Australian Government, 2012‑13 Budget
Budget

Appendix A: Policy Decisions taken since the 2012-13 Budget (Continued)

Expense Measures (Continued)

Industry, Innovation, Science, Research and Tertiary Education

Alcoa's Point Henry aluminium smelter — assistance

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education 42.0

The Government provided $42.0 million in 2011‑12 to assist Alcoa Australia (Alcoa) to restructure its Point Henry aluminium smelter in Geelong and secure its operation until at least mid 2014.

The funding will support additional investment in skills and training, plant maintenance and repair activities at the Point Henry smelter.

The grant was made contingent on Alcoa securing assistance from the Victorian Government.

Further information can be found in the joint press release of 29 June 2012 issued by the Minister for Industry and Innovation and the Premier of Victoria.

Australian Apprenticeship Access Program — reduction

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education ‑3.0 ‑4.0 ‑4.0

The Government will redirect $11.0 million over three years from the Australian Apprenticeship Access Program to support other Government priorities.

The Australian Apprenticeship Access Program assists job seekers who experience difficulty in accessing skilled employment by providing nationally recognised pre‑vocational training. Funding of $120.7 million over four years will continue to be provided under the program.

Australian Apprenticeships Incentives Program — modifications

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education ‑10.3 ‑18.9 ‑9.8 ‑1.3

The Government will modify changes to the Australian Apprenticeships Incentive Program announced in the 2012‑13 Budget including:

  • introducing grandfathering arrangements to maintain employer completion incentive payments at the pre‑existing level ($2,500) for employers of existing worker apprentices in occupations not on the National Skills Needs List (NSNL) and where the apprentice commenced prior to 1 July 2012. This will ensure that total standard employer incentives available to these employers (who have already received a $1,500 commencement payment) do not exceed the $4,000 in standard incentive payments available to employers of existing worker apprentices on the NSNL.
  • delaying payment from three to six months after commencement for supplementary employer commencement incentives including incentives to support rural, regional, school‑based, mature‑aged apprentices and apprentices in declared drought areas. This will align supplementary employer commencement incentives with new arrangements for standard commencement incentive payments.

The measure will provide estimated savings of $40.2 million over four years from 2012‑13, which will be re‑directed to support other Government priorities.

Australian Apprenticeships Incentives Program — remove standard recommencement incentive payment for non‑NSNL workers

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education ‑3.5 ‑3.5 ‑3.4 ‑3.4

The Government will discontinue the standard employer recommencement incentive payment for selected groups of apprentices under the Australian Apprenticeships Incentives Program. This measure will provide savings of $13.8 million over four years to be redirected to support other government priorities.

The standard recommencement incentive payment is a $750 payment paid to employers of out‑of‑trade Australian apprentices at Certificate III and IV level and selected Diploma and Advanced Diploma qualifications.

This measure will affect employers of:

  • existing workers who establish a 3 month employment relationship with their employer prior to recommencing their apprenticeship in a non‑NSNL apprenticeship occupation;
  • apprentices undertaking a Diploma or Advanced Diploma level qualification, with the exception of people studying for aged care, child care and nursing qualifications; and
  • part‑time and casual apprentices in non‑NSNL occupations.

Australian Paper's Maryvale Pulp and Paper Mill — assistance

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education 4.2 2.9 2.4

The Government will provide $9.5 million over three years to assist Australian Paper to establish a de‑inked pulp facility at its pulp and paper mill located at Maryvale in Victoria.

The new facility will enable Australian Paper to produce its own de‑inked pulp, which it will use in the manufacture of printing and communications paper. This will reduce Australian Paper's reliance on native forest fibre.

The grant is contingent on Australian Paper securing assistance from the Victorian Government.

See also the related savings measures titled Green Building Fund — redirection, Textiles, Clothing and Footwear Structural Adjustment Program — redirection and South‑East South Australia Innovation and Investment Fund — redirection.

Energy Brix Australia Corporation — assistance

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education 25.8 9.8 38.0 61.7
Department of Resources, Energy and Tourism 25.0
Clean Energy Regulator ‑27.9 ‑29.4 ‑33.5
Department of Regional Australia, Local Government, Arts and Sport ‑9.8 .. ‑22.7 30.0
Total — Expense 50.8 10.1 9.6 ‑3.5
Clean Energy Regulator

The Government will provide $160.3 million over four years from 2011‑12 to assist Energy Brix Australia Corporation (EBAC) in maintaining briquette production at its Morwell, Victoria, facility for up to two years. This is expected to benefit around 50 businesses across Australia by maintaining a suitable supply of coal briquettes over a sufficient period of time to enable them to transition to more sustainable fuel sources.

A condition of the assistance is that EBAC relinquishes carbon permits received under the Energy Security Fund transitional assistance, which will provide savings estimated at $126.0 million over four years from 2013‑14, including $35.3 million in 2016‑17.

The measure also includes a reallocation of $32.5 million from the period 2012‑13 to 2014‑15 into 2015‑16 within the Regional Structural Adjustment Assistance program, including $2.5 million in 2016‑17.Further information can be found in the joint press release of 29 June 2012 issued by the Minister for Resources and Energy, the Minister for Industry and Innovation and the Minister for Regional Australia, Regional Development and Local Government.

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 ‑0.5 ‑0.6

The Government will redirect funding of $1.1 million over two years from the Green Building Fund to partially offset the cost of providing assistance to Australian Paper's Maryvale Pulp and Paper Mill.

The Green Building Fund aims to reduce the impact of Australia's built environment on greenhouse gas emissions by encouraging investment that reduces energy consumption in the operation of existing commercial office buildings, hotels and shopping centres. Funding of $34.1 million over two years will continue to be provided under the program.

See also the related expense measure titled Commonwealth Assistance for Australian Paper's Maryvale Pulp and Paper Mill.

Higher Education — Facilitation Funding — cessation

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education ‑52.6 ‑106.9 ‑110.6

The Government will cease Facilitation Funding for universities from 1 January 2014 which will provide savings of $270.1 million over three years from 2013‑14. Universities will continue to receive Facilitation Funding until the end of 2013 for signing the 2011‑2013 mission‑based compacts. Agreement to future mission‑based compacts will be a condition of universities receiving funding under the Commonwealth Grant Scheme.

Facilitation Funding was announced in the 2009‑10 Budget as conditional funding to encourage universities to agree to the inclusion of performance targets in their mission‑based compacts.

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

Manufacturing Leaders Group

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education 0.7 1.0 1.1 1.3

The Government will provide $5.6 million over five years (including $1.5 million in 2016‑17) to establish a Manufacturing Leaders Group (MLG) and an annual Australian Economic Dialogue (AED).

The MLG will comprise 18 appointed industry leaders who will meet biannually to discuss and develop research, analysis and strategic advice to Government relevant to the manufacturing industry and to the development of industry policy. The work undertaken by the MLG will be supplemented by the AED, which will provide an opportunity for a further 150 industry, union, and Government representatives and researchers to meet annually to explore issues of relevance to the manufacturing industry. The MLG and the AED will be supported by specific task groups to investigate key issues.

This measure forms part of the Government's response to the recommendations of report by the non‑Government members of the Prime Minister's Taskforce on Manufacturing and represents a new consultation framework that will deliver high quality analysis and strategic advice to support a whole‑of‑government approach to industry policy development, implementation and evaluation.

Further information can be found in the joint press release of 16 August 2012 issued by the Prime Minister and the Minister for Industry and Innovation.

Parenting Payment recipients — additional training support for grandfathered recipients

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

The Government provided $20.0 million in 2011‑12 to fund additional training places for Parenting Payment (PP) recipients who will be impacted by the 2012‑13 Budget measure Parenting Payment — changed eligibility for 1 July 2006 grandfathered recipients. This additional funding supplements the $80.1 million committed to the National Partnership Agreement on Training Places for Single and Teenage Parents from 2011‑12 to 2015‑16, including $6.7 million in 2011‑12.

From 1 January 2013, families who were in receipt of PP prior to 1 July 2006 and who have a youngest child aged six years or over (for partnered recipients) or eight years or over (for single recipients), will cease to be eligible for PP and will be supported through Newstart Allowance while they seek employment. This will remove grandfathering arrangements that applied to pre — 1 July 2006 PP recipients (which allowed them to obtain PP until their youngest child turned 12), aligning eligibility conditions for all PP recipients.

The measure will assist PP recipients seeking to gain the skills needed to re‑enter the workforce.

The cost of this measure was met from the existing resourcing of the VET National Support program.

Premium Fresh Tasmania — assistance

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education 0.3
Department of Regional Australia, Local Government, Arts and Sport ‑0.3
Total — Expense

The Government will provide $500,000 in 2012‑13 towards a $750,000 assistance package (with $250,000 to be provided by the Tasmanian Government) to Premium Fresh Tasmania to implement structural changes required to ensure its ongoing viability.

Premium Fresh, located in North West Tasmania, partners with over 80 landholders to grow, harvest, pack and ship a variety of vegetables for Australian and international markets.

The cost of this measure will be met from within existing resourcing of the Department of Industry, Innovation, Science, Research and Tertiary Education and the Department of Regional Australia, Local Government, Arts and Sport. The grant will be administered by the Department of Industry, Innovation, Science, Research and Tertiary Education.

Further information can be found in the joint press release of 31 August 2012 issued by the Parliamentary Secretary for Agriculture, Fisheries and Forestry and the Tasmanian Minister for Economic Development.

South‑East South Australia Innovation and Investment Fund — redirection

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

The Government will redirect funding of $1.4 million in 2012‑13 from the South‑East South Australia Innovation Investment Fund to partially offset the cost of providing assistance to Australian Paper's Maryvale Pulp and Paper Mill.

The South‑East South Australia Innovation and Investment Fund is a competitive, merit‑based grants program for innovative job creation projects to strengthen south‑east South Australia's regional economy and employment base. Funding of $6.6 million in 2012‑13 will continue to be provided under the program.

See also the related expense measure titled Commonwealth Assistance for Australian Paper's Maryvale Pulp and Paper Mill.

Square Kilometre Array Radio Telescope — pre‑construction activities

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 $27.5 million over four years to support pre‑construction activities for the Square Kilometre Array (SKA) project. The SKA Organisation announced a dual‑site approach to the SKA project where the project will be shared between Australia and South Africa, with each country responsible for building a part of the total project infrastructure. The funding will be provided to:

  • make an additional host contribution to the SKA Organisation ($4.7 million);
  • support Australian science institutes and firms to undertake pre‑construction work packages ($14.9 million); and
  • support the SKA Taskforce within the Department of Industry, Innovation, Science, Research and Tertiary Education to coordinate project activities in Australia and for costs associated with negotiating land acquisition, Indigenous heritage surveys and environmental approvals ($7.9 million).

Funding for the pre‑construction activities was included in the forward estimates in the 2011‑12 Budget.

Student Income Support — delay Masters by coursework for a further three years

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education ‑32.3 ‑66.5 ‑68.2

The Government will delay by a further three years to 1 January 2017 the extension of student income support to all coursework Masters program students. This measure is estimated to provide savings of $167.0 million over three years from 2013‑14.

Savings from this measure will be redirected to support other Government priorities. Support will continue to be available for qualifications that are mandatory for employment.

Student income support — Student Start‑up Scholarships — pause indexation

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Human Services ..
Department of Veterans' Affairs .. .. ‑0.1 ‑0.1
Department of Education, Employment and Workplace Relations ‑0.1 ‑0.2 ‑0.4 ‑0.6
Department of Industry, Innovation, Science, Research and Tertiary Education ‑2.7 ‑12.7 ‑26.3 ‑39.1
Total — Expense ‑2.8 ‑13.0 ‑26.8 ‑39.8

The Government will pause indexation of Student Start‑up Scholarships and maintain the scholarships at the 2012 rate of $2,050 for four calendar years from 1 January 2013. This measure is estimated to provide savings of $82.3 million over four years.

Student Start‑up Scholarships assist with the up‑front costs of items such as textbooks and specialised equipment for students undertaking approved scholarship courses. Student Start‑up Scholarships will continue to be available to eligible Youth Allowance, ABSTUDY Living Allowance and Austudy recipients at the 2012 maximum rate.

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

Sustainable Research Excellence — sustainable growth

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education ‑79.4 ‑158.6 ‑154.0 ‑106.8

The Government will make changes to the rate of funding for the Sustainable Research Excellence (SRE) program to ensure sustainable growth. With these changes, the program will continue to increase on an annual basis, reaching $300 million in 2016, three years later than originally forecast. This is estimated to provide savings of $498.8 million over four years. Funding would then be indexed annually from 2017 by the Higher Education Indexation Factor.

The SRE program helps universities fund the project‑related infrastructure costs (excluding capital purchases) associated with their research activities. The Government has provided $359.6 million to universities through the SRE program since 2009‑10.

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

Targeting skills in need — Better targeting part‑time and casual incentives

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education ‑19.2 ‑77.4 ‑90.4 ‑89.8

The Government will discontinue the $1,500 standard commencement incentive and reduce the standard completion incentive to $1,500 for employers of part‑time and casual apprentices in non‑National Skills Needs List occupations. The measure will ensure that employer incentives are targeted at full‑time apprenticeships, which deliver higher productivity gains.

This measure will continue to target apprenticeship incentives for part‑time and casual apprentices and trainees in occupations in areas of skills shortage, where the $4,000 standard incentives will be retained. Standard commencement and completion payments will continue to be available for employers of full‑time apprentices in non‑National Skills Needs List occupations.

The measure will apply immediately for all commencing apprentices. Employers of ongoing apprentices will continue to be eligible for incentives under the previous arrangements until 1 July 2013.

This measure is estimated to provide savings of $276.7 million over four years, which will be redirected to support other Government priorities.

Targeting skills in need — Kickstart for trades

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education 1.7 35.5 20.3

The Government will provide $57.5 million over two years to increase the take‑up of apprenticeships in selected occupations on the National Skills Needs List (NSNL). This will be initially targeted at construction trades.

Small and Medium Enterprises with up to 200 employees that employ and retain an apprentice on the NSNL will be eligible for a $3,350 bonus payment. The payment will be made in two instalments: $850 paid at six months from commencement and $2,500 paid at twelve months from commencement. Employers receiving the Kickstart Bonus will also be eligible for standard incentive payments of $4,000. Apprentices are also eligible for the Government's $5,500 Tools for Your Trade payments.

The measure will apply for commencements between 1 December 2012 and 28 February 2013, and is capped at 21,000 places.

Targeting skills in need — Removing incentives for Diplomas and Advanced Diplomas

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education ‑1.8 ‑23.0 ‑29.5 ‑29.3

The Government will discontinue the standard commencement incentive and standard completion incentive for employers of apprentices undertaking a Diploma or Advanced Diploma level qualification, with the exception of people studying for aged care, child care and nursing qualifications. The measure will ensure that employer incentives are targeted to qualifications and occupations of highest need.

This measure will continue apprenticeship incentives for Diploma or Advanced Diploma in aged care, child care and nursing qualifications. Incentives for all other Diploma and Advanced Diploma qualifications will no longer be available to employers. The Government will continue to provide assistance for higher level qualifications through the National Workforce Development Fund and through an expansion of income contingent loans as part of the National Partnership Agreement on Skills Reform.

The measure will apply immediately for all commencing apprentices. Employers of ongoing apprentices will continue to be eligible for incentives under the previous arrangements until 1 July 2013.

This measure is estimated to provide savings of $83.7 million over four years, to be redirected to support other Government priorities.

Targeting skills in need — Support for Adult Australian Apprentices — amended arrangements

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education ‑17.6 ‑12.0 ‑25.9 ‑25.6

The Government will replace the current employer component of the Support for Adult Australian Apprentices (SAAA) program with a single $4,000 lump sum payment, paid to employers at the end of the first year of an apprenticeship. This measure is estimated to provide savings of $81.2 million over four years.

Under current arrangements, employers who pay an apprentice at a level at or above the national minimum wage can receive weekly payments of $150 over the first year of the apprenticeship, up to $7,800 in total, and payments of $100 per week over the second year of an apprenticeship, up to $5,200 in total.

Under grandfathering arrangements, current employers of first year apprentices who have been receiving weekly payments will continue to do so until they have received the $7,800 maximum total payments. Grandfathering arrangements will be available for up to 12 months.

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

Textiles, Clothing and Footwear Structural Adjustment Program — redirection

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Department of Industry, Innovation, Science, Research and Tertiary Education ‑2.3 ‑2.3 ‑2.4

The Government will redirect funding of $7.0 million over three years from the Textiles, Clothing and Footwear (TCF) Structural Adjustment Program to partially offset the cost of providing assistance to Australian Paper's Maryvale Pulp and Paper Mill.

The TCF Structural Adjustment Program aims to assist retrenched workers in the TCF industry to secure alternative employment through Job Services Australia. The program also seeks to support a more viable TCF industry by providing assistance for industry consolidation and restructuring. Funding of $7.4 million over three years will continue to be provided under the program.

See also the related expense measure titled Commonwealth Assistance for Australian Paper's Maryvale Pulp and Paper Mill.

Unique Student Identifier — introduction

Expense ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Unique Student Identifier Agency 2.5 2.0 2.1
Department of Industry, Innovation, Science, Research and Tertiary Education ‑2.5 ‑2.0 ‑2.1
Total — Expense
Unique Student Identifier Agency

The Government will provide $21.6 million over four years to establish a Unique Student Identifier (USI) for all students undertaking accredited training in the Vocational Education and Training (VET) sector from 1 January 2014.

The USI will support better linkage of data on course enrolments and completions, assisting policy development and allowing students to request transcripts of their study across multiple VET providers.

The measure includes $6.7 million over three years for the establishment and operation of an agency to administer the USI, which is expected to commence operations on 1 July 2013. The measure includes a further $9.5 million over four years for a Departmental taskforce that will manage the implementation of the new agency and $5.4 million over three years for associated capital expenditure.

The cost of this measure will be met from the National Training System Commonwealth Own Purpose Expenditure program, within the Department of Industry, Innovation, Science, Research and Tertiary Education.

United States Studies Centre — additional support

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

The Government provided $7.0 million in 2011‑12 to the American Australian Association for the ongoing support of the United States Studies Centre.

Funding of $4.0 million was allocated for the operating costs of the United States Studies Centre located at the University of Sydney to continue its work as a centre for research, teaching and analysis of Australia/United States relations. Funding of $3.0 million was allocated for the establishment of a United States Studies Centre campus at the University of Western Australia, reflecting the importance of the region's connection to a number of United States resource companies.

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

University of Tasmania — Experimental Aquaculture Facility and the National Institute for Future Forest Industries

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

The Government provided $5.0 million in 2011‑12 to fund two University of Tasmania initiatives to support research and development in Tasmania. The funding is expected to leverage further funding support from university and industry partners.

Funding of $2.5 million was allocated to the Experimental Aquaculture Facility to refurbish existing facilities so that research on fish reproduction can be undertaken in a controlled environment that mirrors the natural environment. Funding of $2.5 million was allocated for the establishment of the National Institute for Future Forest Industries to provide national leadership to the industry in plantation management systems and sustainable forestry.

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

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