Australian Government, 2012‑13 Budget
Budget

Part 2: Expense Measures (Continued)

Industry, Innovation, Science, Research and Tertiary Education

Apprentice to business owner — business skills and mentoring program

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - 3.0 5.5 5.5 5.5

The Government will provide $19.4 million over four years for business skills training and mentoring support for individuals who are seeking to establish a business within two years of completing a trade‑related apprenticeship.

Grants of up to $5,000 will be available for 500 people in 2012‑13 and then 1,000 people each year from 2013‑14.

Australian Apprenticeship Ambassadors

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - - - - -

The Government will provide $0.2 million over four years from 2011‑12 to establish the Australian Apprenticeship Ambassadors program. The program will seek the support of a number of high‑profile Australians and Australian Training Award recipients to promote the benefits of Australian Apprenticeships as a valued career choice.

The cost of this measure will be met from within the resourcing of the Department of Industry, Innovation, Science, Research and Tertiary Education.

This measure forms part of the Government's response to the Apprenticeships for the 21st Century Expert Panel Report 'A Shared Responsibility: Apprenticeships for the 21st Century'.

Further information can be found in the press release of 6 December 2011 issued by the Minister for Tertiary Education, Skills, Science and Research.

Australian Apprenticeships Incentives Program — better targeting

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - -59.5 -99.8 -97.8 -96.6

The Government will discontinue the $1,500 standard employer commencement incentive payment and increase the standard completion incentive by $500 to $3,000 for existing worker apprentices in non‑National Skills Needs List (NSNL) occupations. Commonwealth incentive payments paid to employers of existing workers undertaking an apprenticeship in NSNL occupations and employers of new workers undertaking an apprenticeship in non‑NSNL occupations will remain unchanged.

The Government is targeting employer apprenticeship incentives more carefully and focusing on skills shortage occupations and higher completion rates. Employers incur a range of costs in hiring new staff, and therefore it is appropriate that the incentive payment is lower for existing staff.

This measure will re‑target apprenticeship incentive payments to encourage higher completion rates for existing workers in non‑National Skills Needs List occupations.

This measure will provide savings of $353.6 million over four years from 2012‑13 that will be redirected to support other Government priorities.

See also the related savings measure titled Australian Apprenticeships Incentives Program — deferral of the standard employer commencement payment.

Australian Apprenticeships Incentives Program — deferral of the standard employer commencement payment

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - -12.1 -12.1 -11.8 -11.7

The Government will achieve savings of $47.8 million over four years from 2012‑13 by changing the payment arrangements for the standard apprenticeship commencement incentive. The incentive payment will be made six months after an apprentice commences employment rather than the current three months.

The standard commencement incentive currently provides employers of apprentices at or above the Certificate III level with $1,500 and employers of apprentices at the Certificate II level in nominated equity groups with $1,250.

By separating the payment of the commencement incentive from the end of the probationary employment period, the measure will encourage the establishment of longer‑term employment relationships.

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

See also the related savings measure titled Australian Apprenticeships Incentives Program — better targeting.

Australian Institute of Aboriginal and Torres Strait Islander Studies — digitisation of Indigenous cultural resources — continuation

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Australian Institute of Aboriginal and Torres Strait Islander Studies - 3.2 3.2 - -

The Government will provide $6.4 million over two years to continue the digitisation of a range of historical and cultural material held in non‑digital form by the Australian Institute of Aboriginal and Torres Strait Islander Studies. The digitisation of the Institute's collection of Indigenous film, video, recorded sound and pictorial material will help ensure these resources are preserved and accessible to future generations.

Australian Skills Centres of Excellence

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - 0.1 6.0 6.0 6.0

The Government will provide $18.1 million over four years for the establishment of three Australian Skills Centres of Excellence (ASCE) to support innovative production processes and teaching and learning methods in the Vocational Education and Training (VET) sector.

Each ASCE will receive $2.0 million per annum and be administered by a consortium led by a registered training organisation in partnership with industry, state and territory governments and other relevant stakeholders, which will be required to make a co‑contribution to the cost of establishing the centres.

See also the related savings measure titled National Workforce Development Fund — redirect funding.

Australian Skills Quality Authority (National Vocational Education and Training Regulator) — additional funding

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Australian Skills Quality Authority - 8.4 11.1 11.2 10.6
Australian Skills Quality Authority - 5.2 13.4 13.9 13.7
Australian Skills Quality Authority - 1.0 2.2 2.7 3.1

The Government will provide $50.3 million over four years to help ensure the Australian Skills Quality Authority (ASQA) is adequately resourced. Funding will be provided, in part, by implementing cost recovery arrangements from 1 January 2013, providing an additional $46.1 million in revenue over the forward estimates.

The additional funding includes:

  • $34.5 million over four years to enable ASQA to conduct compliance audits including cross jurisdictional audits;
  • $6.9 million over four years to undertake up to three strategic audits per year targeting specific industry sectors or qualifications. Aged care, the early childhood development workforce and VET in schools have been identified as immediate priorities; and
  • $9.0 million over four years for the redevelopment of ASQA's information and communication technology system.

This measure builds on the Government's investment in skills and VET programs of $18.6 billion over five years.

ASQA commenced operation on 1 July 2011 subsuming the functions of all state and territory VET regulators apart from Victoria and Western Australia.

Australian Small Business Commissioner — establishment

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - 1.1 2.0 1.8 3.5

The Government will provide $8.3 million over four years to establish an Australian Small Business Commissioner to provide advocacy and representation of small business interests and concerns to the Australian Government. Funding will also be provided for a national information and referral service to allow small business owners to access information and advice, and referral to external services such as dispute resolution.

This measure will also extend the existing Small Business Support Line by a further year to 2015‑16 to provide advice to small businesses on issues such as: obtaining finance; cash flow management; retail leasing; personal stress and hardship counselling; and promotion and marketing.

Further information can be found in the joint press release of 14 March 2012 issued by the Prime Minister and the Minister for Small Business.

Automotive New Markets Initiative

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - - - - -

The Government will provide $25.0 million over six years from 2012‑13 (including $0.3 million in 2016‑17 and $0.03 million in 2017‑18) to assist Australian firms in the automotive supply chain to expand their operations. The grant assistance, along with a contribution from the Victorian Government, will provide $35.0 million to help firms in the automotive supply chain move into export markets and supply their products to other industries. The Commonwealth funding includes:

  • $20.0 million over six years to provide merit‑based grants for up to 50 per cent of eligible costs associated with expansion activities that enhance a firm's capability and expand its customer base and/or product range;
  • $3.4 million over four years to engage third‑party organisations to work with automotive firms to identify and implement automotive‑specific business capability diagnostic and improvement projects;
  • $0.9 million over four years to engage an automotive envoy to work closely with industry to identify new international opportunities and links into the automotive global platform market; and
  • $0.7 million over four years to engage a supplier advocate to work domestically to create linkages between automotive firms and new customers and work with capability development service providers to identify capabilities in the automotive supply chain that are transferable to the supply of new markets.

The cost of this measure will be met from within the existing resourcing of the New Car Plan for a Greener Future package.

Further information can be found in the joint press release of 22 March 2012 issued by the Prime Minister and the Minister for Industry and Innovation.

Commonwealth Grant Scheme — Enabling Loading — increase

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - 3.7 10.4 13.5 14.0

The Government will provide $41.6 million over four years to increase the enabling loading on Commonwealth Grant Scheme (CGS) funding for universities.

The additional resources will increase the Commonwealth funding for enabling courses in 2013 from $1,833 to $2,500 per equivalent full‑time student. From 2014, the rate will increase to $3,068, indexed annually thereafter, restoring the rate to the equivalent of the average rate applying in 2010.

Enabling courses act as bridging or supplementary programs for students who would otherwise have difficulty meeting university entry requirements. The CGS enabling loading provides additional funding to universities to assist with the cost of providing places in enabling courses of study in lieu of annual student course contributions, which are not permitted for enabling courses under current legislation.

The increase in funding for enabling courses is consistent with the findings of the Higher Education Base Funding Review.

Commonwealth Supported Places and Higher Education Loan Program — change in eligibility for Australian citizens not residing in Australia

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - -1.5 -4.8 -8.6 -13.6
Department of Industry, Innovation, Science, Research and Tertiary Education - -0.1 -0.3 -0.9 -2.1

The Government will no longer provide access to Commonwealth supported places and the Higher Education Loan Program for Australian citizens enrolled at a domestic campus who undertake a significant proportion of their higher education course while not residing in Australia. This will provide savings of $25.1 million over four years that will be redirected to support other Government priorities.

The change in eligibility will apply to students studying at both the undergraduate and postgraduate levels who commence their course from 1 January 2013.

This measure will ensure that Government funding is targeted towards students who are more likely to remain in Australia and contribute to Australia's workforce and economy following graduation.

Community‑Based Service Development Program — cessation

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - -3.9 -3.9 -3.9 -3.9

The Government will cease funding for the Community‑Based Service Development Program. This will provide savings of $15.7 million over four years.

The Community‑Based Service Development Program provides funding to improve the language, literacy and numeracy skills of working age Australians. The Government is developing an over‑arching National Foundation Skills Strategy for Adults to bring a national focus to improving the foundation skills of working age Australians and to provide a framework for Australian, state and territory government action on foundation skills over the next ten years.

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

Economic Potential of Senior Australians — Investing in Experience — Skills Recognition and Training

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - - - - -

The Government will broaden the eligibility of the More Help for Mature Age Workers (MHMAW) program and make changes to the payment structure to help address current levels of unmet demand.

The current MHMAW program supports the recognition of qualifications for mature age workers (aged 50 years and above) at the Certificate III level or above who have trade relevant skills but no formal qualification. It does this by reimbursing employers up to $2,000 for a skills assessment and $2,000 for training costs. This measure expands the MHMAW program to include mature age workers from non‑trade occupations across all sectors of the economy, such as child care and business. Reimbursements to employers will also be restructured with employers eligible to claim $3,000 for the costs of the skills assessment and a further $1,000 upon completion of the gap training by the mature age worker.

To reflect these changes, the MHMAW program will be renamed the Investing in Experience — Skills Recognition and Training program. The cost of the measure will be met from within the existing resourcing of the MHMAW program.

This measure forms part of the Government's response to the recommendations of the Advisory Panel on the Economic Potential of Senior Australians.

Economic Potential of Senior Australians — Productive Ageing Through Community Education

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - 1.2 1.1 1.3 1.2

The Government will provide $4.8 million over four years to support adult education providers and community organisations to expand the delivery of educational and training courses tailored to the needs of senior Australians (aged 60 and above).

It is anticipated that grants ranging from $5,000 to $20,000 will be awarded annually, expanding educational opportunities for senior Australians with a focus on community engagement and skills development.

This measure forms part of the Government's response to the recommendations of the Advisory Panel on the Economic Potential of Senior Australians.

Ford Australia Environmental Innovation Grant

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - - - - -

The Government will provide $34.0 million in 2011‑12 to the Ford Motor Company of Australia Limited to assist with the design and engineering of the 2014 Falcon. The grant assistance, along with a funding contribution from the Victorian Government, will be part of a $103.5 million design and engineering project to reduce the carbon dioxide emissions of the 2014 Falcon and improve the safety of the Falcon and Territory vehicles. The funding will also secure the production of the Falcon at Broadmeadows in Melbourne to at least the end of 2016.

The cost of this measure will be met from within the existing resourcing of the New Car Plan for a Greener Future package.

Funding for this measure was included as a 'decision taken but not yet announced' in the Mid‑Year Economic and Fiscal Outlook 2011‑12.

Further information can be found in the joint press release of 10 January 2012 issued by the Prime Minister and the Minister for Manufacturing.

General Motors Holden — next generation vehicles — contribution

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - - - - -

The Government will provide $215.0 million over four years from 2013‑14 to General Motors Holden (Holden) to support capital investment and design and engineering of Holden's next generation vehicles. The grant assistance, along with contributions from the South Australian and Victorian Governments, will result in Holden injecting over $1 billion into car manufacturing in Australia, which will support jobs at Holden and the automotive supply chain companies. The funding is expected to secure Holden's production of vehicles in Australia until at least 2022.

The cost of this measure will be met from within the existing resourcing of the New Car Plan for a Greener Future package.

Further information can be found in the joint press release of 22 March 2012 issued by the Prime Minister and the Minister for Industry and Innovation.

Green Building Fund — redirection

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - -2.4 - - -

The Government will redirect uncommitted funding of $2.4 million in 2012‑13 from the Green Building Fund.

The Green Building Fund aims to reduce the impact of the built environment on Australia's carbon emissions by reducing energy consumption in the operation of existing commercial office buildings, hotels and shopping centres.

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

See related expense measure title Building energy efficiency — additional funding.

Higher Education — increased student contributions for mathematics, statistics and science units

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - -81.3 -129.5 -69.2 -20.9
Department of Industry, Innovation, Science, Research and Tertiary Education - - 1.2 4.7 8.1

The Government will establish a single annual student course contribution rate for higher education students who study mathematics, statistics and science units.

In the Mid‑Year Economic and Fiscal Outlook 2011‑12, the Government announced that it would increase the annual student course contribution for mathematics, statistics and science units from the National Priority rate (estimated at $4,696 per student in 2013) to the Band 2 rate (estimated at $8,361 in 2013) for all students commencing a higher education course from 1 January 2013, with continuing students paying the National Priority rate until 31 December 2015.

This measure will now ensure that the increase in the annual student course contribution to the Band 2 rate applies to all students, including students who commenced prior to 1 January 2013.

Students currently undertaking maths and science studies in the 2012 university year will continue to benefit from the priority rate for the remainder of the current university year. Additionally, this measure does not impact on the rate of liabilities accrued under the priority rate for studies undertaken in the 2009‑2012 university years.

The measure will enable the transitional loading paid to universities to compensate for the lower annual student contributions paid by mathematics, statistics and science students to be abolished from 1 January 2013.

This measure will provide savings of $314.9 million over four years, which will be redirected to support other Government priorities.

Improving support for disadvantaged students to succeed at university — Higher Education Participation and Partnerships Program — reform

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - -13.4 -7.9 -2.0 5.2

The Government will reduce the funding for the participation component of the Higher Education Participation and Partnerships Program (HEPPP) by $68.2 million over four years from 1 January 2013. As a result, the average annual funding rate per student will fall from $1,800 to $1,400 in 2012. The Government will also increase the funding available through the partnership component of the HEPPP by $50.0 million over four years.

The HEPPP is comprised of participation and partnership components. The participation component provides reward funding to universities based on their share of domestic students from low socio‑economic status (SES) backgrounds. The partnership component provides funding to universities to develop partnerships and outreach activities with various stakeholders that build the capacity of people from low SES backgrounds participating in higher education.

The additional partnership funding will enable more intensive support to be provided for disadvantaged students, including Indigenous students. The reduction to the participation component is consistent with the findings of the Higher Education Base Funding Review.

This measure will provide savings of $18.2 million over four years that will be redirected to support other Government priorities.

International Education and Training — redirection of funding

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - -4.0 -2.0 -2.0 -2.0

The Government will redirect $10.0 million over four years from the International Education and Training Program to support other Government priorities.

The International Education and Training Program provides approximately $55 million per annum for the provision of scholarships, fellowships and exchange opportunities for international and Australian students.

Manufacturing Technology Innovation Centre — establishment

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - 3.9 6.5 9.4 10.0
Department of Industry, Innovation, Science, Research and Tertiary Education - .. .. - -

The Government will provide $29.8 million over four years to establish the Manufacturing Technology Innovation Centre (MTIC). The MTIC will create networks with major manufacturers, small and medium enterprises, industry bodies and research organisations to improve business performance through utilising new technologies, business processes and technical knowledge.

The MTIC will use existing Enterprise Connect infrastructure to provide grants for innovation projects, as well as establishing agreements with expert bodies to provide tailored advice to individual firms.

Mathematics and science — increasing participation in schools and universities

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - 4.1 9.5 11.8 11.7
Department of Education, Employment and Workplace Relations -2.0 0.6 4.7 4.7 4.5
Total - Expense -2.0 4.7 14.1 16.5 16.2

The Government will provide $54.0 million over four years to improve participation in the study of mathematics and science at school and university in response to the Chief Scientist's report Mathematics, Engineering and Science in the National Interest. Elements of the measure are:

  • $20.0 million over four years to support university‑led outreach projects to encourage school students to study mathematics and science at the secondary and post‑secondary level;
  • $10.9 million over four years to support the development of innovative approaches to delivering university mathematics and science courses with a view to improving the pipeline of mathematics and science teachers being trained;
  • $6.5 million over four years to increase funding for the Scientists and Mathematicians in Schools Program to improve the teaching and learning of science and mathematics in primary and secondary schools by creating and supporting long‑term partnerships between teachers and scientists or mathematicians;
  • $5.0 million over four years to extend the 'Primary Connections: Linking Science with Literacy' and 'Science by Doing' projects, and supporting further development of high‑quality online digital resources for primary and secondary teachers that provide guidance on innovative teaching techniques in mathematics and science;
  • $4.3 million over four years to appoint a National Mathematics and Science Education and Industry Adviser to the Office of the Chief Scientist to provide strategic advice, build connections between key stakeholders, and support the development of projects to support awareness and outreach initiatives that will increase participation and achievement in mathematics and science by secondary and tertiary students;
  • $3.0 million over four years to strengthen existing national advisory services for science and mathematics teachers, develop advice on best practice practical activities that can be delivered in schools, and develop online resources for science and mathematics teachers;
  • $2.4 million over three years from 2013‑14 to extend funding for the Mathematics and Science Olympiads to help to build the profile and prestige of science and mathematics study and the teaching on which it is founded; and
  • $2.0 million over four years to support the continued delivery of the Australian Mathematical Sciences Institute's (AMSI) annual program of short intensive courses and research scholarships for mathematics, statistics and science students at the undergraduate, masters and PhD levels.

The Government will also target support for mathematics and science teachers as part of the development of Australian Curriculum Connect.

The cost of this measure will be partially offset by the redirection of $4.5 million over two years from existing Commonwealth discretionary funding under the Smarter Schools National Partnership for Improving Teacher Quality.

Ministerial Standing Council on Tertiary Education, Skills and Employment — Secretariat services

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education .. 0.1 .. -0.1 -0.1
Department of Industry, Innovation, Science, Research and Tertiary Education 0.5 0.8 0.8 0.8 0.8
Department of Education, Employment and Workplace Relations 1.2 - - - -
Total - Revenue 1.7 0.8 0.8 0.8 0.8

The Government will provide $16.5 million over five years to establish a centralised secretariat for the new Standing Council on Tertiary Education, Skills and Employment (SCOTESE) and other related Council of Australian Governments councils within the Department of Industry, Innovation, Science, Research and Tertiary Education.

Consistent with the previous arrangements, the new centralised secretariat will be supported through additional state and territory government contributions estimated at $3.7 million over four years.

The Government will cease funding for TVET Australia providing savings of $1.2 million in 2011‑12. It will also redirect $7.0 million over five years from the National Skills Standards Council (NSSC) and $13.5 million over five years from the National Training System Commonwealth Own Purpose Expenditure (NTS‑COPE).

This measure will provide net savings of $5.2 million over four years through efficiencies created by the centralisation of secretariat services. Savings from this measure will be redirected to support other Government priorities.

Murdoch University Px2 outreach program — expansion

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education 5.0 - - - -
Department of the Treasury -5.0 - - - -
Total - Expense - - - - -

The Government will provide $5.0 million in 2011‑12 for the expansion of the Murdoch University Px2 outreach program.

The Px2 outreach program supports partnerships between Murdoch University and government schools in the Peel and Rockingham/Kwinana regions, providing pathways to higher education for students from low socio‑economic backgrounds. The measure will enable Murdoch University to increase the number of partner schools within the Px2 outreach program to 13, covering more than 8,000 students.

The cost of this measure will be met from a redirection of $5.0 million made available as a result of the Western Australian Government's decision not to participate in the first stage of the National Partnership Agreement on Empowering Local Schools.

MySkills website — ongoing administration and enhancements

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - 2.2 2.1 1.6 0.6

The Government will provide $6.5 million over four years for the ongoing administration and enhancement of the MySkills website. The website will support skills development through the provision of comprehensive information on vocational education and training.

Further information can be found in the press release of 19 March 2012 issued by the Prime Minister.

National Foundation Skills Outreach and Leadership Project — community education campaign — cessation

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - -1.4 -1.7 -3.1 -4.4

The Government will cease funding for the community education campaign component of the National Foundation Skills Outreach and Leadership Project. This will provide savings of $10.5 million over four years to support other Government priorities.

The community education campaign was announced in the 2010‑11 Budget as a joint Commonwealth‑state initiative, designed to increase awareness of language, literacy and numeracy (LLN) initiatives and reduce the stigma for people with LLN skill development needs.

National Skills Reform — changes to income contingent loans for Vocational Education and Training students

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - 9.7 30.6 46.1 48.4
Department of Industry, Innovation, Science, Research and Tertiary Education - -1.8 2.7 32.0 41.8

The Government will provide $60.0 million over four years to make changes to income contingent loan arrangements for publicly funded Vocational Education and Training (VET) students.

The extension of income contingent loans will be trialled for the following high‑demand Certificate IV courses: aged care and community services; disability work and disability; plumbing and services; training and assessment; and competitive manufacturing. The trial will be conducted in Victoria and South Australia from 1 January 2013 and in all other states from 1 January 2014.

The Government announced in the 2010‑11 Budget that it would extend access to VET FEE‑HELP and income‑contingent loans for students through approved VET providers at the Diploma level and above, in all States and Territories agreeing to significant VET reforms. All States and Territories signed the National Partnership Agreement on Skills Reform on 13 April 2012 agreeing to deliver a range of structural reforms.

Details of the average weighted loan amounts are set out in the National Partnership Agreement.

State and Territory governments will be required to contribute 50 per cent of deferral costs associated with the loans, based on actual take‑up and calculated in arrears.

National Workforce Development Fund — additional support for mature age workers

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - 5.0 10.0 10.0 10.0

The Government will provide an additional $35.0 million over four years to the National Workforce Development Fund (NWDF) to improve the skills of mature age workers, aged 50 years and over, consistent with their workforce development needs.

In accordance with the NWDF program guidelines, organisations will be required to make a co‑contribution of between 33 and 66 per cent of the cost of training provided to their employees depending on the size of the enterprise.

The NWDF was established in the 2011‑12 Budget as part of the Building Australia's Future Workforce package to support training and workforce development in areas of current and future skills need. The NWDF forms part of the Australian Government SkillsConnect network, which was announced on 21 September 2011 to consolidate Government skills programs and better target training to meet industry and employer needs.

National Workforce Development Fund — redirect funding

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - -6.1 -6.0 -6.0 -

The Government will redirect $18.1 million over three years from the National Workforce Development Fund (NWDF) to support the establishment of the Australian Skills Centres of Excellence.

The NWDF was established in the 2011‑12 Budget as part of the Building Australia's Future Workforce package to support training and workforce development in areas of current and future skills need. The NWDF forms part of the Australian Government SkillsConnect network, which was announced on 21 September 2011 to consolidate the Government's skills programs and better target training to meet industry and employer needs.

See also the related expense measure titled Australian Skills Centres of Excellence in the Industry, Innovation, Science, Research and Tertiary Education portfolio.

Small Business Advisory Services program — continuation

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - 6.9 6.9 6.9 6.9

The Government will provide $27.5 million over four years to continue the Small Business Advisory Services (SBAS) program. The Government will also make SBAS an ongoing program. The SBAS program helps small businesses to improve sustainability, productivity and growth through providing access to low‑cost business advisory services and activities to enhance business management skills.

Grants will be provided through a competitive, merit‑based process to third‑party service organisations to provide small businesses with access to general face‑to‑face business advisory services, including information and referral services.

The Prime Minister's Queen Elizabeth II Diamond Jubilee Scholarship — establishment

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - - - - -

The Government will provide $0.4 million over four years to establish the Prime Minister's Queen Elizabeth II Diamond Jubilee Award to mark the 60th anniversary of the accession of Her Majesty Queen Elizabeth II.

One scholarship will be awarded each year to a high achieving female student, providing up to $118,500 over two years to undertake postgraduate study overseas in the field of women's leadership.

The cost of this measure will be met from within the existing resourcing of the Department of Industry, Innovation, Science, Research and Tertiary Education.

Further information can be found in the press release of 7 February 2012 issued by the Prime Minister.

University of Western Sydney — Female Orphan School restoration — contribution

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education 7.0 - - - -

The Government will provide $7.0 million in 2011‑12 to contribute to the cost of restoring the East Wing of the Female Orphan School located within the Parramatta campus of the University of Western Sydney.

The Female Orphan School was established in 1813 as the first purpose‑built orphanage in Australia and is the nation's oldest public building. Once restored, the East Wing of the building will provide a cultural hub in western Sydney and will accommodate the Whitlam Institute, the Whitlam Prime Ministerial Library and a public art gallery named in honour of the late Margaret Whitlam AO.

VET FEE‑HELP Assistance Scheme — redesign

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education - 0.6 0.4 0.3 0.2
Department of Industry, Innovation, Science, Research and Tertiary Education - 1.6 0.6 - -

The Government will provide $3.6 million over four years (including $2.2 million in capital funding) to support the expansion of income contingent loans for Vocational Education and Training (VET) students studying at the diploma level and above.

The funding includes:

  • $2.8 million over four years for enhancements to IT systems to streamline the exchange of information between the Department of Industry, Innovation, Science, Research and Tertiary Education and Registered Training Organisations; and
  • $0.9 million over four years for the National Centre for Vocational Education Research to expand and improve collection of VET FEE‑HELP data from VET providers and graduates.

This measure will support the implementation of the 2010‑11 Budget measure Skills for Sustainable Growth — A Training System for the Future — A National Entitlement to a Quality Training Place that provided access to income contingent loans for VET students studying at the diploma level and above in states and territories agreeing to undertake significant VET reforms. These arrangements will form part of the National Partnership Agreement on Skills Reform that will commence on 1 July 2012.

Vocational Education and Training National Support — redirection of funding

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education -3.0 -14.9 -11.1 -4.1 -1.3

The Government will redirect uncommitted funds from the Vocational Education and Training (VET) National Programs. This will provide savings of $34.4 million over five years from 2011‑12 to support other Government priorities.

VET National Programs provide financial support for activities aimed at strengthening the National Training System through: support for industry, joint Commonwealth/State funding for group training, equity funding and VET system support.

Support for the VET sector will continue to be provided through the new $1.75 billion reform based National Partnership Agreement on Skills Reform and the new National Agreement on Skills and Workforce Development, which will commence on 1 July 2012.

Workforce Innovation Program — redirection

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education -1.0 -4.9 -5.0 -6.1 -9.3

The Government will discontinue the Workforce Innovation Program from 2015‑16. The program will be closed to new applications from 8 May 2012, allowing final funding decisions to be made by 30 June 2012. Funding will continue to be provided for agreed projects until 30 June 2015. This will provide savings of $26.3 million over four years to support other Government priorities.

The Workforce Innovation Program provides grants to organisations, including industry associations and industry peak bodies, for non‑ongoing pilot projects that address current and future workforce and skills development needs.

The Government will continue to support workforce innovation through the Australian Workforce and Productivity Agency, which will commence operations from 1 July 2012.

Zelman Cowen John Monash Scholarships — establishment

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education 6.0 - - - -

The Government will provide $6.0 million in 2011‑12 to create two perpetual postgraduate scholarships in memory of former Governor‑General Sir Zelman Cowen AK GCMG GCVO QC.

The scholarship will be awarded each year through a competitive process and provide up to $150,000 over three years for each recipient to study at a leading international university. The scholarship will focus on building leadership and the capacity to contribute to Australia's interest.

The Commonwealth funding will be paid into the General Sir John Monash endowment fund with earnings used to fund the scholarships.

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