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 $40.6 million for 2022-23 (Budget paper no. 3: Economic and fiscal outlook, pp. 329 and 330).

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 2023-24 is estimated at $59.530 million (Budget paper no. 2: Budget statements volume 1, p. 376).

Building and Construction Industry Training Board new initiatives

The new initiatives include the introduction of a completion bonus of $2000 and tool and safety equipment rebate of up to $500 to encourage construction apprentices to complete their qualifications ($4.2 million), and an increase in the base employer grant for all third and fourth year apprentices from $10 000 to $12 000 ($26.9 million) (Budget paper no. 3: Economic and fiscal outlook, pp. 121-122; Media statement 11 May 2023).

Group Training Organisation Wages subsidy

The Group Training Organisation (GTO) Wage Subsidy will be expanded to include residential and commercial construction sector apprentices (Budget overview, p. 10; Budget paper no. 2: Budget statements volume 1, p. 371).

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. $382 000 is provided for the scheme in 2022-23, with an additional $394 000 allocated each year across the forward estimates (Budget paper no. 2: Budget statements volume 1, p. 365).

Travel and Accommodation for Regional Students

The travel and accommodation allowances for apprentices and trainees who travel long distances for off-the-job training will be increased, at a cost of $2.5 million over 2023-24 and 2024-25 (Budget paper no. 3: Economic and fiscal outlook, p. 121).

Employment

Employment and training support - program extension

An investment of $1.6 million over two years will extend a program across the State providing targeted and practical employment and training support for Aboriginal people for a further two years, starting 1 January 2024. Support provided through the program includes targeted services to reduce barriers to training and employment. This may include assisting participants to get industry tickets or drivers licences and providing work-related equipment, clothing and PPE (Media statement 11 May 2023; Budget paper no. 2: Budget statements volume 1, p. 371).

Jobs and Skills Centre Services

Jobs and Skills Centres 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 2023-24 is estimated at $18.578 million (Budget paper no. 2: Budget statements volume 1, pp. 374-375).

Industry

Building and Construction Industry Training Board 2023-24 operational plan and new initiatives

Consistent with its operational plan, the Building and Construction Industry Training Board will increase spending by $53.3 million over 2022-23 to 2026-27 on initiatives to support training in the construction sector. New initiatives include the introduction of a completion bonus and tool allowance to encourage construction apprentices to complete their qualifications ($4.2 million), and an increase in the base employer grant for all third and fourth year apprentices from $10 000 to $12 000 ($26.9 million) (Budget paper no. 3: Economic and fiscal outlook, pp. 121-122).

WA Jobs Plan - Economic Diversification and Support

The 2023-24 Budget provides an additional $463 million across various initiatives focused on diversifying the Western Australian economy. Support for economic diversification includes further investments in road and port infrastructure, a $40 million Sustainable Geoscience Investments package to accelerate critical minerals discoveries, a $35 million top-up of the Industrial Land Development Fund to support private sector investment, and a host of measures to support the State's invest and trade initiatives, secure additional tourism and business events, and support the continued recovery of the international education sector.

The initiative also includes the increase in the base employer grant under the Construction Industry Fund, the completion bonus and tool allowance; $11.5 million to provide visa subsidies of up to $10 000 to attract skilled migrants to the construction sector; scholarships for women in non-traditional occupations; expanding the Heavy Vehicle Driver training program to the Kimberley and Pilbara; additional support for regional Nursing Diploma students; increasing the travel allowance for regional apprentices; and extending support for Aboriginal jobseekers (Budget paper no. 3: Economic and fiscal outlook, p. 90; Media statement 11 May 2023).

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 $194.1 million for 2023-24.

National Skills and Workforce Development Specific Purpose Payment

WA has been allocated $178.9 million under the National Agreement for Skills and Workforce Development for 2023-24 (Budget paper no. 3: Economic and fiscal outlook, p. 341).

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, and also includes additional funding under a 12-month Skills Agreement for 2023. Commonwealth funding under the NASWD accounts for 22 per cent of the Department of Training and Workforce Development's total expenditure over 2023-24 to 2026-27 (Budget paper no. 3: Economic and fiscal outlook, p. 54).

National Agreement on Skills and Workforce Development revenue update

The Department of Training and Workforce Development will spend an additional $22.5 million over 2023-24 to 2025-26 on services supporting training delivery, reflecting an update to Commonwealth funding estimates under the National Agreement on Skills and Workforce Development (Budget paper no. 3: Economic and fiscal outlook, p. 120).

National Partnership Payments

• Interim National Skills Agreement - $15.2 million in 2023-24 (Budget paper no. 3: Economic and fiscal outlook, p. 341).

A 12-month National Skills Agreement (signed in November 2022) secured an additional $52.7 million in recurrent funding from the Commonwealth to enable Fee-Free training across 58 qualifications and 56 skill sets, as well as $8.2 million in capital funding for three projects in Western Australia (Budget paper no. 3: Economic and fiscal outlook, p. 80).

Training providers and programs

Heavy Vehicle Driver Training Program Expansion

In response to ongoing demand for heavy vehicle drivers, $2.3 million is allocated from 2023-24 to 2026-27, (and a further $333,000 beyond the forward estimates), to expand the Heavy Vehicle Driver Training Program to the Kimberley and Pilbara. The expansion will fund the training of 350 drivers over four years. A further $820,000 in asset investment in 2023-24 has been allocated to purchase two vehicles to support this expansion (Budget paper no. 3: Economic and fiscal outlook, p. 121; Budget paper no. 2: Budget statements volume 1, pp. 372, 380).

TAFE Colleges Temporary Regional Attraction and Retention Allowance

To support training delivery in targeted regional locations, $2.9 million will be provided in 2023 on a temporary regional attraction and retention incentive at hard to staff locations within North Regional TAFE and Central Regional TAFE (Budget paper no. 3: Economic and fiscal outlook, p. 121).

TAFE Scholarships for Women in Non-traditional Occupations

To increase female workforce participation in traditionally male-orientated sectors, $2.6 million (and a further $400,000 beyond the forward estimates) is allocated for a scholarship program and associated supports for women in non-traditional trade and technical occupations (capped at 400 places) (Budget paper no. 3: Economic and fiscal outlook, p. 120).

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 2023-24 of $833.384 million comprising:

• VET Workforce Planning and Policy Development - $21.482 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, pp. 373-374).
• Jobs and Skills Centre - the net cost of service for 2023-24 is estimated at $18.578 million (Budget paper no. 2: Budget statements volume 1, pp. 374-375).
• Skilled Migration, Including Overseas Qualification Assessment - $5.107 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, pp. 375-376).
• Apprenticeship and Traineeship Administration and Regulation - $59.530 million (Budget paper no. 2: Budget statements volume 1, p. 376).
• Procurement of Training - $454.549 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. 377).
• Recruitment and Management of International Students - $9.468 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. 378).
• Services to TAFE Colleges - $45.113 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, pp. 378-379).
• $2.679 million for regulatory services to RTOs (Budget paper no. 2: Budget statements volume 1, p. 379).

Work Placement Stipend and Travel Assistance for Regional Diploma of Nursing Students

To ease cost pressures for regional students undertaking a Diploma of Nursing, $2.9 million will be spent over 2023-24 to 2025-26 to introduce a stipend of $350 per week and a travel allowance for students who need to travel to complete their practical work placements (Budget paper no. 3: Economic and fiscal outlook, p. 120).