Regional SMEs can access scholarship funding for young employees

SMALL and medium business owners in regional areas of Australia will be able to access special scholarship funding from March 2015 that will help build their businesses through specific training for young employees.

Prime Minister Tony Abbott and Industry Minister Ian Macfarlane announced two programs in early September that aim to enable young job seekers in regional communities “to successfully get a job and provide employers the skilled employees they need to grow their business”. They are the Training for Employment Scholarship and Youth Employment Pathways programmes. 

The Federal Government will invest $38 million to deliver the Training for Employment Scholarship programme which is being set up to assist employers in regional areas, where youth unemployment is high, to provide job specific training for new employees.

“For the first time, small businesses will be able to access wholly funded government training that is tailored to the training needs of their business,” Mr Macfarlane said.

“Small to medium businesses who hire an unemployed person aged 18-24 will be eligible to receive funding to pay for up to 26 weeks of training.”

Mr Macfarlane said 7,500 scholarships would be provided initially to enable employers to hire new employees “and provide them with the training they need to excel in their new jobs”.

Employers who are approved for a scholarship will be able to engage a training provider of their choice and be reimbursed for the cost of training once their employee completes their training.

“For too long, businesses have been unable to find employees to meet their needs because the applicants lack the specific skills required for the job,” Prime Minster Abbott said.

“Equally, enthusiastic young job seekers have been unable to successfully secure jobs because they do not have training to meet the specific workplace needs.

“The new scholarships will enable businesses to determine the additional training an employee may need for their workplace such as forklift driving, logistics, safe food handling or retail training.”

Mr Abbott said the Federal Government would also establish a new Youth Employment Pathways programme to assist young Australians in regional areas to identify and successfully start on the path to their chosen career by returning to school, starting vocational education training or moving into the workforce.

“Community organisations will be able to apply for funding to deliver support services and training to young Australians aged 15-18 who are not in school,” Mr Abbott said.

He said 3,000 places would be offered initially and enable community organisations to develop and provide a training plan to meet individual needs such as job search and industry specific job training.

“The initial roll-out will be piloted in regional areas where school completion rates are currently low.”

The Training for Employment Scholarship and Youth Employment Pathways programmes will start in March 2015.

www.business.gov.au

ends