Brian Mitchell (Lyons, Australian Labor Party) Share this | Hansard source

Thank you, Minister—early childhood education. There were 7,000 respondents in this critical area, and 73 per cent are thinking of leaving in the next three years because of pay and workload issues. So there's a lot of work to be done there, and I know the minister is up to it.

Currently, apprentices in trade occupations have access to these loans, while those in non-trade priority occupations face financial challenges without similar support. This amendment rectifies the disparity and provides that much-needed financial assistance to apprentices in what are largely female dominated industries. By doing so, we anticipate that we'll work in women's participation in these fields, addressing gender imbalances and empowering more individuals to pursue what we hope will be rewarding careers. What's more, expanding eligibility for income-contingent loans will encourage higher participation in apprenticeships across priority non-trade occupations in the care sector, effectively addressing a significant national skill shortage. This amendment provides apprentices with greater financial security, increasing their chances of completing their apprenticeship successfully. There is a drop-off rate between those who start apprenticeships and those who finish, and hopefully this will close that gap. Indeed, apprentices who successfully complete their apprenticeship will be entitled to a 20 per cent discount on the loan amount they need to repay, incentivising completion and rewarding their hard work.

So what does a trade loan look like? For example, an apprentice in Bridgewater in my electorate can access monthly loans up to a total of $22,890 over the life of the apprenticeship to help offset the cost of everyday living and help them gain access to equipment they may need or want to purchase to help them to complete their apprenticeship. The loans are interest free and are repaid through the Australian tax system once you reach the minimal threshold, being $48,361. Think of it as HECS for tradies or HECS for apprentices. I know the member for Indi has mentioned the rising debt because they are pegged to inflation. There is no interest applied, but the loan amount is pegged to inflation so that taxpayers aren't on the hook for movements in CPI. The loan can go up over time, but it must be stressed: the repayment doesn't. The repayment is contingent on your income, not on the loan amount. People can choose to pay the loan off quicker if they choose to do so, but, if not, they can pay it off according to their income. That's different to the loans most of us have. In a cost-of-living crunch our repayments go up as the interest rates go up. That doesn't apply to these loans. They are contingent on your income. That's an important point.

In addition to expanding eligibility, the bill proposes an increase in the loan amount available to apprentices. This takes into account the rising cost of living and training expenses, enabling apprentices to cover their financial commitments more effectively. By providing adequate financial support, we can alleviate some of the financial burdens faced by apprentices and create a conducive environment for them to focus on their training and skill development. Instead of worrying about whether they've got the money, the loan is there. It's a burden they don't need, and they can focus on their skills and training.

The bill recognises the need to support apprentices from diverse backgrounds. To ensure inclusivity, the bill introduces measures to assist disadvantaged apprentices, including those from low-income families, First Nations communities and regional areas. It must be said, there are too many kids from disadvantaged backgrounds who don't even consider that an apprenticeship is even on their horizon. They don't even consider that it's a possibility. Maybe it's intergenerational poverty, or whatever it is, but it's not even on their horizon. This allows them to consider those new horizons. It puts it within reach and opens up the opportunities. These measures aim to address the financial barriers that may hinder participation in apprenticeships, promoting equal opportunities and social mobility. It can be very important for teachers and other community leaders to get the word out that this is now possible. Talk to kids who may be struggling at school, perhaps, but who may be perfect for an apprenticeship or a trade. Let them know that this sort of support is available to them.

The bill also acknowledges the importance of ongoing support and mentorship for apprentices throughout their journey. Recognising that apprenticeships can be challenging, the legislation proposes the establishment of a mentoring program. That program will connect experienced tradespeople and industry professionals with apprentices, providing guidance, advice and encouragement. By fostering these relationships we can enhance apprentices' skill development, retention rates and overall success in their chosen occupations.

Furthermore, the Trade Support Loans Amendment Bill emphasises the importance of quality training and assessment for apprentices. To ensure high standards across the apprenticeship system, the bill introduces stricter compliance measures for training providers and employers. This includes monitoring and evaluating the quality of training delivery, assessment practices and the overall learning experience. By maintaining rigorous standards, we can safeguard the integrity of apprenticeships and ensure that apprentices receive the necessary skills and knowledge for their future careers. The last thing we want is to see kids going into a training program or apprenticeship with some dodgy bloke down the back shed who doesn't give them the skills and training they really require, causing them to come out with an absolutely worthless qualification. We want to make sure that they get the skills and training that they're paying for, and, indeed, that the government is contributing to, so that they get the skills and training that the community needs.

To reflect the expanded eligibility, the bill will also rename the current trade support loans as Australian apprenticeship support loans. This rebranding signifies the inclusivity of the scheme beyond the trades, recognises the changing landscape of apprenticeships and aligns with the overarching incentive system introduced in July last year.

The amendments proposed in this bill replace the outdated trade support loans priority list with the Australian apprenticeships priority list, and this priority list will be determined by the minister based on the advice of Jobs and Skills Australia and will be regularly updated to align with current and future skills needs. By maintaining an up-to-date priority list, we can ensure that access to the loan scheme reflects the most pressing skills gaps in our labour market, supporting apprentices in occupations that are in demand and will contribute significantly to our economy.

It's important to note that these amendments complement and align with the broader Australian apprenticeships incentive system, underscoring the Albanese government's commitment to comprehensive reform in the apprenticeships sector. These reforms aim to address the urgent skills crisis we are facing as a nation and secure a more prosperous future for our workers. Australia has the second-highest labour supply shortages across all OECD countries. Three million Australians currently lack the fundamental skills required to participate in training and secure work. I know this is the case in Tasmania, including in my own electorate. We don't have enough skilled workers, and it affects our economy, our productivity and the ability of people to find secure and meaningful employment.

Workers in remote, rural and regional areas have been crying out, wanting to upskill or reskill for years. Unfortunately, the former government largely ignored this and created a skills crisis. When you rip billions of dollars out of TAFE training programs and skills programs over nine years in government, the effect is that you end up with a skills drought at the end of it. When you're nine years in government and you've got fewer people completing traineeships and apprenticeships after nine years than when you started, that shows there's a problem.

So we've got a huge job ahead of us to reskill, and the minister is making a terrific start, with 480,000 Australians able to take part in fee-free TAFE. We've got to do better by our young people who need these jobs and programs. The Albanese government is not leaving anybody behind, especially not young workers who are looking to gain skilled and meaningful employment. Our billion-dollar fee-free TAFE skills arrangement announced in October does give Australians the opportunity to upskill through those places from January this year, and already, as we've heard, 150,000 Australians, many of them young Australians, have taken up this great opportunity.

I must stress, though, while of course we do associate TAFE and training with young people, it's not just restricted to young people. We have older people wanting to retrain and get back into the workforce. Perhaps they have been made redundant and want to reskill in a new area. They also can take advantage of this. We've got older women gaining new skills. Indeed, I met a woman training to be an aged-care worker at Clarence TAFE just a few weeks ago, and she said that she wouldn't have undertaken that course if it hadn't been for the fee-free nature of it. She would be in her 50s, and there she is looking to join the critical aged-care workforce. I look forward to seeing her at one of the aged-care centres in my electorate soon.

The bill before the House now is testament to providing further opportunity for young workers. We are making trade and skills training more accessible for more Australians. The Albanese government is committed to improving jobs and skills education across the country. Sorell, which is in my electorate, will receive a new jobs and skills hub as a result of an election promise, ensuring more skilled work education in the south-east region of Tasmania. Young people living in rural and regional areas across Tasmania and Australia deserve the same opportunities as those living in our cities. They deserve access to services that will benefit their future without having to travel so far for them. We are delivering these opportunities for our young people.

The former government stole opportunity from our young people over their nine years in office. It was the Liberals who defunded TAFE, giving school leavers limited ability to upskill and learn a trade. The Leader of the Opposition was part of a government that deliberately kept wages low—such a betrayal of young workers. We are different. We are bringing this program in and we look forward to seeing it work and seeing more young people take up the opportunity of an apprenticeship.

See this speech in context