Dan Repacholi (Hunter, Australian Labor Party) Share this | Hansard source

I rise today to contribute to the debate on the Trade Support Loans Amendment Bill 2023 and the associated bill. Education is vital for everyone. We as a country regularly brag about how proud we are of our world-class education system. But, as I've said in this place before, years 11 and 12 and university studies aren't the only types of education will that create opportunities. Years 11 and 12 and university are just not for some people. I will proudly say that I was one of those people. I didn't do year 11 or year 12. In fact, I didn't even make it to year 10, and I certainly didn't go to university, but my life has turned out pretty well, and I have been able to receive, and make the most of, all the opportunities I could have dreamt of. This is because I got a trade.

While being in a classroom and writing essays wasn't for me, using my hands was, and this is the case for hundreds of thousands—if not millions—of people around Australia. We are a government that wants to support people like me to access the sort of life-changing education and training that is suited to them. We want to ensure that Australians from all backgrounds and cultures are supported to achieve their full potential, and this bill is critical to continuing this work. Trades are so valuable and so very important, but so are other skills, such as those used in the care sector and other occupations that are predominantly taken up by women. That is why this bill will expand the trade support loan program to non-trade occupations for the first time. Not only are these skill sets important for people better suited to working with their hands than working in an office but they are also important for our country.

Tradies are cool. We need tradies, and we need workers in the care sector. We need all of the skills that will be supported by the bill. Right now in this country, we are facing the most significant skills shortage in decades. I know this because I was the manager of an engineering shop. I saw how hard it was to get apprentices, and I saw how hard it was to keep them. The measures in this bill are a practical way that we can extend financial support to more apprentices and trainees. Australian apprenticeship support loans will support them to continue and to complete their qualifications so they can get a good job in areas that are crying out for more workers. Sectors with skills shortages can't get more qualified workers until more apprentices and trainees finish their apprenticeships and traineeships. This bill is good for trainees and apprentices and is good for our country. This is a government that supports all of the skills that this country needs to operate and move forward, and we support the apprentices training and learning these most important skills. This program needs to be expanded so that nobody is left behind, and that's what we are doing. To reflect this, the program will be renamed Australian apprenticeship support loans.

Trade support loans are absolute gold for apprentices. They are an interest-free, income-contingent government loan to support Australian apprentices to meet their everyday expenses while they undertake an apprenticeship. We need those who start their training to go through with it and become qualified. To encourage this, those who complete their training will receive a 20 per cent discount on their loan. Eligible apprentices are able to access a maximum of $22,890 throughout their apprenticeship, which is paid by monthly payments. The loans are tapered throughout an apprenticeship. As an apprentice becomes more skilled, they become more valuable and are paid more, so the highest payments of this loan are at the start of the apprenticeship to reflect lower wages early in an apprenticeship. Since 2014, these payments have already helped over 167,000 apprentices who may have otherwise struggled to complete their apprenticeship. But with the changes we are making under this bill to make the system fairer and more effective I hope this number will skyrocket.

The current trade support loans priority list is limited to apprentices in traditional trades, but our skills shortages span far wider than that. Areas like early childhood education, aged care and disability care are experiencing severe shortages too, but trainees in these sectors can't currently access the support that is available to those in traditional trades. Without support for the people to be able to finish their apprenticeships and traineeships in these areas, how can we expect the skill shortages to ever ease? It makes sense for the program to be expanded to all areas of the skills shortage, and that's what we're doing.

Non-trade apprenticeships are dominated by women, with 76.8 per cent of women apprentices and trainees in non-trade occupations such as childcare, retail, administration and hospitality. That's 95,335 women. Women who choose to undertake an apprenticeship or traineeship should be able to access the same support as those in male dominated trades. This change is expected to boost support for women's continued participation in the workforce and provide equal support for apprentices and traineeships historically undertaken by women.

We know that the skills Australia needs are always changing, and the sector which is experiencing the biggest shortage of skills changes too. To make sure that nobody misses out on the support they need, the new Australian apprenticeships priority list will be determined at least annually and will be expanded to occupations that have access to the program, including non-trade occupations. This will give flexibility to open the financial support to occupations in the high skills needed in the care sector such as enrolled nurses, personal care assistants and therapists.

This government has a strong focus on modernising and rebuilding our vocational education system. We have a lot of work to do, but we have already made a lot of progress. We are delivering 180,000 free TAFE positions in 2023 and a further 300,000 places to become fee-free from 2024. This bill and the new Australian apprenticeship support loans program will continue with our work and focus to help Australia and Australians meet our current and future skills needs.

We also established Jobs and Skills Australia, which is a permanent independent body responsible for providing advice to government to underpin Australia's response to current, emerging and future labour market and workforce skills and training needs, to improve employment opportunities and economic growth. The benefits of this are already being shown with this bill. In determining the new Australian apprenticeships priority list, the bill requires the minister to have regard to the advice of Jobs and Skills Australia. This will help make sure that the priority list is reflective of the current, emerging and future skills and training needs in the workforce so that we avoid getting into the position that we're currently in, with a broken vocational education system and skill shortages in important sectors. We said we would have a focus on jobs and skills, and that is what we are delivering.

Doing a trade can be tough, and it takes time to be qualified and earning a full income. It's even harder now with the cost-of-living pressures that are facing so many Australians, but business needs employees, and the cost of living should not be a factor in whether or not someone decides to enter into an apprenticeship. It disappoints me to think that some decide to stop their apprenticeship because it's just too hard financially. This bill is providing another avenue of financial support to a broader range of apprentices and trainees and will help more apprentices with the cost-of-living pressures while they train and ensure more apprentices enter jobs which are crying out for apprentices. It means that apprentices can go and do their training without struggling financially and receive all of the rewards that come with being qualified at the end of their apprenticeship.

I want to finish by saying something to the people in my electorate of Hunter, especially young people who may be trying to work out what they want to do with their lives. University is amazing, and it's easier to access than in the past, which is great. But if it doesn't sound like it's for you—if you want to use your hands and build things in a trade, or if you have a passion for caring for others—choosing an apprenticeship or a traineeship is a good, solid pathway for you that will pay you while you learn your skills. It will give you the opportunities to set yourself and your family up for the future. Now, regardless of what area you want to get into, there is support available to you. So go and chase what you're interested in, chase a future that you'll enjoy. I did it, and I wouldn't change a thing, because tradies are cool.

I commend the bill to the House.

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