Federal budget 2022: Tradies and TAFE get $1 billion apprentices boost

More young Aussies will be encouraged to become tradies as part of a billion-dollar push in Tuesday’s federal budget.

More young Aussies will be encouraged to become tradies as part of a billion-dollar push in Tuesday’s federal budget.

Treasurer Jim Chalmers said Labor was seeking to address a long-term decline in trade apprenticeship numbers, adding skills were central to building a “stronger economy” that is “more resilient, more inclusive, more modern”.

“In 2012, more than 57,000 Australians completed a trade apprenticeship,” Dr Chalmers said in his budget speech. “By 2021, that number had dropped by more than 20,000.”

Under the National Skills Agreement — a 50-50, one-year funding arrangement — the federal government along with the states and territories will invest $1.1 billion in fee-free TAFE and vocational education places.

The government wants to boost tradie numbers. Picture: Dan Peled/NCA NewsWire

That will be made up of 60,000 additional places and dropping fees of 120,000 existing spots. At least 15,000 of the places will be dedicated to courses in aged care to help relieve pressure in the sector.

“Providing 180,000 places next year — the first stage in our plan for nearly half a million fee-free TAFE courses for Australians — learning skills for jobs in priority areas, like the care sectors and the digital economy,” Dr Chalmers said.

Fee-free places will be targeted to “priority groups including First Nations people, young people, job seekers, unpaid carers, women in non-traditional fields of study and people with disability”, budget papers state.

The National Skills Agreement will start on January 1, 2023.

“While the interim agreement operates throughout 2023, the government and all states and territories will work together to improve the VET sector, including by delivering a further 300,000 fee-free places from 2024,” the budget says.

Meanwhile, the government will begin the initial design and implementation of the Australian Skills Guarantee, which will require than one in 10 workers on a major Commonwealth-funded project is an apprentice, trainee or a paid cadet.

The Skills Guarantee will bring in apprentice quotas. Picture: Andrew Henshaw/NCA NewsWire

“To make sure the guarantee is effective, the government is undertaking extensive consultation on its design and implementation, and will establish targets for participation of women,” the budget says.

The budget cites the example of “Richard”, an apprentice electrician on a starting salary of $30,040 per year, who begins a four-year Certificate III in Electrotechnology while working in rooftop solar installation.

“As an apprentice in the New Energy sector, Richard will now receive $10,000 in New Energy Apprenticeship support payments,” it says.

“Richard will also have access to personalised non-financial support services, including industry-specific mentoring, peer support and networking opportunities during his apprenticeship. This is on top of existing support for employers.”

As electrician is an occupation on the Australian Apprenticeships Priority List, Richard’s employer will receive around $8430 in wage subsidies, equivalent to 10 per cent of wages paid in the first and second year, and 5 per cent in the third year.

“Richard is also eligible for additional financial support through an income contingent loan, as part of the trade support loan program,” the budget says.

To combat workforce shortages, the government will also establish a new independent body, Jobs and Skills Australia, which will work with states and territories, employers, unions and training providers to undertake detailed labour market analysis and workforce planning.

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Originally published as Federal budget 2022: Tradies and TAFE get $1 billion apprentices boost