BUDGET REACTION -- from Wendy Perry of Workforce Blueprint >>

YOU WATCH THE TREASURER Jim Chalmers MP on the ABC deliver his budget speech, scan the relevant documents (budget paper #2 is the key), and draw some conclusions based upon the language, slogans, what has led up to today with various announcements, and what you know about the longer-term potential approaches being considered.

Jim and Treasury friends believe that the unemployment rate will go up to around 4.5% (unsure of the timeframe) and I [picture in this article is from Budget 2024 afternoon] believe that a % with a 3 in front of it is too low for our economy and employers to function – I’d suggest an average rate of around 4% can work noting that this varies wildly across the country.

Read this blog I wrote in February 2022 – What will Unemployment Rates With a 3 in Front of it do for Labour and Skills Shortages in Australia?

Take what makes sense for you from this summary focusing on economic development, education, employment services and entrepreneurships, higher education, industry and regional development, social enterprises, startups and scaleups, VET and working with specific cohorts. 

There is more cross correlation between portfolios so you might say that makes it more integrated, or others might think it can hide where funds are going from and to.  For each area I’ve chosen the items that might make a difference to you, your business/organisation and your work.

Here we go starting with – Education (schools), where there is support for student wellbeing and piloting new approaches to managing teachers workload, promotion of defence industry career paths, consent and respectful education, on country learning and support packages for First Nations students.

Skills (TAFE) has more fee free places, turbocharging (this is the term used by the Australian Government) teacher, trainer, and assessor workforce (sounds very familiar), TAFE Centres of Excellence supported by a National Network.  TAFE Technology Fund for areas such as electric vehicles, green energy, cyber security, and the pipeline of skills for building and construction with pre-apprenticeships (another program from the past).

Higher education (HE) gets a fair focus with wiping of student debt/loans (reasons range from people being able to borrow for property to chasing some of these debts is a waste of time and money), capped places for international students linked to providers having accommodation and housing for them, addressing gender-based violence in HE, and payments for pracs in health and education.

A goal of 80% of the Australian working age population having a tertiary qualification by 2050.  And funding to progress harmonisation, which I think means one regulator for the tertiary sector in Australia – higher education and VET combined by around 2028; also linked to a National Student Ombudsman for the sector.

There is a new $100 million Outcomes Fund could be interesting supporting place-based strategies in skills and employment, without much detail, but with an equity and gender lens.  There’s $54 million for two new paid work placement programs (Real Jobs, Real Wages and Work Foundations) for job seekers with barriers, and Regional Workforce Transition Plans but lacking information on the purpose.

Not sure if I’m reading it right but looks like incentives for many Australian Apprenticeships disappear from particular industry sectors and job roles, focusing on areas with acute – significant skills – and labour shortages.

Disability Employment Services reform and replacing, current employment which seems to wrap up a number of items, and a kind of vague-ish employment and workplace relations reprioritisation.

Language of ‘Getting the NDIS back on track’ where the spend on fraud detection is similar to the savings – I’ll leave others in the sector to comment on how that might go; and I’m not going to comment on migration either.

Access and equity, support for First Nations people, women, people with disabilities and people from Culturally and Linguistically Diverse (CALD) background have various measures across multiple portfolios.

Opportunities are in:

• Net Zero, Clean Energy, Hydrogen
• Housing, Building and Construction (domestic and not so much large infrastructure projects bar things we already know about)
• Defence, STEM industries, shipbuilding, nuclear-powered submarines
• Early Childhood Education and Care sectors, Health
• Promoting TAFE and VET Pathways (yes that old chestnut!) to drive demand for VET but the products will need to be much better and more future job focused
• Australia-France Roadmap (need to brush up on my French)
• Water and Snow Safety Program
• support measures for Women ($55.6 million investment in the “Building Women’s Careers” program)
• Future Made in Australia – Workforce and Trade Partnerships for Renewable Energy Superpower Industries which seems like some reallocation from the National Reconstruction Fund but that is just my take on it.

Nothing really for small business, so perhaps lobbying here needs to be stepped up with evidence and examples, as there are industry sectors like hospitality doing it really tough in certain places.

On Employment, Jobs and Skills Australia and the National Careers Institute are okay with the progression of the five-year National Skills Agreement, and a few new items such as First Nations Prison to Employment Program (voluntary), National Indigenous Employment and Training Alliance to operate as a First Nations employment services peak body, Energy Industry Jobs Plan, and the Remote Jobs and Economic Development Program.

A line gets put through and savings for Employment come from:

• • $47.3 million over five years from 2023–24 (and $11.1 million per year ongoing) by ceasing the Harvest Trail Services and Harvest Trail Information Service programs from 30 June 2024.
• • $6.1 million over five years from 2023–24 (and $1.2 million per year ongoing) by ceasing the International Skills Training Courses program from 1 April 2024.
• • $4.7 million in 2023–24 by reducing the number of grants issued in the second stage of the Automatic Mutual Recognition of Occupational Registrations scheme under the Business Research and Innovation Initiative.
• • $58.8 million over five years from 2023–24 (and $14.0 million per year ongoing) from ceasing the Workforce Specialists initiative.
• • $53.9 million over four years from 2024–25 (and $17.7 million per year ongoing) from reducing credits to the Workforce Australia – Employment Fund by $100 for each new participant to Workforce Australia Provider Services.
• • $27.0 million over five years from 2023–24 (and $6.6 million per year ongoing) from reducing credits to the Workforce Australia – Employment Fund by $50 for each new participant to Workforce Australia Online.

Well that is a first take, not massively exciting, maybe the last budget before a federal election? I’d put a bet on to say ‘yes’ if I was pushed, but let’s wait and see.

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www.workforceblueprint.com.au

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BUDGET REACTION – Advance Cairns has reported that while the 2024-2025 Federal Budget was big on national initiatives, it was short on specific commitments to Cairns and Far North Queensland.

Advance Cairns, the leading independent economic development and advocacy organisation in Far North Queensland, said while the Budget introduced welcome measures to address cost-of-living pressures and skills shortages in regional Australia, it failed to deliver on key projects such as the Cairns Water Security project.

“We are hard pressed to find any demonstrable new investments in what is Northern Australia’s most populated region, which is deeply disappointing,” Advance Cairns chair, Nick Trompf said. 

“We will continue to push for additional funds to support Cairns Water Security Project Stage 1, which is a vital piece of infrastructure. Without these additional funds to meet the rising construction and materials costs, this project will in fact add to further cost-of-living pressures for all Cairns ratepayers.

“We will continue to support council’s efforts to generate understanding of the cost levers which have resulted in widespread infrastructure build hikes across the nation. Cairns Regional Council is certainly not unique across Australia in facing major construction cost rises.

“We are hopeful that the door remains open to increased funding of this important initiative and we will continue to push for this critical investment,” Mr Trompf said.

The Budget also did not address a range of other initiatives in the Advance Cairns submission including:

• Roads projects of $106m for Savannah Way, $30m for the Kennedy Developmental Road and $20m for a study into alternative routes to the northern Tablelands;
• Establishing an ‘Office of the Pacific’ in Cairns;
• $500,000 per year in recurrent funding for five years for COUCH Wellness Centre in Cairns;
• and $12m for further upgrades to the city’s three shipyards.

Mr Trompf said the Budget included $14-$18bn over the next 10 years for defence infrastructure to create what is described as a ’logistically connected and resilient set of bases, ports and barracks across Australia’s north’.

“This might have implications in key assets such as HMAS Cairns, the Cairns Marine Precinct and the Scherger Air Force base, near Weipa,” Mr Trompf said.

CEO of Advance Cairns Jacinta Reddan said while the lack of direct investment in the region “was incredibly disappointing” there were some areas for optimism. 

She said Advance Cairns welcomed the investment in the Future Made in Australia initiative, recognising its potential to stimulate the region’s economy and result in jobs growth.

“We are encouraged by the opportunities, particularly in onshoring advanced manufacturing in the clean energy and renewables sector,” Ms Reddan said.

“We are also keen to better understand how the commitment of about $41 million over two years to fast-track Nature Positive reforms will benefit Far North Queensland. This initiative holds promise for our region, as it aims to attract private investment in nature regeneration and restoration – assets our region has in abundance.

“We also welcome critically needed reforms to the EPBC (Environment Protection and Biodiversity Conservation Act 1999) and look forward to learning more about how this can improve the current opaque approvals process,” she said.

In addition, Advance Cairns welcomed the Budget’s support for apprenticeships, particularly those in regional Australia, as well as initiatives to grow the construction workforce and boost housing supply.

“We are particularly pleased to see the extension of the Approved Destination Status regime for visitors from China, building a strong foundation for the return of the China group travel market,” Ms Reddan said.

“As always with Budgets, the devil is in the detail and we look forward to drilling down into more information about the specific implications for our region,” she said.

www.advancecairns.com

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BUDGET REACTION – The 2024 Federal Budget’s investment to support the employment of more apprentices and trainees has been welcomed by the Independent Tertiary Education Council Australia (ITECA), the peak body representing independent skills training, higher education, and international education providers.

The Australian Government is providing an additional $265.1 million over four years in financial support for apprentices and their employers.  Under the Australian Apprenticeships Incentive System, apprentices and employers in priority occupations will receive an extra $2,000 and $1,000 respectively.

“This additional funding is welcome and will help aspiring apprentices and trainees plus their potential employers,” ITECA chief executive, Troy Williams said. 

Under the revised system, from July 1, 2024, employers taking on apprentices training in priority occupations will be eligible to receive an additional $1,000 – $5,000 in total – in incentive payments, to help subsidise costs associated with employing an apprentice. 

Further, apprentices undertaking training in priority occupations will be eligible to receive an additional $2,000 – $5,000 in total – in incentive payments, to assist with cost-of-living pressures and support them to finish their training.

“From construction, mining, health and hospitality the Australian Government’s investment will help more people not just into a job, but into a career,” Mr Williams said.

Apprentice payments will be restructured to be frontloaded, with apprentices receiving $3,500 in the first year and $1,500 in the second year. This will provide more assistance to apprentices when they need it most.

Employers can receive up to $5,000 in the first year. Payments will be paid over two instalments, with $2,000 at six months and $3,000 at 12 months.

“The approach of the Australian Government looks to support apprentices and trainees throughout their studies has merit,” Mr Williams said.

Some employers have queried whether the additional amount will make much of a difference when it comes to apprentice and trainee recruitment and retention. 

ITECA noted the Australian Government had a report –  the Strategic Review of the Australian Apprenticeship Incentive System –  underway that would investigate the support available to help more people start and complete apprenticeships and traineeships.

“ITECA looks forwards to ensuring that our members’ views are taken into account as this review makes its recommendations to the Australian Government,” Mr Williams said.

Independent Registered Training Organisations support 50.9 percent of the 365,420 apprentices and trainees in training as at September 2023 accord to the National Centre for Vocational Education Research (NCVER).

www.iteca.edu.au

Fast facts

From July 1, 2024, employers taking on apprentices training in priority occupations will be eligible to receive an additional $1,000 ($5,000 in total) in incentive payments, to help subsidise costs associated with employing an apprentice.

From July 1, apprentices undertaking training in priority occupations will be eligible to receive an additional $2,000 ($5,000 in total) in incentive payments, to assist with cost-of-living pressures and support them to finish their training.

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