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Policy initiatives > Budget highlights > Queensland 2021-22
The 2021-22 state budget was released by the Palaszczuk Labor Government on 15 June 2021. Budget highlights relating to skills and training are provided below. Direct links to relevant budget papers are provided for quick and easy access.
Most apprentice and trainee wages are exempt from payroll tax (estimated at $56 million for 2020-21). In addition, a rebate can be claimed that reduces the overall payroll tax liability of an employer. The budget allocates $31.2 million to extend the 50 per cent payroll tax rebate for apprentice and trainees for another 12 months to 30 June 2022 (Budget paper no. 2: Budget strategy and outlook, pp. 4, 245 and 248).
The User Choice - Apprentice and Trainee Training Subsidy program provides government funding towards the costs of training and assessment for eligible Queensland apprentices and trainees, or complementary pathways leading to apprenticeship outcomes. An estimate of $207 million is allocated for the subsidy in 2021-22 (Budget paper no. 2: Budget strategy and outlook, pp. 220-221).
The capital budget also includes $3 million in 2021-22 to complete the $23 million Renewable Energy Training Facility as part of the Queensland Government's total $17 million contribution to the project. The new facility will provide skills training for 750 apprentices a year, as well as assist an estimated 26 000 local licensed electricians with further training (Budget highlights, p. 7).
$2 million has also been allocated as part of the overall contribution of $20 million for the completion of the Hydrogen Training Centre of Excellence at Queensland Apprenticeship Centre at Beenleigh (Budget highlights, p. 7).
The Skilling Queenslanders for Work (SQW) program will be permanently funded, embedding the program into the core business of the state. $320 million over 4 years is allocated to extend the program in this budget, with $80 million per annum beyond the forward estimate period. Further information about SQW is included in the Training providers and programs section below (Budget paper no. 2: Budget strategy and outlook, pp. 4 and 24).
Up to $140 million in additional funding over 4 years will be provided for a revitalised Back to Work program. The Back to Work initiative provides subsidies to employers who hire unemployed jobseekers in specific regions, and an opportunity for jobseekers and those at risk of unemployment to upskill and retrain (Budget paper no. 2: Budget strategy and outlook, p. 4; Back to Work [website]).
The $3.34 billion Queensland Jobs Fund brings together the government's key investment attraction and industry development programs. The Fund incorporates a range of existing initiatives and commits additional funding for a number of new initiatives to strengthen supply chains, foster innovation, diversify regional economies, create jobs and boost income levels. The new initiatives include: $350 million in additional funding for the Industry Partnership Program, and a $2 billion Renewable Energy and Hydrogen Jobs Fund (Budget paper no. 2: Budget strategy and outlook, p. 4).
The 2021-22 Budget includes a $52.216 billion capital program over 4 years. The $14.688 billion capital program in 2021-22 will directly support around 46 500 jobs during the construction phase and support many more ongoing jobs through increased economic activity and connectivity (Budget paper no. 2: Budget strategy and outlook, p. 5).
$17.3 million has been allocated in 2021-22 to link industry and local high schools to provide students with pathways into rewarding careers and confidently transition into the world of work under the government's Local Schools Local Jobs commitment (Budget highlights, p. 6).
The total Commonwealth Payments for specific purposes and National Partnership Payments to Queensland for Skills and Workforce Development are estimated at $384.5 million for 2021-22.
Queensland has been allocated $320 million under the National Agreement for Skills and Workforce Development for 2021-22 (Budget paper no. 2: Budget strategy and outlook, p. 159).
For 2020-21 there was a $100.5 million matching investment as part of the initial national JobTrainer Fund ($201 million total fund value for Queensland). In the 2021-22 Federal Budget, the Australian Government announced an extension to the JobTrainer Fund over 2 years, with matched contributions expected from states and territories. This funding is not included in the 2021-22 budget, as it is subject to negotiation of agreement (Budget paper no. 2: Budget strategy and outlook, pp. 4 and 160).
The Skilling Queenslanders for Work (SQW) program will be permanently funded, embedding the program into the core business of the state. $320 million over 4 years is allocated to extend the program in this budget, with $80 million per annum beyond the forward estimate period. The SQW program will assist up to 15 000 disadvantaged Queenslanders each year to gain the skills qualifications, and experience needed to enter and stay in the workforce and includes new programs to provide foundational skills (e.g. literacy and numeracy). It will also deliver targeted assistance to workers aged over 25 who require upskilling or reskilling to re-engage with the labour market (Budget paper no. 2: Budget strategy and outlook, pp. 4 and 24).
$21 million is allocated for 2021-22 to continue providing Free TAFE and Free Apprenticeships to eligible Queenslanders aged under 25 (Queensland's COVID-19 Economic Recovery Plan: Budget update, p. 20).
Support will continue in 2021-22 through the Queensland Government's $100.5 million investment in the initial JobTrainer Fund in partnership with the Australian Government. This program is delivering no- or low-fee training places in accredited short courses and qualifications to support job seekers, school leavers and young people as Australia recovers from COVID-19 (Budget highlights, p. 7).
$100 million will be provided to help train and retrain Queenslanders for in-demand jobs, including a TAFE Priority Skills Fund, Pre-Apprenticeship Support and Social Enterprises Jobs Fund (Queensland's COVID-19 Economic Recovery Plan: Budget update, p. 20).
The Department of Employment, Small Business and Training budgeted appropriation revenue for 2021-22 is $1,245.822 million. The administered subsidies relating to skills and training are estimated at: $240.5 million for the Vocational Education and Training (VET) - Certificate 3 Guarantee Tuition Fee Subsidy; $207 million for the User Choice - Apprentice and Trainee Training Subsidy; $75 million for the VET - Higher Level Skills Tuition Fee Subsidy; and $3 million for the Travel and Accommodation Subsidy (Service delivery statements: Department of Employment, Small Business and Training, p. 7; Budget paper no. 2: Budget strategy and outlook, pp. 220-221).
$20.6 million over 5 years is allocated ($4.122 million per year) to continue the implementation of the International Education and Training Strategy to Advance Queensland 2016-2026. This funding will allow the government to continue to provide targeted support to the international education and training sector, which has been significantly impacted by COVID-19, and will support the industry to remain competitive when international borders reopen (Budget paper no. 2: Budget strategy and outlook, p. 31).
The 2021-22 capital program for the Department of Employment, Small Business and Training of $88.4 million includes $47.8 million of the $100 million Equipping TAFE for Our Future program. The program seeks to build on the outcomes of the Advancing our Training Infrastructure commitment, introduced to support the training requirements of emerging industries and strengthen the productivity of existing industries as Queensland transitions from the impacts of COVID-19. The capital program also includes: $5 million of capital grants for construction of a Renewable Energy Training Facility, the second stage of the Queensland Apprenticeship Centre at Beenleigh, incorporating a Hydrogen Training Centre of Excellence; $7.5 million for the Revitalising TAFE campuses across Australia initiative, jointly funded with the Australian Government; and $28.2 million for the Annual Training Infrastructure Program to renew and revitalise training infrastructure across the state (Budget paper no. 3: Capital statement, p. 51).
Under the Local Schools Local Jobs 'New skills development and training facilities' and 'Upgrade skills development and training facilities' budget measures, $45 million is provided to build and upgrade training facilities in schools across the state, including in Queensland's regions (Queensland's COVID-19 Economic Recovery Plan: Budget update, p. 20; Budget paper no. 3: Capital statement, pp. 37-38).
Prior year budget highlights can be accessed by clicking on the buttons below.
NCVER (National Centre for Vocational Education Research) 2021, Budget highlights: Queensland 2021-22, VET Knowledge Bank, NCVER, Adelaide, <https://www.voced.edu.au/vet-knowledge-bank-policy-initiatives-budget-highlights-queensland-2021-22>.
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