Andrew Charlton (Parramatta, Australian Labor Party) Share this | Hansard source

I rise to support the Trade Support Loans Amendment Bill 2023 and the Student Loans (Overseas Debtors Repayment Levy) Amendment Bill 2023. The amendments included in these bills build upon the federal government's existing trade support loans, established in 2014. Every year, these interest-free, income-contingent loans are crucial to thousands of Australian apprentices and businesses alike. They provide up to $22,890 for apprentices to meet their day-to-day costs while they undertake training.

Trade support loans have been a success; in fact, trade support loans have a high take-up rate and support a significant number of apprentices across Australia. Between 2021 and 2022, 16,655 TSL applications were approved and 50,428 apprentices received a TSL payment. A 20 per cent completion discount for those who successfully completed their apprenticeships was also given to more than 12,000 apprentices. I also note that, since the program started in 2014, 159,139 applications from eligible apprentices have been approved.

Trade support loans have historically aimed to reduce inequality in educational and employment opportunities. They help level the playing field by providing those who opt for vocational education with opportunities for financial support similar to those often afforded only to university students. By offering income-contingent loans, trade support loans also help ensure that repayments are affordable, making it easier for recipients to manage their finances. Importantly, this means that more Australians, regardless of their financial circumstances, are enabled to embark on a career in trade. This is a powerful step towards promoting social mobility and reducing economic disparity when it comes to accessing vocational training.

This is a commendable initiative that will help Australians when they need it most, especially as the cost-of-living crisis continues to hit households across the country. These measures tackle the issue of high and rising financial barriers faced by our aspiring tradespeople trying to pursue vocational education and training, and these bills build on existing opportunities by expanding access to trade support loans to a broader range of priority fields and professions, including some non-trade occupations, like aged care, disability support and child care. These are industries that are crucial to the positive future we promised during the last election, which we're delivering through policies that improve aged care by ensuring a registered nurse is onsite 24 hours a day, seven days a week; through our commitment to protecting the National Disability Insurance Scheme; and through our measures to make child care cheaper and more affordable—something that benefits 96 per cent of families in my electorate of Parramatta.

A recent report from Melbourne university's Centre for the Study of Higher Education found that the last 34 years have seen large amounts of HELP debt accumulated. The report also found that, while debt was accrued, income levels in these occupations resulted in debt not being repaid or being repaid slowly. But, importantly, the report noted that these levels of debt did not exist for the many occupations which required VET sector training, whilst resulting in comparable levels of income. So it's clear that a benefit of the trade support loans program includes the ability to minimise the risk apprentices undertake in accruing large debts during their training, thanks to the lifetime limit and opt-in features of the program. It's also worth noting that the measures included in these bills improve the fairness of the program. The Trade Support Loans Amendment Bill also allows discretion to approve late applications in appropriate situations.

At the heart of these bills lie the building blocks of a better future for aspiring tradespeople and critical industries alike. Not only do these bills help create employment opportunities and enable aspirational Australians to pursue their passions but they support critical industries that lack the workforce to grow and prosper. Importantly, these bills recognise the significance of vocational training and education in enabling economic empowerment for many Australians today while shaping our nation's workforce for the future.

These bills build on the existing trade support loans by expanding the program to key priority occupations beyond those limited to the trades. This will mean more apprentices in more in-demand and priority industries will be able to access this crucial source of financial support. In recognition of this, one of the key provisions is to rename the trade support loans as the Australian apprenticeship support loans. Eligible apprentices currently undertake training in one of several priority areas. As of March 2023, this includes important industrial trades ranging from baking and bricklaying to telecommunications engineering.

A key provision of these bills is to enable the government to adapt to the needs of the labour market, ensuring that the contemporary workforce needs and priorities are met whilst providing more flexibility to prepare for emerging and future needs. The bills do this by allowing the minister, through legislative instrument, to determine the Australian Apprenticeships Priority List and, as a result, to determine which occupations or qualifications are a priority for the nation. Importantly, these bills also require the minister to consider the advice given by Jobs and Skills Australia when it comes to the current and emerging labour market, workforce needs and priorities, and Australia's current, emerging and future skills and training priorities. This helps ensure that eligibility is determined based on evidence and reflects up-to-date skills needs. The priority list will be updated manually to align with the latest forecasts and evidence from Jobs and Skills Australia.

That's a stark contrast with the current state of the eligibility list, which has fallen into a state of static and neglect. The past couple of years alone have shown how much things have changed in Australia's economy and workforce, and it's a clear reminder of how the former coalition government operated when they let the priority list fall out of date for many years. Well, that ends now, and this forward-thinking approach when it comes to workforce development is exactly what Australia needs to build a more positive, prosperous and stable economic future.

A highly skilled and competent workforce enhances productivity. It drives innovation and fosters economic growth. Skilled tradespeople are the backbone of our economy, whether it be in our infrastructure projects, building our bridges and roads, or in making our day-to-day appliances work. Investing in vocational training for aspiring tradespeople and workers doubles as an investment in the future prosperity of our country, and these bills do just that.

Finally, I want to talk about the importance of education and the role it plays in enabling success in life. I stand here in this chamber as a proud member of the Australian Labor Party, who built our country's public education system. Good education is one of the building blocks of helping Australians reach their aspirations, and every child deserves that opportunity. These are the values instilled in me by my life experiences. My mum, Catherine, was a teacher for most of her life and shared with me her passion for learning, and I attribute much of what I've done later in life to this passion for education and learning. My commitment to my community is to share this passion and to help locals reach their aspirations through good local education, and that's why I am proud to be part of a government that is investing in education. As part of the May 2023 budget, we're creating an additional 300,000 TAFE places on top of the 180,000 we created last year. We've also delivered an additional $53.4 million to support Australian apprentices, benefiting no fewer than 3,940 apprentices currently training in Parramatta. I'm serious about education, and these bills are yet another example showing that the Albanese government is too. I commend them to the House.

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