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Policy initiatives > Budget highlights > Commonwealth 2024-25
The 2024-25 budget was released by the Albanese Labor Government on 14 May 2024. Budget highlights relating to skills and training are provided below. Direct links to relevant budget papers are provided for quick and easy access.
$265.1 million is allocated over four years ($65.2 million in 2024-25) to adjust the Phase Two Australian Apprenticeships Incentive System (AAIS) payments to provide further support for apprentices, trainees and their employers in priority occupations such as clean energy, construction, manufacturing and digital technology. Under the 2022-23 March budget arrangements (pp. 12-13), financial support to apprentices, trainees and their employers was scheduled to reduce from 1 July 2024. The measure will increase Phase Two AAIS payments for apprentices in priority occupations from $3000 to $5000 and hiring incentives for priority occupation employers from $4000 to $5000 for 12 months from 1 July 2024 while a strategic review into the AAIS is undertaken. This measure builds on Working future: the Australian Government's white paper on jobs and opportunities and on the 2023-24 Mid-Year Economic and Fiscal Outlook (MYEFO) (p. 242) measure titled 'Review of Australian Apprenticeships and Incentives' (Budget paper no. 2: Budget measures, pp. 25 and 90; Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 19).
An additional $10.6 million over four years from 2024-25 is provided to support the implementation of the Australian Skills Guarantee. From 1 July 2024, the Government is introducing new national targets for apprentices, trainees and paid cadets (including specific targets for women that increase annually) to work on government-funded major projects. The aim of this initiative is to enable the introduction of a robust and reliable reporting system to monitor progress against the targets, and support suppliers to comply with their new obligations (Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 19).
The 'Housing Support' cross-portfolio budget measure provides additional funding to build more homes for Australians sooner, invest in more housing enabling infrastructure, train more construction workers and support social and affordable housing and homelessness services. The funding includes $88.8 million over three years from 2024-25 to contribute towards co-investing with the states and territories to deliver 20 000 additional Fee-Free places, including 5000 pre-apprenticeships. The places may be offered in TAFE and industry registered training organisations (RTOs) in courses relevant to the construction sector. The cost of this measure will be partially met from savings identified in the Employment and Workplace Relations Portfolio; the Government has already provided partial funding for this measure; and The Treasury manages Commonwealth payments to the states and territories (Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 20; Budget paper no. 2: Budget measures, pp. 74-75).
Eligibility to the New Energy Apprenticeships Program (NEAP) will be expanded to include work in the clean energy sector, including in construction and advanced manufacturing. This will provide access to $10 000 incentive payments and support the target of 10 000 new energy apprentices. The Government will also reimburse Group Training Organisations (GTOs) that reduce their fees for small and medium enterprises seeking clean energy, manufacturing, and construction apprentices in priority occupations (Investing in a Future Made in Australia: Skills pipeline for priority industries; Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, pp. 19-20).
To support the delivery of Australia's conventionally-armed, nuclear-powered submarines, $34.7 million is allocated over six years from 2024-25 for the Shipbuilding Employment Pathways initiative to deliver a pilot apprenticeship program in trades required to support the nuclear-powered submarine enterprise. The cost of this measure will be met from within the existing resourcing of the Department of Defence and the Australian Submarine Agency (Budget paper no. 2: Budget measures, pp. 82-83).
The Higher Education Loan Program (HELP) and other income contingent loan programs, including VET Student Loans and Australian Apprenticeship Support Loans (formerly Trade Support Loans), will be reformed in response to the Australian Universities Accord final report. Indexation of loans will be capped at whichever rate is the lowest of the Consumer Price Index (CPI) and the Wage Price Index (WPI) once legislation is passed (Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 21).
$55.6 million is provided over four years, commencing in 2024-25, for the new Building Women's Careers program, which aims to drive structural and cultural change in work and training environments. The program will fund a mixture of large-scale projects and smaller, place-based partnerships to improve women's access to flexible, safe and inclusive work and training opportunities in traditionally male-dominated industries. The Government will work in partnership with women's services, employers, unions and training providers across target industries including construction, clean energy, advanced manufacturing, and digital technology. DEWR has annual administered expenses of $50 million allocated over four years for the program, with an estimated $8 million provided in 2024-25. The program is also included in the cross-portfolio measure titled 'Future Made in Australia - Workforce and Trade Partnerships for Renewable Energy Superpower Industries' (Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, pp. 18-19 and 41; Budget paper no. 2: Budget measures, pp. 72-73).
$76.2 million is allocated over five years from 2023-24 (and $18.7 million per year ongoing) to implement a new voluntary prison to employment transition program for First Nations people aged 15 years and over who are incarcerated with a known release date or are on remand. The program will be progressively rolled out from 1 July 2025. The new program aims to support the economic security of First Nations people by providing pre-release and post-release support services to assist them to reintegrate into their communities and prepare to enter or re-enter the labour market, and will: introduce and support a greater diversity of service providers, including First Nations organisations that have strong local connections and capability to deliver trauma-informed and culturally safe mentoring and assistance to First Nations people; provide funding to support the National Indigenous Employment and Training Alliance to operate as a First Nations employment services peak body and help build the capacity of the Aboriginal community-controlled sector as they prepare for the new program; and establish a grant process to support small-scale prison-to-work projects that support job creation opportunities for First Nations participants. This program will replace the Time to Work Employment Service program.
These initiatives contribute to several socioeconomic targets under the National Agreement on Closing the Gap, including targets 6, 7, 8, 10 and 11. They align with the principles of Working future: the Australian Government's white paper on jobs and opportunities to work in partnership with First Nations people to generate local solutions to economic development. The cost of the measure will be met from savings identified in the Employment and Workplace Relations portfolio (Budget paper no. 2: Budget measures, pp. 93-94; Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, pp. 16 and 32).
$6.1 million additional funding is allocated in 2024-25 for the National Careers Institute (NCI) to continue its role in supporting Australians to access targeted careers information (Budget paper no. 2: Budget measures, p. 94). The Department of Employment and Workplace Relations (DEWR) annual administered expenses also include $1.548 million for the NCI and Ambassador (Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 41).
The 2024-25 budget invests $22.7 billion over the next decade to build a Future Made in Australia. The aim of the plan is to maximise the economic and industrial benefits of the net zero transformation and secure Australia's place in a changing global economic and strategic landscape (Budget paper no. 1: Budget strategy and outlook, p. 14). Investing in people and places is central to the plan. The budget includes investments in skills, training and education and provides support for communities and regions that are most impacted by the net zero transformation (A Future Made in Australia fact sheet, p. 6).
$399.1 million is allocated over five years from 2023-24 (and an additional $616.8 million from 2028-29 to 2034-35 and $93.4 million per year ongoing) in additional resourcing for the Net Zero Economy Authority (the Authority), DEWR, and the Fair Work Commission to promote orderly and positive economic transformation associated with decarbonisation to ensure Australia, its regions and workers realise the benefits of the net zero economy. Funding includes:
The lead entity for measure titled 'Net Zero Economy' is the Department of the Prime Minister and Cabinet, and DEWR is allocated $97.5 million over four years, with $9.6 million in 2024-25 (Budget paper no. 2: Budget measures, pp. 159-160; Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, pp. 19-20 and 28).
The Government will establish a new Commonwealth Prac Payment for students to help them manage the costs associated with undertaking a mandatory placement. As part of this measure $58.2 million is provided over four years for eligible VET students studying nursing and undertaking mandatory placements. These students will be able to access financial support over the course of their placements, which is intended to provide cost-of-living relief, reduce financial hardship and boost completion rates. The initiative is part of the Government response to the Australian Universities Accord final report (Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 22; Budget paper no. 2: Budget measures, p. 62).
The Government will provide $218.4 million over eight years from 2023-24 (and $1.3 million per year ongoing) to support a Future Made in Australia through the development of a skilled and diverse workforce and trade partnerships. Funding includes:
The allocation of funding to the Department of Employment and Workplace Relations (DEWR) for this measure is $66.7 million over four years, with $14.6 million provided in 2024-25, and builds on the and on Working future: the Australian Government's white paper on jobs and opportunities (Budget paper no. 2: Budget measures, p. 72-73).
The Housing Support cross-portfolio budget measure includes $88.8 million over three years from 2024-25 to support additional fee-free training places in courses relevant to the construction sector, and $1.8 million over two years from 2024-25 for DEWR to deliver streamlined skills assessments for migrants from countries with comparable training frameworks who wish to work in Australia's housing construction industry (Budget paper no. 2: Budget measures, pp. 74-75; Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 20).
An additional $9.5 million in 2024-25 is provided to support Jobs and Skills Australia (JSA) to continue to provide independent advice on current, emerging, and future workforce skills and training needs. This resourcing aims to support JSA to continue to collaborate with unions, employers, state and territory governments, and education and training providers on workplace planning, to address skills shortages in priority areas across the economy (Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 21).
$101.8 million is allocated over seven years from 2024-25 to continue to build the Australian industrial workforce required to support the delivery of Australia's conventionally-armed, nuclear-powered submarines. The allocation consists of $68.4 million over seven years from 2024-25 for initiatives delivered through the new Skills and Training Academy, and $33.5 million over six years from 2024-25 for initiatives to enhance domestic industry and workforce capacity. The Skills and Training Academy initiatives include:
The cost of this measure will be met from within the existing resourcing of the Department of Defence and the Australian Submarine Agency (Budget paper no. 2: Budget measures, pp. 82-83).
The Australian Government will provide funding of $2.5 billion (rounded) in 2024-25 to support state skills and workforce development services, including:
The National Skills Agreement (NSA) commenced on 1 January 2024, replacing the National Agreement for Skills and Workforce Development. Funding for the NSA includes National Partnership Payments for seven Specific Policy Initiatives: Closing the Gap, Ensuring Access to Foundational Skills Training, TAFE Centres of Excellence, National TAFE Network, Measures to Strengthen the VET Workforce, Enhanced VET Data and Evidence and Improved Completions - Especially for Priority Groups.
The allocations to the states and territories for 2024-25 are: New South Wales $750.3 million, Victoria $612.3 million, Queensland $498.0 million, Western Australia $266 million, South Australia $170.1 million, Tasmania $56.6 million, Australian Capital Territory $47.3 million, and Northern Territory $31.4 million (Budget paper no. 3: Federal financial relations, p. 52).
The funding of $108.2 million provided through National Partnership payments in 2024-25 comprises:
The state and territory allocations for the new agreements have not yet been determined (Budget paper no. 3: Federal financial relations, pp. 53-54).
Additionally, the budget includes funding of $2 million that was allocated in 2023-24 to the Queensland Government to support the Isaac Regional Council's initiative to establish a future Resources Centre of Excellence in Moranbah and for the North Bowen Basin Mines Rescue Station and Training Centre (Budget paper no. 3: Federal financial relations, p. 54).
The Australian Skills Quality Authority (ASQA) was established under the National Vocational Education and Training Regulator (NVETR) Act 2011 (NVR Act) on 1 July 2011, following the referral of powers by the majority of state and territory governments. ASQA regulates providers that deliver:
ASQA accredits VET courses to make sure nationally approved standards are met, based on established industry, enterprise, education, legislative or community need (Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 91).
In 2024-25, ASQA's key priorities include: implementing amendments to the NVETR Act 2011 that give ASQA greater powers to protect vulnerable students, take action against non-genuine providers, and ensure suitability at market entry; through its Integrity Unit, uplifting ASQA's investigation, enforcement and intelligence capability including multi-agency compliance operations; collaborating with the Department of Employment and Workplace Relations (DEWR) and stakeholders to prepare for the implementation of revised Standards for Registered Training Organisations (RTOs); responding to government policy objectives for VET including supporting a more integrated approach between higher education, VET, and migration systems; and providing its workforce with the right tools including by progressively implementing digital enhancements to improve our regulatory capacity, service delivery and effectiveness (Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 92).
ASQA estimates its total resourcing will be $65.986 million, which includes a departmental appropriation of $47.117 million for 2024-25 (Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 94).
In response to the Australian Universities Accord final report the Australian Government is strengthening connections between the VET and higher education sectors to ensure students are provided with pathways to study and employment and gain the skills needed by industry and the economy. $1.3 million is allocated over four years to ASQA, along with $14.6 million to DEWR ($15.9 million total funding), to help create a more joined-up tertiary education sector and lay the foundation for broader tertiary education reforms in the future. This includes immediate measures that focus on improving student experience and pathways through better credit recognition, enabling regulatory alignment and improving the evidence base of student movements between sectors through better data collection (Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 21-22).
This measure allocates $1.1 billion over five years from 2023-24 (and an additional $2.7 billion from 2028-29 to 2034-35) for the first stage of reforms to Australia's tertiary education system in response to the Australian Universities Accord final report. The aim of the reforms is to boost equity and access to higher education, progress tertiary harmonisation and support a target of 80 per cent of the working age population holding a tertiary qualification by 2050. This funding includes:
Details of other reforms that will be announced once final consultations with relevant stakeholders have been completed include the Australian Tertiary Education Commission, which is intended to be established by 1 July 2025, and will be responsible for tertiary education system stewardship, delivery of funding arrangements for higher education, ongoing tertiary harmonisation and data collection and reporting (Budget paper no. 2: Budget measures, pp. 62-64).
The Department of Employment and Workplace Relations (DEWR) is allocated $14 million in 2024-25 ($72.8 million in total over four years) for this measure (Budget paper no. 2: Budget measures, p. 62), and includes $4.056 million in 2026-27 and in 2027-28 ($8.112 million) under annual administered expenses for the Tertiary Harmonisation measure (Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 41).
$26.1 million is allocated over four years, with $25 million provided in 2024-25, for the Skills and Training portfolio to contribute to a strong and effective vocational education and training (VET) system, continue structural reforms, and maximise returns on previous skills and training investments and commitments. Funding includes:
A business case will also be progressed to develop a modern ICT solution for the assessment of trade skills for skilled migrants by Trades Recognition Australia. A modern ICT solution will make skilled workers more rapidly available to employers and support delivery of the government's migration and skilled workforce objectives. The cost of this measure will be partially met from savings identified in the Employment and Workplace Relations portfolio (Budget paper no. 2: Budget measures, p. 94).
The budget includes five new National Agreements that are associated with the following initiatives:
This budget measure allocates $33.5 million of existing resourcing from the Department of Defence and the Australian Submarine Agency over seven years from 2024-25 for the Skills and Training Academy, to be built in Osborne, South Australia, to deliver programs, train TAFE teachers, and co-design training programs with industry relevant to the nuclear-powered submarine enterprise (Budget paper no. 2: Budget measures, pp. 82-83). More information about this measure is available in the Industry section above.
$4.4 million is provided in 2024-25 to drive demand for vocational education and training (VET) including delivering strategic communications to increase the appeal of VET for students, parents and teachers, and extending community awareness of Fee-Free TAFE courses in areas of high skills needs which has ensured strong uptake of Fee-Free TAFE places to date. The cost of this measure will be partially met from savings identified in the Employment and Workplace Relations portfolio (Budget paper no. 2: Budget measures, p. 95; Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 28).
$30.2 million is allocated over five years from 2023-24, with nearly $6.9 million provided in 2024-25, to co-design and establish a network of Remote Training Hubs in partnership with Central Australian communities and the Northern Territory Government. This place-based initiative supports people in remote communities to access on-Country training that meets community needs and leads to local, sustainable jobs. The initiative is part of the Better, Safer Future for Central Australia plan, contributes to the socioeconomic targets under the National Agreement on Closing the Gap, and aligns with the principles of Working future: the Australian Government's white paper on jobs and opportunities to work in partnership with First Nations people to generate local solutions to economic development (Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, pp. 16 and 40).
Opportunities identified to review programs to ensure quality spending include $6.1 million over the forward estimates by ceasing the underused, offshore International Skills Training courses program and $4.7 million in 2023-24 by reducing the scope of the second stage of the Automatic Mutual Recognition of Occupational Registrations initiative (Portfolio budget statements 2024-25: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 22).
Prior year budget highlights can be accessed by clicking on the buttons below.
* A second budget was released for the 2022-23 financial year by the new government elected in May 2022.
NCVER (National Centre for Vocational Education Research) 2024, Budget highlights: Commonwealth 2024-25, VET Knowledge Bank, NCVER, Adelaide, <https://www.voced.edu.au/vet-knowledge-bank-policy-initiatives-budget-highlights-commonwealth-2024-25>.
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