Second Reading Speech
Mr Hardgrave (Moreton - Minister for Vocational and Technical Education and Minister Assisting the Prime Minister)
I move:
That this bill be now read a second time.
The Social Security Amendment (Extension of Youth Allowance and Austudy Eligibility to New Apprentices) Bill 2005 will provide net outlays of $383.2 million over three years to provide further assistance to apprentices and trainees in the initial years of their training.
This government's sound financial management has produced a strong economy. A strong and growing economy requires skilled employees.
This bill supports the government's intention to address skills shortages in the Australian economy. It encourages people to participate in New Apprenticeships, providing them with the skills needed to enter or re-enter the work force, re-train for a new job or upgrade for an existing job. This measure will increase the supply of skilled people with a nationally recognised qualification to meet the needs of business and support a more competitive and innovative economy.
This measure, extending eligibility for Youth Allowance and Austudy to full-time apprentices and trainees participating under the New Apprenticeships scheme for the first time, acknowledges how important these people are to our continued economic competitiveness, performance and growth.
The extension of eligibility for youth allowance and Austudy payments to full-time new apprentices will help to ease the financial burden faced by apprentices and trainees in the initial years of their training. New apprentices will be treated consistently with current arrangements for full-time students under the payments, with the application of parental, personal and partner means testing according to their circumstances.
This measure extends these payments by providing additional support to up to 75,000 more people in 2005-06, increasing to approximately 93,000 by the 2008-09 financial year.
This amending bill also contains provisions for the exemption from social security and veterans' entitlements for the Commonwealth trade learning scholarships and Tools for your Trade initiative. The Commonwealth trade learning scholarships will be exempt from assessment as taxable income. It is intended that benefits under the Tools for your Trade initiative will also be exempt from assessment as taxable income. This will ensure that these measures are fully effective and that their value to recipients is not eroded.
The government is introducing a Commonwealth trade learning scholarship to financially assist new apprentices undertaking new apprenticeships in trade occupations in skill shortage areas. The scholarship will provide payments of $500 to new apprentices upon successful completion of their first and second years.
This assistance will encourage and allow many new apprentices to remain in training and reach their goals of becoming fully qualified tradespersons. Furthermore, in conjunction with other initiatives being implemented by this government, there will be greater take-up of trade new apprenticeships as these initiatives break down the barriers and perceptions that currently deter many young people from entering these worthwhile and fulfilling careers.
The Tools for Your Trade initiative aims to help alleviate the financial burden on new apprentices undertaking new apprenticeships in trade occupations where there is a skill shortage. The initiative will make tool kits to the value of $800 available to apprentices undertaking a new apprenticeship in identified trades.
The initiative will help up to 34,000 new apprentices a year, targeting trades experiencing skill shortages as listed in the Department of Employment and Workplace Relations national skill shortages list. Among those to benefit will be new apprentices in metals, motor vehicle and building trades, plumbers, chefs and cooks, cabinet makers, furniture makers and hairdressers-all nation building heroes in our economy.
These measures, combined with other initiatives announced during the election campaign and currently being implemented by this government, represent a significant investment in the future growth of Australian industries and the vocational education and training sector.
I commend the bill to the House and present the explanatory memorandum.
Debate (on motion by Ms George) adjourned.