Real support for Australian jobs
Julia Gillard,Simon Crean
posted Friday, 13 August 2010
The Gillard Labor Government will support trade apprentices to stay in their jobs by providing a Trades Apprentice Income Bonus.
From 1 January 2011 we will deliver an additional $1,700 tax exempt bonus to apprentices in skills shortage occupations as they reach milestones in their training.
The Trades Apprentice Income Bonus means that trade apprentices will receive a $5,500 tax exempt bonus over the course of their training.
The Trades Apprentice Income Bonus will be paid on top of the existing Tools For Your Trade payments. This means, as trade apprentices reach milestones each year they will get an additional:
• $200 - bringing the 12 month payment to $1,000.
• $200 - bringing the 24 month payment to $1,000.
• $500 - bringing the 36 month payment to $1,200.
• $800 - bringing the completion bonus to $1,500.
An additional 50,000 apprentices are expected to start and stick with their apprenticeship by 2014 as a result of this program.
This is a major investment in the next generation of skilled workers, improving our capacity to address skills shortages by training and employing more Australian Apprentices.
Tony Abbott has no judgement and no plan to develop the skills the economy needs.
Instead of investing in Trade Apprentices he has promised to slash investment in skills and training, denying 1.2 million students at 1,800 secondary schools the opportunity to learn a trade at school.
Under our plan, around 200,000 trade apprentices including carpenters, bricklayers, motor mechanics and cabinet makers will benefit from this initiative.
These payments could be spent by trade apprentices to purchase tools, service their ute or pay their registration and insurance.
Research suggests that the income apprentices earn, particularly in the early years of an apprenticeship, is a contributing factor to poor rates of retention and completion.
Around 28,000 apprentices are lost to their trade each year as a result of not completing their training.
This represents a major cost for those apprentices and for the national economy.
Employers are not always in a position to pay their apprentices more, but Federal Labor has a plan to support economic growth and improve the sustainability of Australian businesses.
We are cutting company tax to promote investment, jobs and wages.
We are also introducing a tax break for all small businesses to help them invest and grow.
Industry research also indicates that a lack of support and pastoral care in the workplace also contributes to poor rates of retention by apprentices.
To help address this, a further investment of $20 million will deliver a Trade Apprentice Mentoring initiative.
Under this program up to 40,000 apprentices will receive targeted mentoring and assistance.
Trade Apprentice Mentoring will include tailored support on work related issues like teamwork, time management, coping with stress and other challenges that apprentices might face in the workplace.
The Trades Apprentice Income Bonus will provide real support for apprentices to continue with their training, and a greater incentive to complete their apprenticeship and get a quality job.
Trade Apprentices on the National Skills List will be eligible if they commenced their apprenticeship from 1 January 2009.
In total, these initiatives represent a $354 million investment over the forward estimates in the skills our nation needs to keep the economy strong.
The cost of these initiatives will be met by a redirection from unallocated funding in the Productivity Places Program over the forward estimates.
For more information visit: http://alp.org.au/agenda/more---policies/support-for-trade-apprentices/
Tags: apprenticeships, employment, Gillard, Government, jobs, trade, Trades People