Tradies to get extra $500 to buy tools

APPRENTICES would get an extra $500 to buy tools under Rudd's pitch to increase the number of young workers completing training.

APPRENTICES would receive an extra $500 to buy tools under Kevin Rudd's pitch to increase the number of young workers completing training.

The Prime Minister used his campaign launch in Brisbane to ramp up his commitment to job creation, provide better training opportunities for young Australians and improve opportunities for Australian industry.

One of the initiatives he announced was the expansion of the completion payment under the Tools For Your Trade program from $1500 to $2000, taking the overall benefit to $6000 over the life of an apprenticeship. The plan would take effect from July next year and cost $34.1 million.

Mr Rudd said his policy "would give 70,000 apprentices more cash in their pockets to buy the tools that they need.

He framed the initiative as a riposte to Tony Abbott's plan to provide apprentices with interest-free "trade support loans" of up to $20,000.

The loans proposed by the Opposition Leader would be paid back at the same income threshold as the Fee-Help loans for university students. Those who complete their apprenticeships would be eligible for an immediate 20 per cent discount on the loan. The loans would target those occupations on the National Skills Needs List like plumbers, electricians and fitters and be split over the four years of the apprenticeship.

But Mr Rudd laid into the initiative, saying the Coalition was burdening young Australians with debt before they had properly begun their careers. "I want to help young Australian apprentices to get started in their trade with a grant while Mr Abbott instead simply offers you a $20,000 loan -- that is a $20,000 debt to hang over your head before you even get started," he said.

Currently, about half of those who start an apprenticeship do not finish, with Mr Rudd's grant boost an attempt to help apprentices meet extra costs as they complete their training.

Usually, an apprentice can use the power tools provided on site by their employer but will need to purchase their own equipment if they want to subcontract once they are fully qualified.

Increasing the completion payment means that while a newly qualified carpenter could buy a nine-piece power tool kit for about $1500, they will have an additional $500 to buy other hand tools to start out on their own.