Mr Tony Burke (Watson, Australian Labor Party, Minister for Employment and Workplace Relations) Share this | Hansard source

I'll give the right of reply on behalf of Minister O'Connor on the Trade Support Loans Amendment Bill 2023. I want to thank everybody for their contributions to the debate. The bill is part of the Albanese government's work to ensure that Australians from all backgrounds are supported to achieve their full potential.

The changes in this bill facilitate the expansion of the trade support loan program, providing cost-of-living relief to more Australian apprentices and trainees. Trade support loans are interest-free government loans available to support apprentices in occupations of high skills need with everyday living expenses. Currently the Trade Support Loans Act 2014 restricts access to these loans to apprentices in trade occupations on the trade support loan priority list. This existing list of occupations has not been updated for a very long time. It's not responsive and no longer aligns with current or future skills needs. The amendments in this bill will replace the existing priority list with a new Australian apprenticeships priority list. The new priority list will be responsive to Australia's skills needs and will include key in-demand occupations that can be pursued through an apprenticeship or a traineeship. Occupations with current, emerging or future demand will be determined with regard to advice from Jobs and Skills Australia, ensuring a rigorous evidence base.

These changes mean that we'll be able to support Australians training in priority non-trade occupations, such as aged care, child care and disability care, with an income-contingent loan to help them meet the cost of living while they train. By extending eligibility, the bill will assist many women, as women predominantly take up non-trade apprenticeships and traineeships and currently lack the support of these loans. To reflect the expanded eligibility, the bill will rename trade support loans to 'Australian apprenticeship support loans'. The bill will also make the program fairer by enabling the flexibility to provide immediate support to apprentices who missed payments due to issues outside their control, such as due to administrative error.

I note some of the issues that were raised by the member for Fowler. Obviously, governments can't support second reading amendments, because they effectively negate the bill, but there are issues contained within that second reading amendment that I'll briefly refer to. Trade support loans are indexed on the same basis as other student loans, and are a small subset of those loans. Any changes to the operation of indexation of these loans would be a much broader piece of work, involving significant cost to the taxpayer. It wouldn't be appropriate to deal with this matter as part of the bill before the House. I also note that the Minister for Education has asked the Australian Universities Accord Panel to consider the operation of HECS-HELP loans. The panel's work is ongoing, with an interim report due mid-year and a final report due by December 2023.

With the expanded Australian apprenticeship support loan program, the government is boosting access to the support available to apprentices and trainees to complete their qualifications. It's also better targeting that support towards occupations where there is the greatest skills need. I welcome the opposition's public statements of support for the bill and hope that their support will facilitate swift passage of the bill through the other place to ensure that apprentices and trainees receive this cost-of-living support as soon as possible. Once again, I thank all members for engaging on the bill.

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