Apprenticeships and traineeships

Apprentices and trainees payroll tax exemption

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. The expenditure on the exemption is estimated at $32.5 million for 2021-22 (Budget paper no. 3: Economic and fiscal outlook, pp. 341 and 342).

Apprenticeship and Traineeship Administration and Regulation

The Apprenticeship and Traineeship Administration and Regulation service provided by the Department of Training and Workforce Development includes registration of training contracts and administration of contract variations, educating participants on training contract and legislation requirements, dispute resolution and monitoring of legislative compliance. The service includes the cost of grants and administration associated with the Employer Incentive Scheme introduced in the 2019-20 budget. The net cost of service for 2022-23 is estimated at $53.803 million (Budget paper no. 2: Budget statements volume 1, p. 390).

Construction Training Fund (CTF) investment

Informed by ideas generated from the Perth and Regional Skills Summits, the budget supports a $14.3 million Construction Training Fund (CTF) investment that includes:

• $4.5 million for a new tool rebate to support apprentices and trainees to purchase trade-related tools and safety equipment. Eligible apprentices will be able to claim up to $500 each from the CTF for purchases made between 1 July 1 2022 and 30 June 2023.
• $5.1 million to support the introduction of a new apprenticeship pathway for the civil construction sector. The CTF is providing eligible employers with a wage gap subsidy to cover the difference in wages paid between the new apprenticeship and outgoing traineeship. The program will run over the next four years.
• A $1.3 million initiative to assist young people to gain the experience and skills they need to obtain a driver's licence for entry into a construction trade apprenticeship. The Skills Summits in 2021 identified access to a driver's licence as a common barrier to employment as an apprentice.
• An additional $1.6 million of incentives for employers and apprentices involved in rebuilding disaster-affected regions to support communities impacted by the Wooroloo bushfires and Cyclone Seroja. Under the scheme, employers can claim up to an additional $6000 from the CTF over two years and apprentices can receive up to $2000 over the same period.
• A further $1.9 million has been allocated to identify and promote training in trades with a declining number of workers through online resourcing for target employers, advertising and apprentice mentoring programs (Fact sheet: Investing in education and training, p. 2; Media statement 13 May 2022).

Employer Incentive Scheme

Over 2022-23 to 2025-26, it is estimated that $37.6 million will be spent on the Employer Incentive Scheme, which provides incentive payments for employers of apprentices and trainees (Budget paper no. 3: Economic and fiscal outlook, p. 218).

Support Scheme for School-Based Apprenticeships

The 2021-22 budget (p. 121) allocated $1.3 million over four years to establish a school-based apprenticeship support scheme for students identified as vulnerable and at risk of not completing training. $370 000 is provided for the scheme in 2022-23, with an additional $1.17 million allocated across the forward estimates (Budget paper no. 2: Budget statements volume 1, p. 379).

Employment

Collie Just Transition Plan - Workforce Support

Building on the Collie Just Transition Plan, the Government will spend $2 million over the forward estimates period on a workforce transition program, including the establishment of a full-time Collie Jobs and Skills Centre, which will assist workers with transitioning to new employment opportunities (Budget paper no. 3: Economic and fiscal outlook, p. 135).

Defence Industry White and Grey Collar Workforce

The Government has allocated $8.8 million over the forward estimates period to deliver a package of defence industry 'white and grey collar' initiatives and to create a pipeline of skilled workers (Budget paper no. 3: Economic and fiscal outlook, p. 135).

Defence Industry Veterans Employment Scheme

The administration of the Defence Industry Veterans Employment Scheme, announced in the 2021-22 budget (p. 202), has been transferred from the Department of Jobs, Tourism, Science and Innovation to the Department of Training and Workforce Development (Budget paper no. 2: Budget statements volume 1, p. 198).

Mature Aged Job Seekers and Ex-Offenders

As part of its commitment to alleviate skills shortages, a new $5.5 million program will provide expanded jobseeker support to 500 mature-age jobseekers and pilot support for 100 ex-offenders to help them into employment and support their safe transition back into the community. Expenditure has been reprioritised from within the Department of Training and Workforce Development's existing budget to support part or all of this initiative (Budget paper no. 3: Economic and fiscal outlook, pp. 132 and 135; Media statement 12 May 2022).

Industry

Building and Construction Industry Training Board - 2022-23 Operational Plan and New Initiatives

To align with the Building and Construction Industry Training Board's operational plan, and to reflect the implementation of additional initiatives to support the construction sector, expenditure will increase by $40.6 million over 2021-22 to 2025-26, funded by an increase in revenue due to strong activity in the construction and resources sectors. The additional support measures include subsidising the cost of equipment purchases for apprentices, and a driver's licence training initiative, to assist removing barriers to employment (Budget paper no. 3: Economic and fiscal outlook, p. 136).

WA Jobs Plan - Diversifying the Western Australian Economy

The budget includes a $1.3 billion additional investment to further drive jobs and economic diversification and support sectors of the economy most affected by the pandemic, including an extra $41.2 million to support the continued recovery of the international education sector (Budget paper no. 3: Economic and fiscal outlook, p. 96; Fact sheet: WA Jobs Plan: a strong economy, p. 4).

WA Jobs Plan for the Regions

The existing $50 million Just Transition Plan is allocated an additional $30 million to further support workers, businesses and communities through the transition from native forestry to softwood plantations. The Plan includes:

• $30 million for the Industry and Community Development Program to support businesses indirectly affected by the closure of the native forest industry
• $26.4 million for the Business Transition Program that provides grants to support regional native forestry businesses to transition out of the industry
• $19.3 million for the Workforce Transition Program to provide payments of up to $45 000 to eligible workers, and support for reskilling and retraining, so that workers can transition to other industries (Budget paper no. 3: Economic and fiscal outlook, p. 216; Media statement 13 May 2022).

National Agreements

The total Commonwealth Payments for specific purposes and National Partnership Payments to Western Australia (WA) for Skills and Workforce Development are estimated at $168.2 million for 2022-23.

National Skills and Workforce Development Specific Purpose Payment

WA has been allocated $168.2 million under the National Agreement for Skills and Workforce Development for 2022-23 (Budget paper no. 3: Economic and fiscal outlook, p. 353).

This Budget assumes that the ongoing and unconditional funding under the current National Agreement on Skills and Workforce Development (NASWD) continues over the forward estimates period. Commonwealth funding under the NASWD accounts for 23 per cent of the Department of Training and Workforce Development's total expenditure over this period (Budget paper no. 3: Economic and fiscal outlook, p. 60).

National Partnership Payments

• JobTrainer Fund - nil
• Skilling Australians Fund - nil
• Revitalising TAFE Campuses across Australia - nil (Budget paper no. 3: Economic and fiscal outlook, p. 353).

The budget papers also show $51.8 million was received from the JobTrainer Fund, $29.7 million from the Skilling Australians Fund, and $2 million from Revitalising TAFE Campuses across Australia in 2021-22 (Budget paper no. 3: Economic and fiscal outlook, p. 353).

Regulation

Regulatory Services to RTOs

The Training Accreditation Council (the Council) has the statutory responsibility for providing regulatory services to registered training organisations (RTOs) operating solely in WA. The Council is established under the Vocational Education and Training Act 1996 and is supported by the Department of Training and Workforce Development through the services of the Council Secretariat. Regulatory Services to RTOs include quality assurance and recognition of vocational education and training (VET) services. The net cost of services is estimated at $2.365 million for 2022-23 (Budget paper no. 2: Budget statements volume 1, p. 393).

Training providers and programs

Home Care Workforce Support Program

Under the State's agreement with the Commonwealth on the Home Care Workforce Support Program, the North Metropolitan TAFE will spend an additional $8.5 million over 2021-22 and 2022-23 to increase the size of the personal care workforce within the aged care sector by 1400 workers by July 2023 (Budget paper no. 3: Economic and fiscal outlook, p. 135).

Investment in the TAFE Sector

The Government is investing in the future capacity and capability of the TAFE sector through:

• $215.8 million capital works program to deliver state-of-the-art facilities, providing high-quality, industry-relevant training at colleges across the State
• $25 million investment in new, modern equipment
• $9.9 million investment (commencing from 2021-22, p. 120) to support TAFE lecturers to return to industry to update their knowledge and skills (Budget paper no. 2: Budget statements volume 1, pp. 386 and 394).

Keeping Training Fees Low

An additional $38.4 million will be provided to keep TAFE fees low and annual fee caps across 210 priority courses through the Lower fees, local skills initiative. This initiative has helped training enrolments grow to a record of more than 150 000 places and increased apprenticeships and traineeships by 31 per cent last year. To maintain VET fees at discounted levels, the Government will spend an additional $25.9 million in 2025-26, with fees to increase in line with the CPI from the 2026 training year (Budget paper no. 3: Economic and fiscal outlook, p. 134; Media statement 12 May 2022).

Regional TAFE International Student Strategy

The budget announces a new $2.4 million initiative to attract international students to live, work and study in regional WA to alleviate critical shortages being experienced by regional businesses in the aged and disability care, childcare, hospitality and tourism sectors. The Government will spend $1.5 million over 2022-23 and 2023-24 to commence a pilot program to attract international students to enrol in targeted courses at regional TAFE Colleges. Expenditure has been reprioritised from within the Department of Training and Workforce Development's existing budget to support part or all of this initiative (Budget paper no. 3: Economic and fiscal outlook, pp. 132, 135 and 218; Budget paper no. 2: Budget statements volume 1, p. 384).

Revisions to International Student Enrolment Forecasts

Reflecting the impact of COVID-19 related travel restrictions and reduced international student enrolments, spending on training delivery across the metropolitan TAFE Colleges has been revised down by $19.2 million over 2022-23 to 2024-25 (Budget paper no. 3: Economic and fiscal outlook, p. 135).

Training and Workforce Development services

The Education and Training portfolio delivers and regulates education for Western Australian students, and includes the Education, Training and Workforce Development, and TAFE Colleges agencies. The service summary for Training and Workforce Development provides an estimated total cost of services for 2022-23 of $749.295 million comprising:

• VET Workforce Planning and Policy Development - $20.004 million. The Department of Training and Workforce Development works closely with industry, the community and across Government in gathering and analysing workforce data and intelligence to identify the State's workforce development and training priorities. The Department develops policies and programs that promote the effective and efficient operation of the State's VET system. Policy and program development is aligned to the Department's strategic direction for workforce development and training including higher education and the school sector (Budget paper no. 2: Budget statements volume 1, p. 387).
• Jobs and Skills Centre Services provide education and training information, and career guidance to the Western Australian community, as well as employment, training and mentoring services to Aboriginal people and communities. Under the Government's election commitment, these services have largely been transitioned to Jobs and Skills Centres located at the TAFE Colleges. The net cost of service for 2022-23 is estimated at $22.724 million (Budget paper no. 2: Budget statements volume 1, p. 388).
• Skilled Migration, Including Overseas Qualification Assessment - $1.463 million. Skilled Migration, including Overseas Qualification Assessment assesses applications from intending skilled migrants to WA and assesses post-secondary qualifications gained overseas for Western Australian residents. The service aims to facilitate skilled migration to WA to supplement the local workforce and enable overseas-trained residents to access education, training and employment through recognition of overseas qualifications (Budget paper no. 2: Budget statements volume 1, p. 389).
• Apprenticeship and Traineeship Administration and Regulation - $53.803 million (Budget paper no. 2: Budget statements volume 1, p. 390).
• Procurement of Training - $421.511 million. This service 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. 391).
• Recruitment and Management of International Students - $8.214 million. This service involves the marketing of Western Australian TAFE Colleges and public schools offshore and onshore, and managing admissions, compliance and the welfare of international students according to relevant legislation (Budget paper no. 2: Budget statements volume 1, p. 392).
• Services to TAFE Colleges - $34.996 million. Support Services to TAFE Colleges include the supply, management and maintenance of information and communications technology (ICT), finance and human resource services. This 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 across the State (Budget paper no. 2: Budget statements volume 1, p. 392).
• $2.365 million for regulatory services to RTOs (Budget paper no. 2: Budget statements volume 1, p. 393).