Apprenticeships and traineeshipsSkill and Employment Generation program'Outcome 3: Sustainable Transport systems and solutions that enable economic activity' of the Transport cluster includes $9.5 million ($11.7million in recurrent expenses and $2.6 million capital over two years) for the Skill and Employment Generation program to significantly increase the apprenticeship intake for trade skills across road and rail industry sectors, enhancing the graduate entry program and expansion of the Rail Skills Centre (Budget paper no. 2: Outcomes statement, p. 8-12).Career pathways for young people and social housing tenantsThe Planning, Industry and Environment Cluster 'Outcome 3: Maximise community benefit from government land and property' includes $20 million ($60 million recurrent expenses over three years) for 300 new housing sector pre-apprenticeships, apprenticeships and cadetships to provide career pathways for young people and social housing tenants (Budget paper no. 2: Outcomes statement, p. 4-13).Payroll tax exemption/rebateA full exemption/rebate is provided for wages paid to approved apprentices and for new trainees under the Apprenticeship and Traineeship Act 2001 and those employed by approved non-profit group training organisations. The estimated payroll tax expenditure for the two exemption/rebates is estimated at $68 million for wages paid to apprentices and $36 million for trainees. The rebate of $100 for vehicle registration given to first and second year apprentices registered with the NSW Department of Education is also included in the budget under minor tax expenditures of less $1 million (Budget paper no. 1: Budget statement, p. A2-8). EmploymentSkilling for Recovery programThe delivery of stimulus measures has included the Skilling for Recovery program, which is providing access to training to reskill for jobseekers and entry to the workforce for school leavers. The program is funded by the $318.6 million over two years (2020-21 and 2021-22) JobTrainer co-investment by the Commonwealth and the NSW government. More than 100 000 training places will be offered under this measure, with 70 305 enrolments as at 31 May 2021 (Budget overview, p. 10; Budget paper no. 2: Outcomes statement, p. 2-10).Roads to Home Program$1.5 million ($34.1 million recurrent expenses over three years) has been allocated to expand the Roads to Home Program, which will provide planning and infrastructure upgrades to up to 10 additional Aboriginal communities. This brings the Government's commitment to the Roads to Home Program to $108.9 million since 2019-20 for up to 31 Aboriginal communities (Budget speech, p. 11; Budget paper no. 2: Outcomes statement, p. 4-13). IndustryInfrastructure programThe 2021-22 Budget provides for a new record $108.5 billion infrastructure commitment over four years to drive economic growth, boost productive capacity and enable innovation. The allocation includes $71.5 billion for road and rail projects, $10.8 billion for hospitals and health facilities, and $8.5 billion for schools and education facilities (Budget paper no. 3: Infrastructure statement, p. 1-1).Essential EnergyEssential Energy is a NSW Government-owned corporation, with responsibility for building, operating and maintaining Australia's largest electricity network. Over 2019-20 and 2020-21, 58 apprentices and 26 trainees were recruited across various disciplines, including electrical technicians, asset inspections and other field operations. In 2021 the inaugural Aboriginal and Torres Strait Islander trainees will complete their apprenticeship and become trade qualified. In 2022 an additional 43 trainees and apprentices will commence with the organisation (Budget paper no. 1: Budget statement, p. 7-4).Investment NSW$416.1 million ($1 billion recurrent expenses and $14.8 million capital expenditure over four years) is allocated for Investment NSW, created on 29 March 2021, to drive local and international investment and create jobs for NSW including:$35 million to implement initiatives under the Entrepreneurship and Innovation Ecosystem government action plan to foster originality, design and investment while creating sustainable jobs in targeted sectors, precincts and regional NSW$11 million ($36 million recurrent expenses over four years) for two research initiatives aligned with the State's 2021 Accelerating Research and Development Action Plan which are: Emerging Industry Infrastructure Fund to encourage co-investment in targeted industries to develop capability and attract global skills; and the Bushfire Response Research and Development Mission (Budget paper no. 2: Outcomes statement, p. 5-3). National AgreementsIn 2021-22, the Australian Government may provide estimated funding of $640 million to support the State's and skills and workforce development services through the National Skills and Workforce Development Specific Purpose Payment (SPP) and National Partnership and Project payments.National Skills and Workforce Development Specific Purpose PaymentNSW estimates $499 million will be received for the National Skills and Workforce Development Specific Purposes Payment (SPP) in 2020-21 (Budget paper no. 1: Budget statement, p. 4-15).National Partnership PaymentsThe Australian Government budget estimates in 2021-22 NSW may receive:JobTrainer Fund - $95.5 millionRevitalising TAFE campuses across Australia - $5 millionSkilling Australians Fund - $40.2 million (Australian Government Budget paper no. 3: Federal Financial Relations, p. 43). Training providers and programsSkilled and employable workforce investmentsUnder 'Outcome 3: Skilled and employable workforce' of the Education cluster, the NSW Department of Education administers vocational education and training (VET) by managing the Smart and Skilled contestable training market, including the apprenticeship and traineeship system. The Department also provides direct funding to TAFE NSW, the State's public provider of VET. The outcome has estimated $2.6 billion in recurrent expenses and $258.6 million in capital expenditure allocated in the 2021-22 budget (Budget paper no. 2: Outcomes statement, pp. 2-10-2-11).Skilling for Recovery - JobTrainer and Regional VET Pathways programThere will be continued investment of $318.6 million recurrent expenses over two years for Skilling for Recovery, an ongoing, key component of the State's COVID-19 Recovery Plan to help job seekers retrain or upskill, and support school leavers to enter the workforce for the first time. The NSW Government has committed almost $160 million to match Commonwealth JobTrainer funding and offer more than 100 000 fee-free training places, with 70,305 enrolments as at 31 May 2021. Skilling for Recovery is also funding an extension of the Regional VET Pathways program which supports at-risk youth to re-engage in education, training or transition to employment (Budget paper no. 2: Outcomes statement, pp. 2-10-2-11).Gonski Shergold review response$24.6 million in 2021-22, including $13.2 million capital expenditure, to support the implementation of recommendations in the Gonski Shergold Review of the NSW VET sector. This funding supports establishing pilot sites for the Institute of Applied Technology at Meadowbank and Kingswood and a pilot for Careers NSW, with a full rollout expected in mid-2022. The NSW Government accepted all five recommendations from the Review - establishing Careers NSW, establishing the NSW Institute of Applied Technology, advocating for expanded access to VET student loans, improving vocational education available in high schools and consulting with industry experts on VET course curriculums (Budget paper no. 2: Outcomes statement, pp. 2-10-2-11).Education Pathways Pilot Program$5.2 million in 2021-22 to continue the Education Pathways Pilot Program (EPPP) to enhance uptake of vocational career options and improve job-readiness of secondary school students (Budget paper no. 2: Outcomes statement, pp. 2-10-2-11).Information and communication technology programs$19 million investment in 2021-22 into information and communication technology programs across the state in line with TAFE's ongoing modernisation program to support improved teaching delivery and student experience (Budget paper no. 2: Outcomes statement, pp. 2-10-2-11).Under cover learning areas$5.9 million in 2021-22 for TAFE to develop undercover learning areas to support training delivered externally or at height, such as carpentry (Budget paper no. 2: Outcomes statement, pp. 2-10-2-11).Major concessions related to trainingThe estimated cost of Education major concessions for 2021-22 are Smart and Skilled - VET concessions and exemptions ($95 million), Skilling for Recovery - Full qualification fee free training places ($16 million) and Skilling for Recovery - Additional fee gap on existing full qualification training places ($46 million) (Budget paper no. 1: Budget statement, p. A2-17-A2-18).TAFE NSW fundingThe TAFE Commission (TAFE NSW) expenses for 2021-22 are estimated at $1,961.5 million and $251.7 million capital expenditure (Budget paper no. 4: Agency financial statements, p. 2-1). Budget highlights archive Prior year budget highlights can be accessed by clicking on the buttons below. 2018-192019-202020-212021-22 How to cite this pageNCVER (National Centre for Vocational Education Research) 2021, Budget highlights: New South Wales, VET Knowledge Bank, NCVER, Adelaide, <https://www.voced.edu.au/vet-knowledge-bank-policy-initiatives-budget-highlights-new-south-wales-2020-21>. Providing feedback This page is a product in the VET Knowledge Bank, a living resource that NCVER continues to develop and update on an ongoing basis. We value your feedback and welcome comments and suggestions.