Lucy Wicks (Robertson, Liberal Party) Share this | Hansard source

Apprentices will receive better support thanks to the coalition government's Trade Support Loans legislation. Having more apprentices in the workforce means we can boost our productivity and meet the changing needs of our economy. It also means we can continue to enjoy the standard of living we have today. Imagine, for a moment, a world without tradespeople and apprentices. Imagine a world where trade skills were lost because they were not passed down to a younger generation. It may seem like hyperbole, but consider for a moment the possible consequences. Our houses would fall down eventually because there would be no-one to fix a leaky roof or the plumbing. We could not build any new houses. Manufacturing would become a thing of the past. Cars and public transport would come to a standstill. Baking and bread making would become a home based pastime, and we would all have to learn how to make our danishes and sausage rolls for morning tea. We would have no furniture because there would be no cabinet makers. Our computers and our IT systems would not work—not even Facebook. We would cut our own hair. It would even impact romance, because even jewellery making is considered to be a trade.

So our Trade Support Loans scheme, the fulfilment of a commitment that we made to the people of the Central Coast in our growth plan, will provide real support for apprentices to complete their skills training and provide a stronger incentive for young Australians to become apprentices and complete their apprenticeships. At present, there are high dropout rates in apprenticeships, and only one in two people actually completes their training. This can have a significant economic and social impact. Our trade support loans are part of the solution because they have the dual effect of providing financial support for people to complete their training as well as encouraging more Australians to learn a trade by offering interest-free loans of up to $20,000 to assist with everyday costs. Payments will be made monthly in arrears and will be at a higher rate during the first two years to provide support when it is needed most and when wages are at their lowest. Apprentices will have access to up to $8,000 in their first year, $6,000 in their second year, $4,000 in their third year and $2,000 in their fourth year.

These Trade Support Loans will commence in July at an estimated cost of $1.9 billion over the forward estimates. They are flexible to meet the needs of every individual. For example, an apprentice could opt in for just six months so that they could buy their tools, or perhaps save up their first year's payments to buy a second-hand car and then opt out of further loan payments if they wanted. Or they can take the full amount to cover living expenses throughout their four years or so of training. Apprentices will have to apply for a loan and will have to indicate every six months if they want it to continue. In this way, we can ensure that apprentices are aware of the debt they are accruing. As an additional incentive, anyone who completes their apprenticeship will have the amount owing on their loan reduced by 20 per cent. Like FEE-HELP and HECS loans for higher education students, apprentices will only repay their loans through the tax system when they are working and earning an income of at least $50,000 per year. Unlike Labor's Tools for Your Trade program, our trade support loans are a hand up, not a hand out. The Tools For Your Trade program delivered a payment of $5,500 in five lump sums. But what we found by talking to apprenticeship centres and employers, including those on the Central Coast, is that there was growing community concern that some apprentices were wasting their tool allowance on holidays, 21st birthday parties and other recreational activities.

The feedback that I am getting from people on the Central Coast about our loans scheme is very positive. Caine Howell, a third year apprentice bricklayer from Green Point, told me it is hard to make ends meet and that the Trade Support Loan scheme will provide him with help when he needs it the most. Jack Vicary, a third year apprentice carpenter from North Avoca, said he has a long list of expenses such as car costs, petrol and general vehicle costs, and he needs these things to be able to do his job. Jack told me he was really pleased to hear how the government was supporting tradies on the Central Coast. Jack and Caine are just two examples of the more than 2,000 apprentices in my electorate who will benefit from our government's reforms. Our plan will also be better for employers on the Central Coast. Brock Robson, owner of All Jobs Plumbing at North Avoca, said he has been reluctant to take on plumbing apprentices due to the fear of them losing interest in their trade and leaving. He believes the new Trade Support Loans scheme will help apprentices stay focused on completing their trade. Mr Robson said it gives him the reassurance he needs to take on apprentices and give them a fair go.

Australia needs a training system that provides the skills that industry needs and delivers real jobs. The Trade Support Loans Bill is part of this system which is already being well received in my electorate of Robertson. I commend the legislation to the House.

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