flexible_page:1212541
Policy initiatives > Budget highlights > Western Australia 2020-21
The 2020-21 state budget was released by the McGowan Labor Government on 8 October 2020. Budget highlights relating to skills and training are provided below. Direct links to relevant budget papers are provided for quick and easy access.
The Western Australian (WA) budget is typically delivered in May. The 2020-21 budget was delayed until October due to the coronavirus (COVID -19) pandemic and incorporates the initiatives that form the WA Recovery Plan. The plan aims to help drive economic and social recovery from the impacts of COVID-19 and create a pipeline of jobs for Western Australians, and is fully funded in this budget.
$42.104 million is allocated for Apprenticeship and Traineeship Administration and Regulation, including registration of training contracts and administration of contract variations, educating participants on training contract and legislation requirements, dispute resolution and monitoring of legislative compliance, and also includes the cost of grants and administration associated with the Employer Incentive Scheme (Budget paper no. 2: Budget statements volume 1, p. 395).
As part of the WA Recovery Plan, a financial incentive has been introduced from 1 July 2020 to encourage employers to re-engage displaced apprentices and trainees. The Employer Incentive for Re-Engaging Displaced Apprentices and Trainees is estimated at $4.842 million for 2020-21. Eligible employers receive $6000 per apprentice and $3000 per trainee whose training was cancelled or terminated and are now re-engaged by a new employer (Budget paper no. 2: Budget statements volume 1, pp. 388-389).
The WA Recovery Plan also includes Fee Waivers for Displaced Apprentices and Trainees with $1.970 million allocated for 2020-21. For eligible apprentices and trainees displaced between 1 March 2020 and 31 December 2020 there will be no course and resource fees for any units they commence for up to six months (Budget paper no. 2: Budget statements volume 1, p. 388; Media statements, 5 June 2020).
To increase trade workers in the defence industry, an incentive has been introduced from 1 October 2020 with the aim of encouraging defence employers to employ apprentices in key trades. Estimated at $17.196 million over four years with $4.531 million allocated in 2020-21, the Defence Industry Workforce Initiatives will build a pipeline of skilled workers in Western Australia to support additional vessel builds anticipated for the State. The package also includes a range of initiatives to boost the uptake of women, veterans and young people in the defence industry (Budget paper no. 2: Budget statements volume 1, pp. 388-389).
The wages of all apprentices who are undertaking training under an approved training contract are exempt from payroll tax. The payroll tax exemption for new employee trainees earning up to $100 000 per annum will continue to apply for the nominal duration of training contracts that were registered with the Department of Training and Workforce Development before 1 July 2019 (Budget paper no. 3: Economic and fiscal outlook, p. 268).
$18.130 million in 2020-21 and $6.870 million in 2021-22 has been allocated for Recovery Skillsets to Engage Displaced Workers and Youth. The 'Free TAFE Short Courses' that have been developed in consultation with industry will provide a launch-pad for students to up-skill for new jobs and provide pathways to full qualifications. The initial list of 15 short courses will be available to around 13,500 Western Australians and includes courses in hospitality, logistics, cyber security, agriculture, civil construction and small business. Many of the short courses will have built-in foundation digital skills and literacy and numeracy training (Budget paper no. 2: Budget statements volume 1, p. 388; Media statements, 2 July 2020).
Two new initiatives, the 'Lower Fees, Local Skills Initiative' and 'National Disability Insurance Scheme (NDIS) Job Matching Service', have $25.413 million funding allocated for 2020-21. The $53.5 million 'lower fees, local skills' policy was announced in October 2019 and commenced on 1 January 2020 to provide 50 per cent fee reductions for 34 high priority qualifications targeted to align with emerging skills shortages. The National Disability Insurance Scheme (NDIS) Job Matching Service was announced in February 2020, and will work closely with the training sector, including Jobs and Skills Centres and Commonwealth employment services, to help NDIS providers fill current and future vacancies. Job seekers interested in working in the disability sector will be connected with vocational education and training (VET) options, and the job matching service will connect job seekers to NDIS service providers following graduation (Budget paper no. 2: Budget statements volume 1, p. 388; Media statements 14 October2019; Media statements 17 February 2020).
The 'Expansion of the Lower Fees, Local Skills Initiative' is estimated at $22.628 million in 2020-21 and enhances the Lower Fees, Local Skills initiative announced in October 2019. As part of the strategy to combat the economic impacts of COVID-19, fees for 39 courses were reduced by up to 72 per cent taking the total number of courses to 73. Free training has been made available for short courses in infection control and other critical areas, and also for a range of short courses for displaced workers including women and young people. Commonwealth funding available under the JobTrainer Fund National Partnership Agreement will further complement the initiative (Budget paper no. 2: Budget statements volume 1, pp. 338-389).
The Asset Investment Program (AIP) is allocated $27.1 billion over the next four years. This includes the infrastructure component of the WA Recovery Plan, which comprises hundreds of small to medium-sized projects across the State aimed at generating activity and supporting jobs (Budget paper no. 3: Economic and fiscal outlook, p. 133).
The WA Recovery Plan includes a significant infrastructure component, with an estimated additional investment of $2.2 billion over the forward estimates period. The spending is across the entire State and across all areas of service delivery including schools, TAFEs, hospitals, roads, national parks, and other community facilities (Budget paper no. 3: Economic and fiscal outlook, p. 135).
As part of the $5.5 billion WA Recovery Plan, over $900 million will be spent on approximately 200 projects in regional areas across Western Australia. This is in addition to State-wide initiatives such as the $2,500 Small Business and Charity Tariff Offset, the payroll tax waiver for the four months to June 2020, and $17,500 grants to small and medium sized payroll tax paying businesses (Budget paper no. 3: Economic and fiscal outlook, p. 165).
To stimulate the Western Australian economy and support construction jobs, $223 million will be spent on priority projects, funded by contributions of $176 million from the Commonwealth Infrastructure Stimulus Package and $47 million of reprioritised funding from the State Government (captured in the WA Recovery Plan) (Budget paper no. 3: Economic and fiscal outlook, p. 154).
Investment in roads and public transport totals $3.3 billion in 2020-21 and $11.7 billion over the four years to 2023-24. This investment incorporates the Government's METRONET program and new roads spending. In total, $5.7 billion is allocated for METRONET projects over the forward estimates period (Budget paper no. 3: Economic and fiscal outlook, p. 135).
Over the next two years, the Government will spend an additional $23 million on support for the disability sector to successfully transition to the NDIS, including on workforce development, quality and safeguarding responsibilities, and behaviour support. Funding will support the sector to remain sustainable while continuing to deliver quality services to people with disability in Western Australia following the State's transition to the NDIS (Budget paper no. 3: Economic and fiscal outlook, p. 115).
Primary Industries and Regional Development notes the COVID-19 travel restrictions highlighted the State's reliance on overseas workers and the need to address these critical shortages, as well as the importance of long-term partnerships with the Department of Training and Workforce Development and Department of Education to build a local workforce and address youth unemployment and industry labour needs (Budget paper no. 2: Budget statements volume 1, p. 226).
The Western Australian Industry Participation Strategy (WAIPS) is designed to ensure that Western Australian businesses get a greater share of contracts to supply goods, services and work to Government. The application of WAIPS by agencies from 1 October 2018 has led to the creation of over 21 000 jobs and 1,300 apprenticeships and traineeships (Budget paper no. 2: Budget statements volume 1, p. 206).
The total Commonwealth Payments for specific purposes and National Partnership Payments to Western Australia for Skills and Workforce Development are estimated at $248.6 million for 2020-21 (Budget paper no. 3: Economic and fiscal outlook, p. 279).
WA has been allocated $159.1 million under the National Agreement for Skills and Workforce Development for 2021-22 (Budget paper no. 3: Economic and fiscal outlook, p. 279).
This Budget includes Commonwealth funding over 2020-21 to 2023-24 under the current National Agreement on Skills and Workforce Development (NASWD). However, following negotiations between Commonwealth, State and Territory Governments, all jurisdictions have now signed a Heads of Agreement for Skills Reform by August 2020, which sets out broad principles for a new National Skills Agreement to be finalised by August 2021 and replace the NASWD from 2022 (Budget paper no. 3: Economic and fiscal outlook, pp. 57 and 77).
As a result of lower than forecast growth in apprenticeship and traineeship commencements, partly due to the onset of COVID-19, the expenditure of the Department of Training and Workforce Development in 2019-20 on training delivery in scope of the National Partnership on the Skilling Australians Fund (NPSAF) was revised down by $9 million (Budget paper no. 3: Economic and fiscal outlook, p. 105).
The Training Accreditation Council (TAC) has the statutory responsibility for providing regulatory services to Registered Training Organisations (RTOs) operating solely in Western Australia. Regulatory Services to RTOs include quality assurance and recognition of VET services, and are estimated at $2.403 million (net) for 2020 (Budget paper no. 2: Budget statements volume 1, p. 399).
In response to the impact of the COVID-19 pandemic, the State Government approved the TAC to provide regulatory fee relief for TAC regulated RTOs and accredited course owners from 1 May 2020 to 31 October 2020. Recurrent spending changes impacting the Income Statement for Training and Workforce Development since the presentation of the 2019-20 budget include a $66 000 reduction in the 2020-21 estimate due to the Training Accreditation Council Fee Assistance initiative (Budget paper no. 2: Budget statements volume 1, p. 388; Regulatory fee relief for RTOs and accredited course owners).
A Government review of skills, training and workforce development was conducted, resulting in 46 recommendations that focus on creating new futures for recently displaced workers, ensuring training integrates new industry technologies, aligning training to labour market opportunities, and ensuring training is accessible to all. Implementation of the recommendations is being advanced (Budget paper no. 2: Budget statements volume 1, p. 389).
$324.276 million is estimated in 2020-21 for Procurement of Training, which comprises the purchasing of training delivery services from the TAFE Colleges and private training providers in accordance with the State's priorities and the State Training Plan (Budget paper no. 2: Budget statements volume 1, p. 396).
The $35.060 million for Support Services to TAFE Colleges includes the supply, management and maintenance of information and communications technology (ICT), finance and human resource services, and also incorporates infrastructure management for TAFE Colleges, including maintenance, administration and strategic development of land and buildings used to deliver publicly-funded training in campuses (Budget paper no. 2: Budget statements volume 1, p. 398).
The Department of Training and Workforce Development has a planned AIP of $326.108 million across the forward estimates, including actual expenditure for works in progress and completed work. There are three works in progress ($23.57 million in 2020-21 and $133.679 million in total) and one completed work ($12.917 million). The program has eight new works ($9.642 million in 2020-21 and $12.142 million in total) and fourteen projects that support the WA Recovery Plan ($92 million in 2020-21 and $167.37 million in total). The projects are to upgrade existing TAFE infrastructure across regional and metropolitan Western Australia and include new trade training centres, new classrooms, specialist training spaces and upgrades to existing campuses. In 2020-21 the program is funded by Capital Appropriation ($85.47 million), Commonwealth Grants ($17.3 million), drawndowns from Royalties for Regions Fund ($10 million), other grants and subsidies ($3 million) and internal funds and balances ($1.77 million) (Budget paper no. 2: Budget statements volume 1, pp. 389 and 400-402).
$6 million is allocated in 2020-21 for Critical COVID-19 Related Skill Sets including the Commonwealth Agreement on the National Infection Control Training Fund. In response to the COVID-19 pandemic, skill sets have been developed to support critical and immediate workforce needs in a number of industries including aged care, disability services, small business, retail, food handling and transport and logistics, ensuring that businesses can reopen and workers can operate safely in a COVID-19 context. This program comprises five national skill sets and two State-developed skill sets and are fee free for students. Students undertaking these skill sets cannot be charged course, resource or discretionary fees and will be funded from 1 July 2020 until 30 June 2021, unless funding is fully subscribed prior to this time (Budget paper no. 2: Budget statements volume 1, p. 388; Business rules for private training providers: critical COVID-19 skill sets).
With continuing high demand for VET in schools, the Department of Education is working closely with the Department of Training and Workforce Development to improve the quality of training in schools and strengthen the focus on supporting future job prospects for students. This includes implementing recommendations from the Review of Skills, Training and Workforce Development. This will help prepare students to take up jobs in areas of high demand and ensure a pipeline of skilled workers across priority industries (Budget paper no. 2: Budget statements volume 1, p. 369).
The Kimberley Juvenile Justice Strategy is a targeted approach to addressing the significant over-representation of Aboriginal young people in the justice system through the establishment of night patrols, safe place activities, a vocational industry skills program and Aboriginal Legal Service (ALS) support for young people. Funding of $2.124 million is allocated in the Department of Justice budget and $1.219 million in the Department of Training and Workforce Development for 2020-21 (Budget paper no. 2: Budget statements volume 2, pp. 435-436; Budget paper no. 2: Budget statements volume 1, p. 388).
$0.1 million is allocated in the Department of Communities budget for a program to support women who are residing at family and domestic violence (FDV) refuges to gain employment skills, access career training or retraining and attend a range of workshops and short courses to support their pathways to employment (Budget paper no. 2: Budget statements volume 2, p. 519).
As a result of COVID-19, enrolment numbers for international students in TAFE Colleges are anticipated to decline. A recovery strategy to attract international students when borders open is being developed. The Revision (reduction) to International Student Training Activity Estimates is $1.23 million in 2020-21, and the Freeze 2021 TAFE Fees for International Students $62 000. Financial Support for International Students in Crisis During COVID-19 is estimated at $415 000 for 2019-20 (Budget paper no. 2: Budget statements volume 1, pp. 388-389).
In 2019, the number of international student enrolments in Western Australia grew by four per cent. The COVID-19 pandemic significantly disrupted this trend and caused financial difficulties for many students and education providers. As a WA Recovery Plan initiative, the Department of Jobs, Tourism, Science and Innovation has established the International Education Advisory Group to address the impacts of the COVID-19 pandemic on the sector and develop a plan to guide its recovery and renewal. The plan will articulate strategies and initiatives to support the sector to reposition, recover and achieve long-term sustainability (Budget paper no. 2: Budget statements volume 1, p. 206).
Prior year budget highlights can be accessed by clicking on the buttons below.
NCVER (National Centre for Vocational Education Research) 2020, Budget highlights: Western Australia, VET Knowledge Bank, NCVER, Adelaide, <https://www.voced.edu.au/vet-knowledge-bank-policy-initiatives-budget-highlights-western-australia-2020-21>.
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.