for single and teenage parents on income support.

Funding for this measure will be provided to States and Territories under a new National Partnership covering the period 1 January 2012 and 30 June 2015. The distribution of funding will be subject to negotiation with the State and Territory governments.

Building Australia's Future Workforce — transitional activities for early school leavers

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Human Services 0.7 0.1 0.1 0.1
Department of Education, Employment and Workplace Relations 0.2 35.9 17.7 12.5
Total 0.8 36.0 17.8 12.6
Related capital ($m)
Department of Education, Employment and Workplace Relations 0.3
Department of Human Services
Total 0.3

The Government will provide $67.6 million over four years (including capital funding of $0.3 million in 2011‑12) to deliver transitional activities for early school leavers aged 15‑21 years of age who do not have a year 12 certificate or equivalent qualification.

Early School Leavers Transition Support (ETS) will commence from 1 July 2012 and be delivered through Job Services Australia. ETS will assist early school leavers in developing foundation skills to transition into further study, training or employment.

This measure will credit an additional $500 per early school leaver to the Employment Pathway Fund that will assist the Job Services Australia service provider with the costs associated with delivering ETS activities.

The measure will also fund additional pathway and outcome payments to Job Services Australia service providers who assist early school leavers with low levels of literacy and numeracy to complete the first block of the Language, Literacy and Numeracy Program upon completion of ETS.

Building the Education Revolution — Implementation Taskforce Interim Report recommendations

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations

The Government will provide $11.6 million over four years to respond to the recommendations of the Building the Education Revolution (BER) Implementation Taskforce Interim Report released on 6 August 2010. The Government accepted and agreed to implement the recommendations of the report in full.

These costs include establishing a panel of construction, project management and quantity surveying individuals and establishing a unit within the Department of Education, Employment and Workplace Relations that will also be responsible for the successful delivery of other recommendations concerning the BER program.

Up to $3.0 million of the funding will be utilised to fund, through an open tender process, long‑term housing of the BER Cost Analysis Model (BER‑CAM) database at a university. The BER‑CAM database holds information related to the costs of school infrastructure.

The cost of this measure will be met from within the existing resourcing of the Department of Education, Employment and Workplace Relations. This measure delivers on the Government's election commitment.

Child Care Assistance — awareness campaign

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations

The Government will provide $8.3 million in 2010‑11 for an awareness campaign to ensure that eligible families are aware of current child care assistance available, such as the Child Care Rebate (CCR) and Child Care Benefit. Information will also be provided to families on the availability of fortnightly payment of the CCR from 1 July 2011.

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

Child Care Rebate — additional payment option

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Centrelink 10.7 2.3 2.1 4.5 5.2
Department of Education, Employment and Workplace Relations
Total 10.7 2.3 2.1 4.5 5.2
Related capital ($m)
Centrelink 1.7 1.0 0.8

The Government will provide families with the additional option of receiving Child Care Rebate (CCR) payments directly to their bank account on a fortnightly basis from 1 July 2011 at a cost of $30.8 million over five years. This will allow families to choose from a greater range of CCR payment options.

This measure builds on the Mid‑Year Economic and Fiscal Outlook 2010‑11 measure Child Care Rebate — fortnightly payment, which allowed families to receive CCR payments fortnightly as a fee reduction via their child care service.

Funding of $2.5 million for the Department of Education, Employment and Workplace Relations to administer the arrangements will be met from within its existing resources.

Child Care Reform Agenda Workforce — improved access to Recognition of Prior Learning

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 1.8 1.8 1.8 1.8

The Government will provide $7.2 million over four years to assist existing early childhood education and care workers in rural and remote areas access recognition of prior learning assessments. This will assist early childhood workers attain Certificate III, Diplomas and Advanced Diplomas in early childhood education.

Each year, up to 2,000 existing early childhood education and care workers will be eligible for a rebate of their costs associated with completing the assessment process, such as travel expenses or IT costs. Eligible recipients will receive a one‑off rebate of 75 per cent of their expenses up to a maximum rebate of $1,125 where their expenses are $1,500 or more.

This measure will support the Government's early childhood reform agenda, including the introduction of new staff qualification requirements set out in the National Partnership on the National Quality Agenda for Early Childhood Education and Care.

Child Care Reform Agenda Workforce — improved Recognition of Prior Learning Assessment

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 1.0 0.6 0.5

The Government will provide $2.0 million over three years to up‑skill 600 already qualified Recognition of Prior Learning (RPL) assessors to make RPL delivery in Certificate III, Diplomas and Advanced Diplomas in early childhood education more efficient and effective.

This measure aims to build the quality of the early childhood education and care workforce by developing a streamlined training course for assessors and tools to improve the effectiveness of RPL assessments.

This measure will support the Government's early childhood reform agenda, including the introduction of new staff qualification requirements set out in the National Partnership on the National Quality Agenda for Early Childhood Education and Care.

Child Care — early well‑being competencies

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations

The Government will provide $0.5 million in 2011‑12 to review early childhood education and care (ECEC) courses to determine the extent to which mental health and wellbeing competencies are included in early childhood qualifications and develop options for incorporating these competencies where they do not exist.

Research suggests that if children with mental health difficulties are identified early and their condition managed, they will be less likely to have poor mental health outcomes as adults. ECEC professionals are well placed to recognise emerging signs of mental health issues and provide support. This initiative will therefore determine the capacity of existing ECEC training to assist them in identifying early warning signs and refer families to appropriate services.

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

Education Investment Fund — regional priorities round

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 50.0 100.0 125.0 125.0

The Government will provide $500.0 million over five years (including $100.0 million in 2015‑16) to fund a regional priority round from the Education Investment Fund (EIF). This will support regional higher education and vocational institutions to improve their infrastructure, and help improve the quality of training and education regional students receive. Higher educational and vocational institutions will apply in a competitive round, with all applications to be assessed by the EIF Advisory Board.

Established on 1 January 2009 under the Nation‑building Funds Act 2008, the EIF provides funding for high priority capital development projects in the higher education and vocational education and training sectors.

This measure delivers on the Government's agreement with the Member for Lyne and the Member for New England.

Education Services for Overseas Students — further response to the Baird Review

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 8.2 8.3 8.3 8.4
Related expense ($m)
Department of Education, Employment and Workplace Relations 7.5 7.6 7.5 7.6
Related capital ($m)
Department of Education, Employment and Workplace Relations 3.3

The Government will provide $36.4 million over four years (including capital funding of $3.3 million in 2011‑12) to establish fund information technology systems for an enhanced tuition protection scheme and to support increased compliance activity as part of the response to the final report of the review of the Education Services for Overseas Students Act 2000 conducted by the Hon Bruce Baird AM.

The annual registration charge will provide $30.3 million over four years, including $4.8 million over four years to support an expanded role for the Commonwealth Ombudsman.

Employment Services Arrangements — Disability Employment Services in non‑remote areas — continuation

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 4.6 7.9 2.5 1.7
Related capital ($m)
Department of Education, Employment and Workplace Relations 1.6

The Government will provide $18.3 million over four years to continue to deliver employment services to job seekers with a disability, with streamlined administration for Disability Employment Services (DES) providers.

Under this measure current Employment Support Services contracts in non‑remote areas will be extended until 1 March 2013 to enable sufficient time for a comprehensive assessment of individual provider performance. High performing providers of Employment Support Services will then be offered a contract extension until 30 June 2015 with any remaining business put to open tender. Participants with providers that do not secure a contract extension will be provided with support to help them transition, with minimal disruption, to a new provider.

This measure includes funding for procurement arrangements associated with the contract extensions, transition assistance, and $2.7 million to continue to pilot the DES Moderate Intellectual Disability Loading and Eligible School Leavers programs until 1 March 2013. These pilots were previously announced in the 2010‑11 Budget and commenced on 1 July 2010. The pilots will continue to examine whether targeted additional funding for DES providers can improve employment outcomes for highly disadvantaged job seekers with a disability and provide smoother paths of access for young people with a disability from school to employment. The measure also supports ongoing evaluation of the DES program.

Employment Services Arrangements — efficiencies

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Human Services 1.1 ‑15.0 ‑15.2 ‑15.3
Department of Education, Employment and Workplace Relations .. ‑30.0 ‑44.0 ‑49.3
Total 1.1 ‑45.1 ‑59.2 ‑64.7
Related capital ($m)
Department of Education, Employment and Workplace Relations 0.1

The Government has identified efficiencies in employment services arrangements that will deliver net savings of $167.8 million over four years.

From 1 July 2012, job seekers within Job Services Australia will no longer need to have a service review to assess their eligibility for the Work Experience Phase of the program. In addition, the length of time a job‑ready job seeker will be required to participate in Intensive Activities will be adjusted to reflect the reduced level of support required for this group of job seekers. Also, the mandatory requirement for Disability Employment Services participants to have an Ongoing Support Assessment (OSA) every 12 months will be removed if there has been no change in their previous two assessments.

Savings from this measure will be redirected to support other Government priorities.

Employment Services Arrangements — Employer Broker Panel — cessation

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑2.0 ‑2.0 ‑2.0

The Government will not proceed with funding the Job Services Australia Employer Broker Panel.

The Employer Broker Panel was implemented in 2009‑10 as a competitive grants program to match job seekers with employers. The panel overlaps with services currently provided through Job Services Australia, which assists job seekers find suitable work with an employer.

This measure will provide savings of $6.0 million over three years from 2012‑13.

Savings from this measure will be redirected to support other Government priorities.

Employment Services Arrangements — Innovation Fund — cessation

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑13.7 ‑13.7 ‑13.7

The Government will not proceed with funding the Job Services Australia Innovation Fund.

The Innovation Fund was implemented in 2009‑10 as a competitive grants program to fund projects designed to overcome barriers to employment, but experience has been that the fund overlaps with services provided through Job Services Australia.

This measure will provide savings of $41.0 million over three years. Savings from this measure will be redirected to support other Government priorities.

Employment Services Arrangements — Job Services Australia and Disability Employment Services in remote areas — contract extension and new initiatives

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 0.5 0.5
Related capital ($m)
Department of Education, Employment and Workplace Relations ..

The Government will extend Job Services Australia (JSA) and Disability Employment Services (DES) contracts for employment service providers in remote areas for 12 months to 30 June 2013. This will allow a consultation process to be undertaken with remote communities and other stakeholders about the most appropriate employment and community development service delivery model.

In the interim, the Government will also provide an additional $1.0 million over two years to create two additional Pathway Outcomes payments for highly disadvantaged job seekers in remote areas.

This includes:

  • a 13‑week Pathway Outcome payment of $945 for DES and between $550 and $1,100 for JSA where the provider can demonstrate that a job seeker has been in paid employment for a combined total of 13 weeks within 26 weeks from the start of employment; and
  • a 26‑week Pathway Outcome payment of $1,450 for DES and between $550 and $1,100 for JSA where a provider can demonstrate that a job seeker has been in paid employment for a combined total of 26 weeks within 52 weeks from the start of employment.

Employment Services Arrangements — Job Services Australia in non‑remote areas — continuation and new initiatives

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 3.6 2.7 1.6 0.6
Related capital ($m)
Department of Education, Employment and Workplace Relations 2.3

The Government will provide $10.8 million over four years to continue to deliver employment services under Job Services Australia (JSA), with streamlined administration for JSA providers.

Under this measure, a three year contract extension until 30 June 2015 will be offered to high performing providers, with any remaining business either reallocated to high performing providers or put to open tender. Participants with a provider that does not secure a contract extension will be provided with support to help them transition, with minimal disruption, to a new provider.

To improve the employment outcomes for Indigenous job seekers, funding of $6.1 million will be provided to:

  • conduct a three year pilot program commencing from 1 July 2012 that would give access to mentoring support for Indigenous job seekers for up to 26 weeks;
  • improve the service guarantee of employment services providers to provide culturally appropriate services for Indigenous job seekers; and
  • improve the cultural capability of employment service providers.

Employment Services Arrangements — New Enterprise Incentive Scheme — continuation and extension to Disability Employment Services job seekers

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Human Services 1.3 0.1 0.1 0.1
Department of Education, Employment and Workplace Relations 0.4 31.5 31.5 31.5
Total 1.6 31.6 31.6 31.6
Related capital ($m)
Department of Education, Employment and Workplace Relations 0.7

The Government will provide $97.1 million over four years to continue to provide the New Enterprise Incentive Scheme (NEIS) to 6,300 job seekers each year and to extend the eligibility to help job seekers with a disability to establish small businesses.

The NEIS supports job seekers to create their own job opportunities by starting a small business. It provides eligible participants with:

  • accredited small business training (Certificate III in Micro‑Business Operations or a Certificate IV in Small Business Management);
  • 12 months of a NEIS allowance equivalent to Newstart Allowance; and
  • 12 months of business advice and mentoring support.

Ethical Clothing Australia — continued funding

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations

The Government will provide $4.0 million over four years to continue to support Ethical Clothing Australia to administer and promote its accreditation and labelling system and encourage participation in the National Retailers Ethical Clothing Code of Practice.

Ethical Clothing Australia is a joint union and industry initiative. This measure will assist the local textile, clothing and footwear industry to ensure that Australian workers in the industry receive fair wages and work under appropriate conditions through Ethical Clothing Australia's accreditation of brands' supply chains and verification of compliance with workplace relations laws.

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

Framework for Open Learning Program — redirection of funding

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑0.6 ‑0.6

The Government will redirect $1.2 million over two years in uncommitted funding from the Framework for Open Learning Program towards listing One Laptop Per Child as a Deductible Gift Recipient under the Income Tax Assessment Act 1997 for the period 27 May 2010 to 30 June 2012, announced by the then Prime Minister and then Assistant Treasurer on 27 May 2010.

Higher Education Contribution Scheme — reduction in discounts

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑29.4 ‑62.5 ‑66.6 ‑71.0
Related expense ($m)
Department of Education, Employment and Workplace Relations 0.2 4.3 18.4 41.0

The Government will, from 1 January 2012, reduce the following discounts applying to payments made under the Higher Education Contribution Scheme (HECS):

  • the discount available to students electing to pay their student contribution up‑front will be reduced from 20 to 10 per cent; and
  • the bonus on voluntary payments to the Australian Taxation Office of $500 or more will be reduced from 10 per cent to 5 per cent.

Under HECS, students electing to pay their student contribution up‑front will continue to receive a 10 per cent discount on the payment. Students choosing not to pay up‑front can take out a concessional loan to pay their student contribution under the Higher Education Loan Program (HELP).

Under HELP, students accrue an outstanding debt which is repaid gradually when their assessable income exceeds a minimum repayment threshold. Students can also elect to make additional voluntary payments through the Australian Taxation Office to further reduce their outstanding HELP debt. Payments of $500 or more will now attract a 5 per cent bonus so that a payment of $500 would reduce an individual's outstanding HELP debt by $525.

The measure will provide savings of $479.5 million over four years in terms of underlying cash and savings of $293.4 million in terms of the fiscal balance.

Savings from this measure will be redirected to support other Government priorities.

Higher Education Performance Funding

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑47.5 ‑47.5

The Government will delay part of the reward funding to higher education institutions. This will provide savings of $95.0 million over two years.

Payments for the achievement of student experience and quality learning outcomes will be delayed until 2013 to allow suitable instruments for measuring performance against these criteria to be developed.

Savings from this measure will be redirected to support other Government priorities.

Higher Education Regional Loading — increased funding

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 15.0 30.5 31.6 32.8

The Government will provide $109.9 million over four years to increase and better target the funding available to universities with regional campuses.

The regional loading provides additional funding to universities through the Commonwealth Grant Scheme in recognition of the higher costs of delivering education in regional areas. Under this measure, funding will be targeted more effectively to regional campuses facing additional costs as a result of their remoteness. The funding formula will be improved by using the Australian Standard Geographical Classification to determine the remoteness of a campus and by examining current enrolment patterns across regional campuses.

This measure delivers on the Government's agreement with the Member for Lyne and the Member for New England.

Indigenous Education Targeted Assistance — extension

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations

The Government will provide $171.3 million over two years to 2013‑14 to extend Indigenous education support programs funded under the Indigenous Education (Targeted Assistance) Act 2000 (IETA Act) until the end of 2013.

The IETA Act provides funding for programs to improve Indigenous literacy and numeracy, school attendance and providing education support.

This measure will ensure support for Aboriginal and Torres Strait Islander students while the Review of Funding for Schooling is being conducted.

The review has been directed to provide recommendations that include options for supporting Indigenous students.

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

Model Work Health and Safety laws — implementation

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Comcare 1.3 6.2
Related capital ($m)
Comcare 7.1

The Government will provide $14.7 million over two years (including $7.1 million in capital funding) to implement nationally harmonised model work health and safety laws within the Commonwealth's jurisdiction. This will enable the Commonwealth to meet its commitments under the Council of Australian Governments' Inter‑Governmental Agreement for Regulatory and Operational Reform on Occupational Health and Safety, which requires all jurisdictions to enact the model laws by the end of 2011.

The funding will support:

  • the development of Commonwealth legislation, regulations and a code of practice consistent with the model laws;
  • education activities;
  • service delivery, including harmonised guidance material and reporting; and
  • development of a regulatory management system.

National Mental Health Reform — Australian Early Development Index — improved ongoing implementation

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations

The Government will provide $29.7 million over five years (including $6.5 million in 2015‑16) to improve the Australian Early Development Index (AEDI) and ensure the ongoing collection of data every three years.

The AEDI collects information on all children in the first year of school across five domains: physical health and wellbeing; social competence, emotional maturity; language and cognitive skills; and communication skills and general knowledge. This provides population level information on how children are faring before they start school. The dataset includes nationally comparable information on young children's mental health and social and emotional development for the benefit of families, communities and the Government.

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

This measure is part of the Government's National Mental Health Reform package.

National Mental Health Reform — increased employment participation for people with mental illness

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 1.0 0.3 0.3 0.3
Related capital ($m)
Department of Education, Employment and Workplace Relations ..

The Government will provide $2.4 million over five years (including $0.3 million in 2015‑16) to support increased economic and social participation by people with mental illness.

This measure will provide assistance to employers to employ people with a mental illness and increase the capacity of employment services providers and the Department of Human Services by:

  • providing training to employment services providers and Department of Human Services staff to enable them to better identify and assist people with mental illness to gain employment, and better connect them with the appropriate services, including community mental health services and Medicare Locals;
  • expanding the JobAccess telephone service to include mental health professionals; and
  • reviewing the Supported Wage System (SWS) to analyse the effectiveness and appropriateness of applying the SWS to people with mental illness.

This measure is part of the Government's National Mental Health Reform package.

National Mental Health Reform — Social Engagement and Emotional Development survey for Children aged 8 to14 years

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations

The Government will provide $1.5 million over five years to develop a national Social Engagement and Emotional Development survey for children aged 8 to 14 years. The survey will focus on the social and emotional development of young people and the impact this has on their resilience and wellbeing.

Up to 100 children in at least three states and territories would participate in the developmental stage of the survey. The survey will then be trialled with a representative sample of 5,500 school‑going children across Australia in 2012.

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

This measure is part of the Government's National Mental Health Reform package.

National Workers' Memorial — establishment

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations

The Government will provide $3.6 million over four years for the establishment of a National Workers' Memorial and an interactive website. The National Workers' Memorial will honour Australian workers who have lost their lives due to work related accidents, incidents or disease, and serve as a reminder of the importance of workplace safety.

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

Natural Disaster Recovery and Rebuilding — assistance to business affected by the Queensland Floods

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 14.8 17.3 ‑5.7 ‑5.8 ‑5.9
Attorney‑General's Department 6.9 6.9
Department of the Treasury 6.3 6.3
Department of Immigration and Citizenship
Department of Resources, Energy and Tourism 1.0
Tourism Australia 4.0
Total 32.9 30.4 ‑5.7 ‑5.8 ‑5.9
Related expense ($m)
Attorney‑General's Department 2.2 4.6 4.3 3.8

The Government will provide $61.9 million over five years (including $37.0 million in 2010‑11) to assist businesses adversely affected by severe flooding in Queensland in late 2010 and early 2011.

The Government will contribute $30.8 million to the cost of the 2011 Queensland Natural Disasters Jobs and Skills package being administered by the Queensland Government. The costs will be met from within the existing resources of the Department of Education, Employment and Workplace Relations including a redirection of $17.4 million from the Group Training in the Trades prevocational Program and $4.1 million from the Innovation Fund.

The Government will also provide $14.6 million to double the capacity of the Connecting People with Jobs Relocation Assistance Pilot program from 2,000 to up to 4,000 places over two years. The additional places will assist eligible unemployed Australians to voluntarily relocate to Queensland to take‑up employment opportunities in flood affected areas.

The Government will provide concessional loans of up to $650,000 (including a grant component of up to $50,000) to eligible businesses, primary producers and not‑for‑profit organisations which suffered extreme damage. The cost to the Government's underlying cash balance of providing the concessional loans, including grants and the net cost of the interest concessions, is $19.6 million over five years.

Employment in the region will also be supported by the Government through fast‑tracking the processing of employer‑sponsored temporary visas (457 visas) for employers undertaking flood reconstruction work in affected areas.

The Government will also contribute $5.0 million to support Queensland's tourism industry.

This measure is one of a range of actions taken by the Government to support individuals, businesses and local communities affected by natural disasters in 2010‑11 to recover and rebuild. Further information can be found in the press releases of 27 and 28 January 2011 issued by the Prime Minister and the Deputy Prime Minister and Treasurer, respectively.

Natural Disaster Recovery and Rebuilding — assistance to business affected by Tropical Cyclone Yasi

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of the Treasury 15.6 5.6
Attorney‑General's Department 4.5 4.5
Department of Human Services
Centrelink 7.0
Department of Education, Employment and Workplace Relations
Total 27.1 10.1
Related expense ($m)
Attorney‑General's Department 1.5 3.0 2.8 2.5

The Government will provide $89.5 million over five years to assist businesses adversely affected by Tropical Cyclone Yasi.

Wage assistance for employers, paid at a rate equivalent to Newstart Allowance, will be made available to employers including primary producers for up to 26 weeks, to assist with the long term viability of businesses in the local communities. Funding of $62.0 million for the wage assistance will be met from within the existing resourcing of the Department of Education, Employment and Workplace Relations.

The Government will provide concessional loans of up to $650,000 (including a grant component of up to $50,000) to eligible businesses, primary producers and not‑for‑profit organisations which suffered extreme damage. The cost to the Government's underlying cash balance of providing the concessional loans, including grants and the net cost of the interest concessions, is $15.8 million over five years.

The Government has also provided a contribution of $10.0 million to the Far North Queensland Rural Reconstruction package to assist regional communities and businesses with recovery activities such as farm clean‑ups and social support.

The measure includes $7.0 million for Centrelink to deliver relief payments to those in affected areas.

This measure is one of a range of actions taken by the Government to support individuals, businesses and local communities affected by natural disasters in 2010‑11 to recover and rebuild.

Natural Disaster Recovery and Rebuilding — Australian Learning and Teaching Council — redirect funding

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑4.7 ‑10.1 ‑11.0 ‑11.9

The Government will discontinue funding for the Australian Learning and Teaching Council (ALTC) from 1 January 2012. The ALTC was established in 2004 to administer a range of grants, awards and other initiatives to promote quality in learning and in higher education. This will provide savings of $87.7 million over four years.

Part of these savings will be redirected to fund $50.0 million in grants and awards to promote excellence in university teaching, to be administered by the Department of Education, Employment and Workplace Relations.

The remaining $37.7 million savings from this measure will be used to meet the costs of supporting individuals, businesses and local communities affected by natural disasters in 2010‑11 to recover and rebuild.

Natural Disaster Recovery and Rebuilding — Capital Development Pool — cessation

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑55.0 ‑78.0 ‑81.0 ‑84.0

The Government will cease funding the Capital Development Pool from 1 January 2012. This will provide savings of $298.0 million over four years.

The Capital Development Pool was established in 1994 to provide funding to higher education providers for capital projects. The Government will continue to support capital development in higher education through the Education Investment Fund, including a $500 million Regional Priorities Round, as well as through $200 million in Structural Adjustment Funding to assist universities to transition to a demand driven higher education system from 2012.

No further funding will be awarded from the Capital Development Pool from 1 January 2012. However, funding committed to projects for the 2011 calendar year will still be provided.

Savings from this measure will be used to meet the costs of supporting individuals, businesses and local communities affected by natural disasters in 2010‑11 to recover and rebuild.

Schools — Australian Baccalaureate — establishment

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 2.5 4.8

The Government will provide $7.3 million over two years to develop a new voluntary recognised senior school qualification, the Australian Baccalaureate.

The Australian Baccalaureate is intended to complement existing senior secondary school qualifications. The Australian Curriculum, Assessment and Reporting Authority (ACARA) will lead the development of the qualification, which will follow the introduction of phase one of the national curriculum for senior secondary school students.

This measure delivers on the Government's election commitment.

Schools — Digital Education Revolution — redirection

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑28.1 ‑28.1 ‑28.1 ‑48.1

The Government will redirect $132.5 million over four years from the Digital Education Revolution (DER) project pool.

Since the announcement of the DER, the Australian Government has made significant investments in the integration of information and communication technology into teaching and learning. $20.0 million per annum will continue to be available in the DER project pool until the end of 2013‑14 to support:

  • the Digital Strategy for Teachers and School Leaders;
  • the establishment of a Digital Education Advisory Group; and
  • national initiatives to support the aims of the DER, such as the National Digital Learning Resources Framework.

This measure does not impact on the Government's support for the National Secondary Schools Student Computer Fund, which is on track to support schools in meeting a one‑to‑one ratio of computers to students in Year 9 and above by 31 December 2011.

Savings from this measure will be redirected to support other Government priorities.

Schools — national rewards for great teachers

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 50.0 125.0 250.0

The Government will provide $425.0 million over four years (and a total of $1.3 billion over eight years) to facilitate the development of a nationally consistent performance management system for teachers and to reward top‑performing teachers through bonus payments.

The Australian Institute of Teaching and School Leadership will lead the development of the Australian Teacher Performance Management Principles and Procedures. In 2013, all teachers will begin having their performance assessed under the new principles. From 2014, around the top 10 per cent of all teachers in each state and territory will receive a bonus payment of up to 10 per cent of their salary, based on performance in the previous year.

Funding of $125.0 million will be available each semester, with the first round commencing in semester one of 2014.

$50.0 million will also be made available in 2011‑12 to assist education authorities transition to the new performance management system

This measure delivers on the Government's election commitment.

Schools — National School Chaplaincy program — extension and expansion

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 74.0 74.0 74.0

The Government will provide $222.0 million over three years to extend the National School Chaplaincy program for all participating schools. This funding will also enable up to 1,000 additional schools to access the program until December 2014.

The National School Chaplaincy program supports school communities to access the services of a school chaplain or secular pastoral care worker, to support student well being. It provides grants of up to $20,000 a year to both government and non‑government eligible schools to establish new, or enhance existing, chaplaincy services.

The expansion of the program will be targeted to disadvantaged, regional and remote communities.

This measure delivers on the Government's election commitment.

Schools — non‑government school funding — extension

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations
Related capital ($m)
Department of Education, Employment and Workplace Relations

The Government will provide $8.7 billion over three years to 2014‑15 (including $301.6 million in capital funding) to extend the existing funding arrangements for non‑government schools, including indexation arrangements, until the end of 2013 for recurrent funding and until the end of 2014 for capital funding. This extension will provide schools with funding certainty and allow them to form forward plans while the Government undertakes a review to advise on the future funding arrangements for schools.

The review has been directed to provide recommendations for a funding system beyond 2013 that would be transparent, fair, financially sustainable and effective in promoting excellent educational outcomes for all Australian students. The review is expected to provide its report to the Government by the end of 2011.

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

This measure delivers on the Government's election commitment.

Schools — Schools Support Program — reduction in funding

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑2.5 ‑2.5 ‑2.5 ‑2.5

The Government will reduce the funding for the Schools Support Program to provide savings of $10.0 million over four years from 2010‑11. Funding of $1.7 billion will remain in this program over the next four years.

Savings from this measure will be redirected to support other Government priorities.

Schools — Support for Improving Learning Experiences and Educational Outcomes for School Students with Disability

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of the Treasury 61.2 61.4 30.7
Department of Education, Employment and Workplace Relations 18.8 18.6 9.3
Total 80.0 80.0 40.0

The Government will provide $200.0 million over the three years to December 2013 to provide additional assistance to teachers and schools to support students with disability and improve their learning outcomes.

Funding will be provided through a National Partnership with states and territories, and through funding agreements with non‑government schools. Initiatives supported under the measure may include: additional skills development and support for teachers to meet students' needs, and further assistance to schools to create extended service schools that offer co‑ordinated support for students and connect them with health, welfare, transport and other services.

Initiatives will be developed by education authorities in consultation with schools, parents and communities, and agreed with the Australian Government. This initiative will commence from 1 January 2012.

This measure will also provide an opportunity to identify the strategies which most improve the learning experiences of students with disability.

Schools — Teach Next

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations 6.4 5.3 4.5 2.0

The Government will provide $18.1 million over four years to establish an employment‑based training program that offers a new pathway into teaching careers for professionals with specialist qualifications or relevant work experience. The program will commence from 1 January 2012 and aims to address areas of teacher shortage in specialised subject areas such as mathematics and science. This will also help create a teaching workforce with greater diversity.

Up to 450 participants will undertake intensive initial training and then complete their formal qualifications over two years through a combination of different learning methods, including direct placements in schools. Participants will be eligible for financial assistance while studying. The Government will contribute up to 50 per cent of course fees to a maximum contribution of $10,000 and up to $5,000 in allowances to assist with costs associated with study. The Government will also provide $2.0 million to universities to develop and deliver a school‑based teacher education course.

This measure delivers on the Government's election commitment.

Schools — Trade Training Centres in Schools Program — revised rollout

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑6.6 ‑17.9 ‑33.8 ‑44.5

The Government will revise the number of projects to be funded from the Trade Training Centres in Schools Program between 2011‑12 and 2014‑15. This will provide savings of $102.8 million over four years. This measure will impact both government and non‑government schools.

The projects that would otherwise have been funded in the period will be delayed until 2015‑16 and 2016‑17. This will not affect the overall number of projects over the life of the program or recently announced Round 3 projects.

The Trade Training Centres in Schools Program aims to help address national skills shortages in traditional trades and emerging industries by improving trade training programs in secondary schools.

A total of $2.5 billion over 10 years will continue to be available to fund facilities to enhance vocational education opportunities for students in Years 9 to 12 in government and non‑government schools.

Savings from this measure will be redirected to support other Government priorities.

Vocational Education Broadband Network — redirection of funding

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑34.4 ‑24.4 ‑19.7

The Government will terminate future funding from the Vocational Education Broadband Network from 2010‑11. This will provide savings of $78.4 million over three years.

The Vocational Education Broadband Network was announced in April 2009 to deliver a high speed broadband network for the vocational education and training sector. The new National Broadband Network is expected to deliver the same functionality as the Vocational Education Broadband Network.

Savings from this measure will be redirected to support other Government priorities.

Work and Family Support for Small Businesses — cessation of grants

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Education, Employment and Workplace Relations ‑4.0

The Government will not proceed with the third round of grant funding under the Fresh Ideas for Work and Family Grants program. This program supports small businesses to implement family friendly working arrangements by providing grants of up to $15,000.

This measure will provide savings of $4.0 million in 2010‑11. Savings from this measure will be redirected to support other Government priorities.

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.