Business Daily Media

Men's Weekly

.

what is it, who qualifies, what does it pay?

  • Written by Peter Hurley, Policy Fellow, Mitchell Institute, Victoria University
what is it, who qualifies, what does it pay?

The Australian government has announced a A$2 billion skills package it has dubbed JobTrainer.

It follows JobKeeper, the wage subsidy program (worth about A$70 billion[1]); Jobseeker, which doubled the A$550-a-week unemployment benefit (as well as other government income payments, at a cost of A$14 billion); and JobMaker, providing A$250 million[2] to stimulate work in the entertainment, arts and screen sectors.

Read more: Government announces $2.5 billion package to support training and apprenticeships[3]

The JobTrainer package has two parts.

The first part, worth A$1.5 billion, is aimed at keeping those already in apprenticeships and traineeships employed.

The second part is aimed at school leavers and those looking for work. It provides A$500 million for vocational education and training courses. That funding is conditional on matching funds from state and territory governments.

Subsidising wages

The A$1.5 billion to subsidise the wages of currently employed apprentices and trainees extends a pre-existing program called Supporting Apprentices and Trainees[4].

It covers half the wage eligible employers pay apprentices and trainees, up to A$7,000 a quarter (A$28,000 a year). This compares to A$9,750 the Jobkeeper pays as a flat rate of A$750 a week.

But unlike JobKeeper, employers are not required to demonstrate reduced turnover to qualify.

There is a cut-off criteria according to organisation size, but it’s more generous than the scheme it extends. Previously the subsidy was only available to businesses with fewer than 20 employees. Now the limit is 200.

The federal government estimates about 90,000 businesses will use the scheme, supporting about 180,000 apprentices or trainees. The scheme is scheduled to run till March 31 2021.

Vocational education and training

The second part of the JobTrainer announcement is expected to support an extra 340,000 free or low-cost course places from September 2020 – dependent on the states and territories matching the federal goverment’s A$500 million.

Funding will prioritise courses in areas the National Skills Commission[5] has identified to as likely to see job growth. Examples nominated include health care and social assistance, transport, warehousing, manufacturing, retail and wholesale trade.

Many of the 340,000 training places are likely to be shorter courses, known as skills sets[6], which are parts of full qualifications.

These skills sets can provide students entry into new industries and also pathways to full qualifications which Australians can access through existing funding and subsidy arrangements.

Public, not-for-profit and private training organisations will all be eligible to apply for funding to provide these courses.

The vocational education and training system has suffered many problems over the past decade[7] – including policies that resulted in widespread rorts[8] and funding cuts.

Even with an extra $1 billion in funding, total government support is still likely to be lower than its 2012 peak.

What’s missing from JobTrainer

JobTrainer doesn’t provide any new incentives or subsidies to encourage employers to take on new apprentices or trainees.

In April and May 2020 the number of new apprentices and trainees fell 33%[9] on the same months in 2019.

The Mitchell Institute has previously highlighted[10] how fewer apprenticeships and traineeships can have negative long term effects.

Read more: Trade apprentices will help our post COVID-19 recovery. We need to do more to keep them in work[11]

This is especially true for school leavers. About 12% of all school leavers[12] take an apprenticeship or traineeship as a pathway into the workforce.

Not making a successful transition from school to the workforce is associated with poor long-term outcomes[13]. These include higher rates of long term unemployment, high incidences of health problems and a lifetime engagement with the workforce characterised by low pay and precarious work.

Fewer new apprenticeships also disrupts the pipeline of skilled workers. An apprenticeship usually takes four years. This means a reduction in new apprentices now will result in fewer people completing their apprenticeship in four years’ time.

The JobTrainer policy probably won’t be enough to keep all current apprentices and trainees in their jobs. Employers faced with reduced work and uncertain conditions may still make the difficult decision to suspend or cancel a training contract.

But it is certainly welcome assistance to keep those losses to a minimum.

Authors: Peter Hurley, Policy Fellow, Mitchell Institute, Victoria University

Read more https://theconversation.com/jobtrainer-explained-what-is-it-who-qualifies-what-does-it-pay-142818

Beyond the Banks: Why Agility and Tech Integration Are Defining the Future of Lending in Australia

In Australia’s evolving credit landscape, non-bank lenders are no longer merely filling gaps left by traditional institutions; they are actively r...

Carma appoints Owen Wilson as Chair of the Board

Carma’s next phase of growth to be guided by REA Group’s outgoing CEO who oversaw realestate.com.au rise to be Australia's #1 place for property ...

Digital Upgrade to Boost Efficiency Across Tasmanian Ports

TasPorts is undertaking a multimillion-dollar digital transformation that will improve efficiency, and enable smarter, more sustainable operations a...

Simplifying ecommerce integrations: How to streamline your setup without the stress

In today’s fast-moving retail world, having an ecommerce presence isn’t optional. Platforms like Shopify, WooCommerce, and Squarespace have lowered...

Shop Small Returns to Back the Small Businesses Supporting Local Communities

The annual Shop Small movement by American Express is returning for its 13th year in Australia to galvanise support for the country’s vibrant smal...

Introducing Commerce, the New Parent Brand of BigCommerce, Feedonomics and Makeswift, Powering an AI-Driven Future

Commerce’s open, intelligent ecosystem connects the tools and systems that drive growth and empower businesses to unlock data potential and deliver ...

Sell by LayBy