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Policy initiatives > Budget highlights > Australian Capital Territory 2021-22
The 2021-22 budget was released by the Barr Labor Government on 6 October 2021. Budget highlights relating to skills and training are provided below. Direct links to relevant budget papers are provided for quick and easy access.
The Australian Capital Territory (ACT) budget is typically delivered in June. The 2020-21 budget was delayed until February 2021 due to the coronavirus (COVID-19) pandemic and the state election held on 17 October 2020. Delivery of the 2021-22 budget was initially scheduled for 31 August 2021. However the lockdown restrictions that were put in place on 12 August in response to a COVID-19 outbreak required a revision of the Assembly sitting program and the delivery of the Budget was deferred, acknowledging the need to develop and implement additional public health, business and community support initiatives (Budget 2021-22: Budget outlook, p. 10).
$2.273 million is allocated to the Boosting Canberrans' Skills - More support for vocational education and training and apprenticeships initiative which includes additional funding for apprenticeships and traineeships through the User Choice (Australian Apprenticeships) program (Budget 2021-22: Budget outlook, p. 122).
The COVID-19 Business support - Payroll tax exemptions for new apprenticeships and trainees - continuation initiative extends the COVID-19 payroll tax exemption for wages paid to new apprentices or trainees employed after 1 August 2020 from the start of employment until 30 June 2022. The initiative was extended in the 2020-21 budget (p. 73) following its introduction as part of the Youth Support Package in the August 2020 Economic and Fiscal Update (p. 91) and is expected to result in forgone revenue of $200 000 in 2021-22 (Budget 2021-22: Budget outlook, p. 128).
The Headstart pilot program, which will provide 50 senior secondary school students with the opportunity to complete an apprenticeship and extend their ACT senior secondary certification by a year, is allocated total expenses of $2.206 million over three years, with $602 000 provided in 2021-22. This initiative is part of the 'Students at the Centre' foundation of the Future of Education Strategy's second phase Investing in public education - Headstart pilot program (Budget 2021-22: Budget outlook, p. 164).
The 2021-22 budget includes $420 000 to continue the Women's Return to Work Program, which supports women re-entering training or employment, for a further three years ($140 000 in each year); $6.2 million in 2021-22 to extend the Jobs for Canberrans Fund; and $2 million in 2021-22 to expand the Future Jobs Fund to provide grants to the higher education and research sector which will create and sustain jobs in growth industries (Budget 2021-22: Women's statement, p. 6; Budget 2021-22: Budget outlook, p. 159).
Analysis included in the 2021-22 Economic overview states the closed international borders reducing the entry of students and skilled migrants and domestic travel restrictions constraining cross border movements have significantly affected the labour market, resulting in the emergence of labour shortages for both skilled and unskilled jobs. This has been reflected in an increase in job vacancies compared to the number of unemployed people, indicating that some businesses are finding it difficult to find workers with the skills they need. The likely earlier than previously expected opening of international borders and greater freedom of movement domestically as vaccination thresholds are reached will be an important part of addressing this issue which will be key to the recovery of the economy (Budget 2021-22: Budget outlook, p. 18).
The COVID-19 Response - Supporting Canberra's Arts and Events initiative extends support to the Cultural Facilities Corporation (CFC) to address the adverse impact of the COVID-19 pandemic on the CFC's theatre revenues and to ensure continued delivery of vocational training for stage and theatre technicians. The costs of the proposal will be partially offset from funding provided through the August 2020 Economic and Fiscal Update (p. 74) and the 2020-21 budget (p. 62), resulting in net cost of services estimated at $2.579 million in 2021-22 (Budget 2021-22: Budget outlook, p. 160).
The Infrastructure Investment Program includes $5 billion of General Government Sector (GGS) and $1.4 billion Public Trading Enterprises (PTEs) investment over the five years to 2025-26, $1.3 billion of which is allocated in 2021-22. The contribution from the Commonwealth Government for the GGS infrastructure investment program is around $610 million over five years. Significant infrastructure projects include progressing Light Rail Stage 2; the Canberra Hospital Expansion; the new Canberra Institute of Technology (CIT) Woden Campus; growing and renewing more public housing; planning for new hospital infrastructure in Canberra’s north; additional walk-in centres; and building new and expanding schools in Gungahlin (Budget 2021-22: Budget outlook, pp. 48 and 279).
The Industry Coordination Project, which is led by the Construction, Forestry, Maritime, Mining and Energy Union, involves collaboration and engagement with industry, unions, and key stakeholders across the ACT Government to support safe and inclusive workplaces in the construction industry, and to increase women's participation and retention in the industry. The CIT Campus Woden Project includes a specific requirement for increased female participation across the project that will be measured throughout the delivery (Budget 2021-22: Women's statement, p. 6).
Since the start of the pandemic, the Government has committed over $475 million in targeted business support. The 2021-22 budget includes various economic support measures to help local businesses through the current phase of the pandemic, including: over $290 million in COVID-19 Business Support grants, which is jointly funded with the Commonwealth Government; $46.5 million for the Small Business Hardship Scheme, which provides up to $10 000 in financial support to businesses that have been significantly affected during the COVID-19 pandemic; the COVID-19 Tourism, Accommodation Provider, Hospitality, Arts and Events and Fitness Industry Grants of up to $25 000 and other measures to support the tourism industry; $6 million in commercial tenancy support; rental relief on ACT Government properties; payroll tax exemptions for new apprentices and trainees; and commercial liquor permit fee waivers and a six-month extension of waivers of vehicle registration fees for hire cars and charter buses registered in the ACT (Budget 2021-22: Budget outlook, p. 100).
The total Commonwealth Payments for specific purposes and National Partnership Payments to the ACT for Skills and Workforce Development are estimated at $34.116 million for 2021-22.
The ACT has been allocated $26.391 million under the National Agreement for Skills and Workforce Development for 2021-22 (Budget 2021-22: Budget outlook, p. 274).
The budget initiative Boosting Canberrans' Skills - More support for vocational education and training and apprenticeships comprises additional funding for apprenticeships, traineeships and other vocational education activities through the User Choice (Australian Apprenticeships) and Skilled Capital programs, as well as to support delivery of existing skills and vocational education training (VET) programs in the transition to a new National Skills Agreement, which is scheduled to be finalised in 2022. Net expenses for the initiative are estimated at $2.273 million (Budget 2021-22: Budget outlook, p. 122).
The ACT Government will participate in the national extension of the JobTrainer Fund to provide free training places for young people and others who face barriers in the labour market. The Fund will support the delivery of an additional 2,500 free training places in areas of skills need or employment growth, supporting the economic recovery from COVID-19 in the ACT. The costs of the extension will be shared equally by the ACT and Commonwealth Governments. The Boosting Canberrans' Skills - JobTrainer extension initiative has estimated total expenses of $10.05 million in 2021-22, offset by Commonwealth funding of $5.025 million. The initiative also shows total expenses of $6.7 million in 2022-23, offset by $3.35 million of Commonwealth funding (Budget 2021-22: Budget outlook, p. 121).
General government expenses allocated for VET are $158.912 million in 2021-22. The interim outcome for 2020-21 is $133.254 million (Budget 2021-22: Budget outlook, p. 316).
The Chief Minister, Treasury and Economic Development Directorate Output 3.5: Skills has a total cost of $50.92 million and controlled recurrent payments of $48.991 in 2021-22. Through the Skills output,the Directorate facilitates skilled and business migration pathways, and partners with registered training organisations to support skills development in the ACT. The Directorate will deliver this output through: nominating skilled migrants to address skills shortages and support sustained population growth; nominating migrants who are seeking to invest in ACT businesses; subsidised vocational education and training in skills needs areas, including free training for jobseekers and young people underthe JobTrainer Fund, and free infection control training for customer facing workers under the National Infection Control Training Fund; and positioning the ACT vocational and education sector as a major driver for economic recovery and growth in key sectors (Budget 2021-22: Budget statements B, p. 31).
The ACT public VET provider, the Canberra Institute of Technology (CIT), is a Territory Authority established under the Canberra Institute of Technology Act 1987. CIT has an allocated total cost of $127,284 million and controlled recurrent payments of $78.742 million in 2021-22 (Budget 2021-22: Budget statements B, p. 158; Budget 2021-22: Budget outlook, p. 74).
The ACT Government is constructing a state-of-the-art CIT campus and adjacent public transport interchange in Woden at a cost of $294 million. Construction of the CIT facility will commence in 2022. An on-campus, multi-bed Youth Foyer will also provide integrated learning, accommodation and support for young people who are committed to education and training but are at risk of homelessness. It is anticipated that students will be able to start studying at the new campus at the beginning of 2025 (Budget 2021-22: Budget outlook, p. 74).
Prior year budget highlights can be accessed by clicking on the buttons below.
NCVER (National Centre for Vocational Education Research) 2021, Budget highlights: Australian Capital Territory, VET Knowledge Bank, NCVER, Adelaide, <https://www.voced.edu.au/vet-knowledge-bank-policy-initiatives-budget-highlights-australian-capital-territory-2021-22>.
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