Zoe Daniel (Goldstein, Independent) Share this | Link to this | Hansard source

I rise in support of the Trade Loans Amendment Bill 2023. As the minister noted in his second reading speech, since the introduction of trade support loans in 2014, apprentices who've taken advantage of this scheme are 10 per cent more likely to complete their apprenticeships than those who have not. I am also pleased that this government is expanding and revamping the scheme. There will be a new priority list extending the loans not just to apprentices but also to trainees in critical occupations. This means that enrolled nurses, personal care assistants, therapists and dental technicians will be eligible for the first time. This means an end to the existing rules which restrict the program to a limited group of trade occupations, occupations that tend to be dominated by men rather than women. This legislation will extend eligibility to non-trade occupations, and, as the latest data from the National Centre for Vocational Education Research cited by the minister demonstrates, it is the non-trade categories that overwhelmingly attract women.

Close to 100,000 women, 95,335 to be precise, as at September last year, are in non-trade apprenticeships and traineeships—that's 76.8 per cent of all the women who are in apprenticeships and traineeships. If this initiative will encourage more women to conclude their courses, that will be for the good, because, in Australia, women remain an underutilised resource. Recent data from a partnership between Chief Executive Women and Impact Economics and Policy found that increasing women's participation in the paid workforce would address Australia's current skills shortage and have a long-lasting impact on productivity. The study found that engaging women in paid work at the same rate as men could unlock an additional one million full-time skilled workers. Grattan Institute data also estimates that a six per cent increase in female workforce participation would add $25 billion to Australia's GDP. As Grattan's Danielle Wood noted in her keynote address to the Jobs and Skills Summit last year:

… if untapped women's workforce participation was a massive ore deposit, we would have governments lining up to give tax concessions to get it out of the ground.

I will keep repeating that quote to ensure that it lands.

This legislation appears to be one small step in the right direction. In its original incarnation, it encouraged more apprentices to complete their qualifications. I see every reason why these measures will provide further support and encouragement. Importantly, it's designed to encourage more women to enter and complete those qualifications. Equally importantly, the new priority list will have the flexibility to include occupations in early childhood education, aged and disability care. These are all areas of priority and where we have significant shortfalls in the number of qualified workers that we need. But, when it comes to women, we must also not forget what are termed 'traditional trades'. Completion rates for women in construction and building trades are lower than for men in many cases because women find the workplaces an unfriendly, unwelcoming environment. These are factors that we, as a parliament and a society, still need to address.

We must also develop a strategy to channel women and girls into the industries that will emerge from the coming renewables revolution. If we do not, we will have yet another hi-vis male-dominated trades based sector that is neither attractive nor indeed safe for women. Girls care about climate, and they want to do something. It is up to us to channel their enthusiasm into what will be a thriving sector with well-paid, secure jobs. Women and girls deserve a slice of that cake.

I also understand that this legislation has attracted the attention of the education minister, who is interested in seeing whether it can be applied to other areas of higher education beyond the vocational education and training sector. The indications are that, for women, especially unpaid placements as part of their nursing and teacher training, it can be particularly challenging, leading to what is being dubbed 'placement poverty' as they're forced to give up paid work to do their on-the-job training. This can lead to people well through their qualification period giving up simply because they need money now just to get by. I hope the education minister can find a way to adapt this successful and now expanding program to his areas of responsibility.

Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

It just doesn't matter where you are in Australia—whether you're in a major metropolitan city or a small regional town, every industry is struggling to find skilled and available workers. This is especially acute in the care sectors, with even more effects in smaller regional centres. Whether it's aged-care facilities desperate for workers, the local early education centre chasing new staff or NDIS providers trying to find skilled workers, there is a drastic skill shortage, which has been perpetuated by the former government, who sat on their hands and did little but make announcements rather than actually trying to fix it. Unlike the Abbott, Turnbull and Morrison governments, the Albanese Labor government is committed to taking meaningful action to address the urgent skills crisis. We're already well underway when it comes to the hard work required to address the major issue. We permanently established Jobs and Skills Australia. We invested in fee-free TAFE and providing more places in universities.

The Trade Support Loans Amendment Bill 2023 continues this critical work by introducing measures to facilitate the expansion of the longstanding trade support loans program and make it fairer for more Australian apprentices. The amendments will make loans available to Australian apprentices in the priority non-trade sector for the first time, including female dominated apprenticeships. This is in clear contrast to the previous government, who had every opportunity and put up and left the barriers, keeping women out of the workforce or from advancing in their careers. The Albanese Labor government, in contrast, has been on the front foot since its election last year to tear down some of these barriers that affect women's participation in the workforce, whether it was by introducing the 10 days paid family and domestic violence leave, making child care cheaper or implementing our gender equality agenda for jobs and wages, including bringing transparency of pay to workplaces so that we know what goes on and measure it, and then we can improve.

These amendments and the widening of the availability of the trade support loans scheme will address the national skills shortage as well as getting more skilled women into the workforce. It's crucial that the expanded and fairer eligibility scheme in the amendments is in place to allow all apprentices in priority occupations to access additional support through this income-contingent loan. It's a scheme that helps them to meet their day-to-day living costs while they train. It also helps incentivise them to complete their training.

Trade support loans are an interest-free income-contingent government loan to support Australian apprentices to meet their everyday expenses while they undertake an apprenticeship. Eligible apprentices can access monthly loans up to a total of $22,890 over the life of their apprenticeship. Available loan amounts are tapered over the life of the apprenticeship, with levels of financial support front-loaded to the start of the apprenticeship in recognition of the low wages in the first few years. As at the end of March this year, more than 167,000 apprentices have taken up a trade support loan since the scheme was introduced in July 2014. That's a total of $1.5 billion paid in loan instalments to eligible apprentices.

These amendments seek to enhance access to income-contingent loans for apprentices and trainees under the Trade Support Loans Act 2014. These amendments will help more apprentices to meet their daily living costs as well as improve the administration of the scheme. I'll set out the amendments and what they'll do. They'll expand eligibility for the loans to include all Australian apprentices working in priority occupations, including those in non-trade occupations for the first time. This may include occupations in aged care, child care and disability care—three crucial areas in our economy. We'll rebrand the loan scheme from 'trade support loans' to 'Australian apprenticeship support loans' to reflect this expanded eligibility, and we'll improve flexibility to backdate trade support loan payments to provide immediate support to apprentices and avoid the potential for apprentices to miss a payment due to administrative error.

For many people, when you hear the word 'apprentice', your mind immediately turns to plumbers, sparkies, carpenters and such—what we sometimes call the traditional trades. However, we need to move away from thinking that apprenticeships are for traditional trades only. I'm not having a go at my sister the electrician, my nephews the carpenters or my nephew the plumber. It is 2023, and we need to realise help is required for people entering non-trade occupations such as aged care, child care and disability care. They deserve the same access to assistance as those typically male-dominated traditional trades. And how important are these jobs! These are the people who are caring for our children, our elderly and those with a disability—surely one of the most crucial things we can have someone do. So it is no surprise that many of these non-trade priority occupations are typically female dominated. As I said before, unlike the previous government, we support women in employment, and this change is expected to boost support for women's participation in those fields. This delivers access to additional financial assistance—no longer limited to trade occupations—and will provide ongoing flexibility for the program to support apprentices in industries when and where it is needed.

The priority list will replace the current trade support loans priority list to better align eligibility to occupations with an apprenticeship pathway in areas of identified current and future skills needs. The priority list will be kept current by continuing to be based on the latest Skills Priority List work, which has now become a part of the role of Jobs and Skills Australia. In updating the priority list, the minister will have the benefit of relying on the latest advice from Jobs and Skills Australia on Australia's current and emerging labour market and the skills most required.

These changes will mean that, amid rises in the cost of living, more people can access immediate financial support to help them complete apprenticeships or traineeships, leading to occupations in Australian workforce sectors that are currently experiencing skills shortages. This will help to address those shortages and deliver workers for a stronger Australian economy. The amendments align the trade support loan scheme with the Australian Apprenticeships Incentive System, which came into effect on 1 July last year.

This bill will also enable the backdating of payments to provide immediate support to apprentices where missed payments might have resulted from an admin error, as I mentioned earlier. Currently there is no discretion to provide backdated payments, so an apprentice who didn't receive a payment due to a simple admin error would just miss out. As anyone who knows apprenticeship wages, there's not much fat in the wages for an apprentice. This is not fair, and this bill will fix that problem.

In line with the existing trade support loan program, and to encourage completions, Australian apprentices who successfully complete their apprenticeship will continue to have access to a 20 per cent discount on the amount of the loan they need to repay. This incentive to complete the apprenticeship will continue under the more widely accessible Australian apprenticeships support loan scheme. It will encourage even more people to finish their apprenticeships. Sadly, for the past decade or so, they've been starting but not completing their apprenticeships. So all these reforms complement the establishment of Jobs and Skills Australia, which is the permanent, independent body responsible for providing advice to government to underpin our response to current, emerging and future labour market and workforce skills and training needs to improve employment opportunities and economic growth. This is important because, if you don't get that training right, productivity can be halted or can freeze.

Jobs and Skills Australia is a central part of our commitment to cement tripartism as the foundation for the VET system, driving a partnership approach to forecasting and planning for Australia's skills needs with governments, employers, unions and the training and education sector all working in the national interest. It's working closely with state and territory governments as well as employers, trade unions and training providers to ensure a shared understanding of the key issues facing Australia's labour market today and in the future.

Expanding eligibility for the new Australian apprenticeship support loans scheme will allow the government to leverage the expertise of Jobs and Skills Australia to identify those emerging skills needs and better target government assistance in a timely manner. Apprenticeships are the key to delivering the pipeline of skilled workers that Australia needs. However, we must lift that completion rate and increase diversity in our apprenticeship cohort to realise this skills pipeline.

These changes have seen consultation with both the Australian Taxation Office, who manage the loan repayments under the act, and the Australian Apprenticeship Support Network, our providers who support the delivery and administration of the apprenticeship support programs. Of course, this supplements all of the other work that the Albanese government is doing to meet the skills and labour shortages in Australia, including committing at the Jobs and Skills Summit to the reformation of the apprenticeship support system and committing, through the May budget, to a strengthened Australian apprenticeship support service delivery model that will place the apprentice right at the centre. It will rebalance non-financial supports over the life of an apprenticeship, strengthen wraparound supports and continue to build the skilled workforce that industry needs. These trade support loans amendments will complement our reform work and the Albanese government's focus on completions by providing another avenue of financial support to a broader range of apprentices and trainees. This will help more apprentices with cost-of-living pressures while they train.

Year-on-year completion rates have been in decline, and the apprenticeship system remains heavily gender biased, with women comprising only 31 per cent of all apprentices in training. I have a sister who is an electrician, and I remember when she was applying to be an apprentice that one of the old electricians said, 'You wouldn't be able to carry a large ladder across a ploughed field.' She said, 'Why would I want to carry a large ladder across a ploughed field? I'd drive it over in a ute.' She's now a brilliant electrician. So we know that there's some gender bias. In particular, women remain underrepresented in male dominated trades such as plumbing, carpentry and being electricians, where they make up just over eight per cent of all trade apprentices. It's also clear that current arrangements are not serving First Nations apprentices, whose overall completion rate is, on average, six per cent lower than other apprentices.

Despite there being a record number of trade apprentices currently in training, the proportion of apprentices completing their apprenticeship has been in steady decline since 2013. This is a trend we need to see improve, and these practical changes to financial support will deliver better outcomes for all industries and for the nation, both in traditional trades and in non-trade occupations. I commend the bill to the House.

Nola Marino (Forrest, Liberal Party, Shadow Assistant Minister for Education) Share this | Link to this | Hansard source

The coalition will be supporting these bills—the Trade Support Loans Amendment Bill and the Student Loans (Overseas Debtors Repayment Levy) Amendment Bill—as we've heard. They are sensible reforms which the coalition developed whilst in government, starting these reforms, as we've heard from previous speakers. I encourage all the great young people out there—and those of all ages—to take up apprenticeships, and I hope that these measures assist you in your efforts and help you to complete what you're doing. We have an enduring commitment to apprenticeships and training not just because of skills shortages but because apprenticeships have helped set up so many Australians for life. That early training has seen them go on and become very, very successful in life.

When we look back at our history in government during the pandemic, we made sure that we protected apprenticeships and apprentices with the wage subsidy measures and we supported jobseekers and young people to be able to get skills for the jobs of the future with low-fee or fee-free training through the JobTrainer Fund. That included 48,000 places in aged-care training, as well. We committed over $13 billion to the skills sector during the pandemic. It was very important that we retained the connection between apprentices, workers and employers at that time. We supported over 530,000 apprentices and trainees through those wage subsidies when the pandemic hit. That support was very significant, reaching over $7.9 billion. We delivered a record 240,000 trade apprentices in training, which was the highest since 1963, and we invested $2.4 billion to upskill apprentices in streamlining the new Australian Apprentices Incentive System.

That is just part of what we did during our time in government, particularly during COVID, but we also supported small businesses to invest in the skills of their employees and train new ones through the Skills and Training Boost, which was also very useful to small businesses and to apprentices and trainees. The National Skills Commission provided expert advice, and we created the National Careers Institute to improve careers advice across the tertiary sector. But we cannot underestimate the importance of apprenticeships and traineeships. As I said, we started these reforms in government. Like in the majority of Australia, skill shortages are a real challenge in my electorate of Forrest, in the south-west of WA, whether you're talking machinery operators, technical or trade roles, community and personal services, or retail and hospitality.

The Forrest electorate is in the top five electorates in the country in terms of the proportion of technicians and trade workers. The latest census figures show that more than 13,400 technicians and trade workers are in my electorate of Forrest. It's also the case that four of the nation's top five electorates for this category are actually in Western Australia, my home state. The very diversity of the economy in the south-west is reflected in the high number of people also working in community and personal services categories, in labouring, as machinery operators and as drivers. I am always inordinately impressed with the naturally talented, manually skilled young people, in particular, that I meet. There's nothing they can't fix and there's no problem they're not prepared to take on.

Over many decades, the businesses in the south-west have built their workforces through apprenticeships and traineeships—whether it's a multinational or right through to the smallest of small businesses engaged in any group training program, or just as an individual business. One of the largest in scale, in both the south-west and Peel regions, is Alcoa. I think they've trained more than 2,500 apprentices, trainees and graduates since they began operating in our part of the world.

There are other significant local businesses who are genuinely and continuously invested in training their staff. One that comes to mind is Piacentini & Son, a major mining contracting business in my electorate. They've got 63 apprentices across the trades of heavy diesel mechanic, the boilermaker-welder space, auto electrical and 240-volt electrical. They have seven dedicated trainers for their mobile plant operators alone. That's a massive commitment to training and developing their staff.

However, it is a real challenge for companies like Piacentini & Son. They make a huge commitment, but know they are going to lose a significant number of these very well trained people into the mining and resources sector. This is something that happens continuously in regional parts of WA. For those who are prepared to get involved in fly-in fly-out work there are certainly very attractive salary packages. It is a continuing frustration for the companies and small businesses in my region who are delivering so much of that high quality training to their apprentices and trainees. They need the people that they're training in their own businesses.

I also see companies like Simcoa, in my part of the world. They are a world class silicon producer. They have six apprentices covering the mechanical and electrical trades. The softwood sawmiller Westpine Industries has around 10 apprentices and trainees. A major local builder of nearly 60 years in business, Perkins Builders, with their head office in Bunbury and premises in Perth, have four apprentices in the carpentry trade, plus administration trainees.

I look at what this has done to the fabric of our communities, particularly in rural and regional areas. Even though we're now seeing some of the highest vacancy rates for apprenticeships, I look and see just what it's done to help our small regional communities. I look at a couple of young guys who started as apprentices in the building trade for a company called Newby Building Contractors in Harvey. They were brothers, Peter and Russell Willmott. They did their apprenticeships, and later their business became Willmott Constructions. They took on apprentices of their own, built some fantastic premises and did great work around the south-west, particularly around Harvey.

The value of the apprenticeship is that it sets you up for life. You'll see these young people often going on and starting or owning their own small business and becoming a key part of making sure that, in the regional and rural areas, we still have access to all the services and supports we need in our regions. We've got Jones Welding Solutions. Luke and Zane Jones have six apprentices in engineering and fabrication, which is what they do. They offer a 24/7 breakdown service for their customers. They've won so many small-business awards and electrical trades awards, because they look after their teams so well and do their jobs so well.

Then I see a young woman who came through, Ester Italiano, in Harvey. She started as an apprentice in the local hairdressing salon and now she owns that business, and she's employing others and providing apprenticeships. So there's this intergenerational work that goes on, starting with the first person who gives you an opportunity, even as a small business, as an apprentice. Nixon Electrics is another one that is intergenerational in my part of the world and is now run by David Faulkner. He and the Nixon Electrics crew have won a number of awards as well.

Down in Bustleton there's Ray Mounteney, who has a car dealership. He has a very long history in the industry. He has nine light-vehicle apprentices, right now, supplied by three different Group Training Organisations. He spoke about some of the challenges when you're a trainer of apprentices, the demands in his car dealership space of fast-moving technology and the requirement for ongoing training beyond that initial trade qualification, keeping apprentices, trainees and workers up to date.

Ray also touched on that constant loss of trades people to the mining sector. We often see this happening, in my part of the world, across the board. As well there is the cost to the business itself—in training their own apprentices, in the loss of productivity of the other skilled workers who are supervising, instructing and working with the apprentices, putting that time and effort in to help them be the best they can be. Often the auto industry is not necessarily viewed as a career or for potential development, when, in fact, it is.

There are many reasons why some businesses find it difficult to take on and train apprentices themselves. At the moment, with the constant increases in costs of inputs, the labour shortages and supply chain constraints this makes that even more challenging. So many small businesses are working overtime just to keep their businesses running. With these skills shortages, some of them don't have anyone in the business with the skills and time to support the training and manage all of the compliance issues. I know in Ray's business they are working very hard on a team-building approach, tracking and retaining people from a diversity of ages and gender, and creating the workplace that people want to be in, in that business.

I also look at the Harvey agriculture school in my patch. They offer a range of trades within that ag school, whether it's in agriculture, construction, metals, engineering or furniture. When I go to one of their graduations, these young people have often already been placed. They get a very good traineeship at the ag school and they become very attractive to the business sector and often find themselves employed before the end of their time. They develop those industry skills and experiences. They get that hands-on training. Through an apprenticeship, they can get their nationally recognised qualifications. When you're doing this sort of work, you're networking with the industry that you want to be engaged in from day one, and you're developing knowledge and confidence and that intergenerational transfer of skills.

I remember when my brother was a mechanic and worked in our little home town of Brunswick Junction. It was the mature-aged men, at that time, who had vast experience in the industry, who were so keen to pass on what they had learned over a lifetime to my brother, Lindsay, as an apprentice. He carried those skills with him into business, in the contracting, earth-moving and cartage sector. Such was his training that in later life he was able to build himself a fantastic dragcar, from the chassis up, and was able to do that quarter mile in under 6½ seconds.

There are so many job and life opportunities for people who take up apprenticeships. I want to encourage people who are considering this, even young people. In the rural and regional areas, there are some very, very good opportunities for young people and people of all ages. I encourage you to take up these opportunities, no matter what stage you are at in life, because whatever you learn through that apprenticeship in those early years will sustain you throughout your life and your career. I encourage anyone with an interest in this space or who is thinking that this might be for them to take up that opportunity and take on an apprenticeship. I'm sure the businesses will assist you to get you to where you need to be.

Dan Repacholi (Hunter, Australian Labor Party) Share this | Link to 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.

Helen Haines (Indi, Independent) Share this | Link to this | Hansard source

I rise today in support of the Trade Support Loans Amendment Bill 2023. This bill aims to expand the list of apprentices that are eligible for trade support loans. These loans provide almost $23,000 to an apprentice who is completing their qualification in a traditional trade. Apprentices who successfully complete their qualification receive a 20 per cent reduction in their loan obligations to further encourage them to finish their apprenticeship. This bill means that the list of occupations eligible for the loan will now be expanded to other areas where we're experiencing skills shortages—areas like early childhood education, aged care and disability care.

This type of support is so important for people who are getting trained to fill our workforce gaps. Data from the Department of Employment and Workplace Relations shows that recipients of these loans are more likely to complete their apprenticeship. Completion rates are about 10 per cent higher for those who've taken out a loan than for those who haven't. These loans help with the cost of living while people are on low pay at the beginning of their apprenticeships. Things like groceries, petrol, getting to work and paying rent are key cost-of-living issues. We know how hard it is for students to train or study and earn a living at the same time, so I support this bill as one step towards supporting people to get skilled up in the areas that are needed most.

Everywhere I go in my electorate of Indi, it is jobs and skills shortages that people tell me about, whether they are constituents from businesses, organisations, hospitality or whatever. Across the board in our regional centres, our bustling tourist hotspots and our small towns, employers are struggling to find staff. Job ads go unanswered or the staff available don't have the required skills. There are also notable times when employers find someone who's willing to take up a job but finds it impossible to find somewhere to live. This is happening again and again.

Workforce challenges in rural, regional and remote Australia are different to those faced in the metropolitan areas. In Indi the unemployment rate is below the already historically low national unemployment rate. People aren't talking to me about creating jobs; they're talking to me about filling jobs. The lack of workers is dampening our productivity. It's forcing restaurants to leave tables empty due to a lack of staff, or businesses to knock back clients because they know they can't fulfil orders. The quarterly update released last month by Jobs and Skills Australia found that skills shortages are particularly persistent in regional areas, more so than in metropolitan areas. JSA identified cooks, chefs, electricians and early childhood educators as some of the greatest areas of need. I hear about skills shortages in these important occupations all the time.

High-quality, accessible early childhood education and care is an essential service in a community where we want maximum workforce participation. For parents, it allows them to work, to train, to study—to open doors; for children, it keeps them safe and healthy and is crucial to their development. But in regional and rural Australia we are really struggling to find a childcare workforce. In Indi we've experienced the threat of closure in several small towns where the market is thin and the childcare workers are just so scarce. Each month, parents write to me about how hard it is to find a childcare placement for their child. They tell me this means they're delaying going back to work. Many of them are critical healthcare workers such as psychologists, doctors, nurses and pharmacists, not to mention logistics supply people and all the other people we have in our regions. The lack of available places is actually severely compounding the problem of essential worker shortages in Indi. In Wangaratta, some children have been on the waitlist for 18 months along with 100 other families. In Bright, there's a 70-child waitlist. In Wodonga, families have their children on waitlists at 10 or more centres, and they still can't get a spot. Working parents are forced to quit their jobs—I'm not exaggerating—or reduce their hours because there are just not enough childcare places. This is simply because we do not have enough educators. One educator in Wangaratta who has worked in the sector since 1994 tells me she has never seen the level of educators so low.

This bill will help support people studying to be early childhood educators—the childhood educators we so badly need—but so much more needs to be done in addition to that. A longer-term agreement aimed at driving sector reform and supporting women's workforce participation is still being negotiated by the government, and I sincerely hope that growing the childcare workforce is directly addressed by this agreement. I also call on the government to fully implement the National Children's Education and Care Workforce Strategy, which seeks to address recruitment, retainment and sustainability of the childcare workforce. I also welcome the upcoming comprehensive review by the Australian Competition and Consumer Commission on child care. I look forward to reading their findings and recommendations and working with the government to see them fulfilled. I am looking at the minister right now, and I really want to work with you on this to solve this intractable problem that we have right now.

Like early childhood educators, we also have a shortage of aged-care and disability care workers. Health care and social assistance are actually the largest occupation in my electorate of Indi, hiring over 11,000 people, but between June 2020 and March 2023, job vacancies for carers and aides went up a whopping 412 per cent in my electorate—a staggering figure of 412 per cent. The workforce shortages in this area are stark. Across Indi, aged-care facilities tell me how incredibly hard it is to attract the much-needed workforce just to keep their doors open. Without an adequate workforce, facilities go under, and the consequences are felt right across the community. A major employer is lost, a skilled workforce is gutted, and families don't have a facility nearby to care for their mother, father, husband, wife, friend, neighbour or loved one.

The disability care workforce in regional Australia is also lacking. The NDIS National Workforce Plan released in 2021 projects that regional Australia will need an additional 90,000 workers by 2024 to meet demand, but it acknowledged that longer vacancy times and smaller applicant pools make it particularly challenging to attract workers into regional communities. So we need to continue providing incentives for people to train in our caring professions, and I look forward to working more with the Minister for Skills and Training about what we can do to address the severe lack in such critical occupations in our rural, regional and remote areas in particular.

After health and social assistance, construction the next major employer in my electorate of Indi. According to statistics provided by the Master Builders Association, in Indi we have over 7,000 people employed in building and construction. According to the Victorian Skills Authority, construction is also our third-highest area for additional workforce, requiring an additional 1,100 full-time equivalent workers over the coming years. Trade support loans were originally intended for technician and trade apprenticeships like plumbers, builders and electricians. I support the bill's expansion of who can access support loans beyond these traditional areas, but let's not forget how critical supporting apprentices in these trade areas is. With demand for more housing like we have not seen for decades—maybe not since the Second World War, actually—these plumbers, builders and electricians are going to be the ones that build the houses we desperately need for other essential workers like childcare workers, doctors, nurses and allied health professionals. Unfortunately, we are experiencing a shortage in trade skills too. One builder in my electorate says that he's never seen such a shortage of skilled practitioners in his 40 years of industry experience. He says that, in the regions, this shortage is acute and is absolutely directly affecting their capacity to address the housing crisis.

I'm pleased that the government is carrying forward the previous government's budget measure that provides additional funding to increase the list of apprentices eligible for loans. We can't scale back support for apprentices in our trade sectors at a time like this, and I'm glad that the government has recognised this. But, like all student loans right now, these Australian apprenticeship support loans are also facing a 7.1 per cent indexation. This is the highest indexation rate in more than three decades. A HECS loan will go up by an average of $1,760 a year with this indexation, and many in my region are now looking at their qualifications as, indeed, a lifetime debt burden.

Under this bill, people studying early childhood education, disability and aged care—people who are mostly women—will benefit most from the expanded student loan plan. But it will mean that they, too, will be saddled with another debt, and this debt burden is particularly hard right now when we're facing a cost-of-living crisis. The government has powers to fix these crippling student debts. I urge them to do so.

I recognise that the government is investing in other skills and training opportunities by delivering, since January, 180,000 fee-free TAFE and vocational education places. Last month, the government announced that 33 per cent of these places taken up so far are in regional and rural areas. I am so pleased to read that statistic. Again, we know the workforce gaps in regional Australia are worse than in urban areas. The uptake of these TAFE places is further evidence of this.

In my electorate, Goulburn Ovens TAFE—or, as we call it, GOTAFE—in Wangaratta and Wodonga TAFE are training people up to work in our local construction and electrical businesses, aged-care homes and childcare centres. Wodonga TAFE CEO Phil Paterson says that fee-free TAFE has been an outstanding success for local students embarking on new careers, returning to work or making a career change. He says that fee-free TAFE and the expansion of trade support loans remove barriers to locals pursuing in-demand careers, like early childhood education and disability care.

While I'm pleased about the government's increased support for vocational training, like we see under this bill, we need to do a whole lot more to keep supporting our TAFEs. Phil Paterson observes seeing more and more students without the numeracy and literacy skills to complete vocational education. We need to adequately fund our TAFEs that are providing this type of vital enabling education and training. We also need to see more support to upgrade TAFEs infrastructure. We simply can't take on skills developments in rural and regional TAFEs for these jobs while we have 1970s infrastructure. When I visit these TAFEs, as I do very regularly, I see passionate educators and dedicated students. I see a lot of hope, but I also see ageing infrastructure.

Wodonga TAFE is already making a great start on upgrading infrastructure. Only last week I attended the opening of their newest facility, the Trades Training Centre, funded by both the Commonwealth and the state governments. This impressive multilevel building on the Wodonga TAFE campus incorporates state-of-the-art classrooms, the latest specialist equipment and hands-on practical workspaces to train the next plumbers, carpenters, cabinetmakers, electrotechnologists and others. Wodonga TAFE also has a fantastic partnership with the Australian Defence Force to train defence personnel in these vital trades. They're benefiting from these new facilities. So I congratulate CEO Phil Patterson, board chair Allison Jenvy and all of the board and staff on this incredible achievement. I hope to see similar infrastructure built right across regional areas into the future.

Jobs and Skills Australia, or JSA, are going to be a critical part of advising government on future ways to build and support our workforce. It will be advising government on which occupations should be eligible for the Australian apprenticeship support loans. I was very pleased to work with the Minister for Skills and Training to amend the JSA bill to ensure that one of JSA's functions is to analyse skills and workforce needs in regional, rural and remote Australia. When JSA's work becomes publicly available, I will be closely following what recommendations it makes to government to address the workforce needs, specifically in regional Australia. I'll make sure the government continues to take up these JSA recommendations so that we can hopefully start to see an improvement in regional workforce shortages.

I support this bill as a measure towards helping people complete their qualifications in the areas where we need them most, but we can't lose sight of the unique needs and opportunities in regional Australia in developing labour markets, skills and training needs. In Indi we are passionate about developing the workforce for the future. I speak to employers, educators, apprentices, trainees, young people who are starting their careers and older people who want to rejoin the workforce. Let's keep working together, let's collaborate, let's be clever and let's make sure that we support these people to get the skills and qualifications they need and we need.

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

I'd like to thank the member for Indi for her contribution to this debate. As I was sitting here listening to what she was talking about, it struck me that what she's really talking about is the interconnectedness of all these issues, particularly for rural and regional Australians, whom we both have the great privilege of representing—I in Tasmania and she in Indi. Pay, conditions, access to amenities for partners and children, telecommunications, housing and opportunities are interconnected issues that require a range of policy responses to address. For example, you can't get nurses in remote areas if they can't get internet, because they want to be able to watch the shows that they enjoy and also stay connected to family, such as by catching up with the kids who may be living in the city while they're working in the bush. It's things like that that the government is cognisant of and is addressing—things like fee-free TAFE, which I'm pleased the member for Indi acknowledged. She's given feedback on how well it's going. It's a terrific endorsement of the government's policy, and I thank the Minister for Skills and Training for leading this. Four hundred and eighty thousand Australians are taking advantage of fee-free TAFE. The Housing Australia Future Fund, which we're still hopeful of getting a solution on in the Senate, will deliver 30,000 homes across Australia over the next five years. On regional internet rollout, the minister's doing a terrific job getting regional internet rolling out. And, of course, there is the 15 per cent aged-care pay rise that the government announced in the budget. It's all interconnected.

I'm on my feet today to talk about another terrific endorsement. We are talking about the Trade Support Loans Amendment Bill 2023, which will expand access to income-contingent loans for Australian apprentices. This is a bipartisan initiative, so I thank the opposition for their support for this. The bill broadens the eligibility criteria for trade support loans, making the system fairer and more inclusive by addressing key issues and decision points. In doing so, we foster a stronger apprenticeship system that better supports apprentices across various occupations and helps bridge that national skills gap that we hear so much about. It's something that will benefit apprentices across Australia, especially in my electorate.

This bill extends the eligibility for income-contingent loans to all Australian apprentices working in priority occupations, including those in the non-trade care sectors such as aged care, child care and disability care. We've said it before and we'll say it again: there is a tsunami of need across these three critical areas—aged care, child care and disability care. We desperately need workforce in these areas, particularly in rural and regional Australia. There are great opportunities out there, but it must be said that the United Workers Union did a survey recently. They had 7,000 respondents to this survey of their members in, I think, early child care—early learning I think it's called now, and the minister, I'm sure, will correct me—

Anne Aly (Cowan, Australian Labor Party, Minister for Early Childhood Education) Share this | Link to this | Hansard source

Early childhood education.

Brian Mitchell (Lyons, Australian Labor Party) Share this | Link to 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.

Aaron Violi (Casey, Liberal Party) Share this | Link to this | Hansard source

I rise to speak on the Trade Support Loans Amendment Bill 2023. It's an important bill, because apprenticeships and traineeships provide hands-on training, equipping individuals with practical skills and knowledge that are essential for specific industries. By focusing on skills development, apprenticeships create a highly competent workforce that will meet the evolving needs of industry, fostering innovation and productivity. A skilled and adaptable workforce contributes to economic growth. By investing in apprenticeships and traineeships, Australia enhances its human capital, which in turn attracts investment, stimulates innovation and fosters business growth. This leads to increased productivity, improved competitiveness and a stronger economy overall. For these reasons, the coalition will be supporting this bill.

Essentially, this legislation amends the Trade Support Loans Act 2014 to expand the program, which is currently available only to apprentices in priority trade occupations. These reforms will mean the program will now be available to apprentices and trainees in a broad range of priority occupations, including non-trade occupations such as aged care, disability support and child care. The loans provided will empower these individuals to pursue their trade pathways without being hindered by financial constraints. Easing the burden of up-front costs will open doors to countless opportunities and foster a more inclusive and diverse workforce.

In true Labor style of renaming successful programs, this program will also be renamed 'Australian apprenticeship support loans'. The program aims to increase completion rates among Australian apprentices in priority areas by providing them with financial support for their cost of living and learning while undertaking an apprenticeship. This is achieved by offering concessional income-contingent loans, up to a maximum of $22,890, which are paid back when the taxable income of the apprentice reaches the repayment threshold. For the 2022-23 income year the compulsory repayment threshold is $48,361. These are sensible reforms which the coalition developed while in government.

This legislation will amend the act to empower the minister to determine, having had regard to any relevant advice given to the minister by Jobs and Skills Australia, a new Australian apprenticeships priority list. And it amends the act to provide that a qualifying apprenticeship is, among other things, an apprenticeship through which a person is undertaking a qualification that leads to an occupational qualification specified on the Australian apprenticeships priority list. These changes will mean that the skills minister can expand the program's access to people who, through their apprenticeship or traineeship, are undertaking qualifications that lead to occupations experiencing skills shortages, such as occupations in the aged-care, disability care and childcare sectors. These are sensible changes to align apprenticeships with industries where more workers are needed.

Like many Australians, apprentices and trainees are doing it tough right now. The prices for their groceries, their fuel and their electricity are all going up but their wages aren't. Enabling more students to access this support will be critical to more apprentices completing their studies. Despite what those opposite like to claim, the Liberals and Nationals invested record amounts into the Australian skills system, which delivered the highest number of apprentices on record. During the pandemic, the coalition ensured apprentices were protected with a wage subsidy measure and supported jobseekers and young people to get skills in the jobs of the future with low or fee-free training through the $2.1 billion JobTrainer Fund. JobTrainer created around 478,000 training places in areas of skills need, including 48,000 places in aged-care training.

The coalition committed over $13 billion to the skills sector, since the pandemic began, including a record $7.8 billion in their final financial year in office. We saved more than 530,000 apprentices and trainees through our wage subsidies, announced when the pandemic hit, with total pandemic apprentice wage subsidy support reaching over $7.9 billion.

I was fortunate recently to visit Yarra Ranges Tech, a great institution based in Lilydale, out in the Yarra Valley. They support trainees, working with schools and those who the traditional school system doesn't work for. They bring them into that system. They have a wonderful Taster program, where students spend the first year trying different trades and things, like cooking. I saw those young people and spoke to them. For them to be able to find a real passion and dignity of work through those trainee programs is really important. That's why we need to continue supporting apprentices. There's an impact on the individual, society and, ultimately, the economy.

The previous coalition government invested a further $2.4 billion from 1 July 2022 to upskill apprentices in a streamlined new Australian Apprenticeships Incentive System. The new approach focused on boosting completions, to get more apprentices through their studies and into the workforce. This put in place subsidies for employers of 10 per cent in the first two years of hiring a new apprentice and a further five per cent in the third year. Apprentices also received up to $5,000 in direct support payments to help them with the cost-of-living challenges.

We supported small businesses, to invest in the skills of their employees and train new ones, through the Skills and Training Boost. We established the National Skills Commission to provide expert advice and national leadership on the labour market, current and future skills needs and workforce development. We also secured agreement with the states and territories to overhaul Australia's VET system. The reforms were aimed at ensuring courses and qualifications were driven by and better met the needs of industry and students.

It's so important to always connect what businesses need with what apprentices need. That is what this bill does and is why it has bipartisan support. On this side of the House we value and acknowledge the crucial role that apprentices play in Australia's economy, contributing significantly to its growth, productivity and competitiveness.

My electorate of Casey is unique. It starts from the end of the suburban Melbourne fringe and goes into the Yarra Valley with its many farmers. Master Builders Australia has Casey as the highest electorate, as a percentage of workforce, for trades. We have a lot of tradies but we also have a lot of nurses, aged-care workers and early childhood workers, so we know firsthand the opportunities that come. We also have a strong agricultural and horticultural industry. Being able to connect apprenticeships, particularly for horticulture, and showing young people the opportunities there is so important.

These young people are really the backbone of the economy, out in Casey, and we're creating opportunities for them. I recently announced the 2023 Casey Apprentice and Trainee Awards. We're calling for nominations of diligent and hardworking people in Casey. Our local apprentices and trainees will be the backbone of our trades, small businesses, childcare and aged-care sectors into the future. It is so important that we recognise these young Australians working so hard to make a better life for themselves and their families. So if you know someone who you think is a great apprentice, please nominate them via my website. It could be any workmates, employees, friends or your own children or grandkids you think deserve recognition. It's so important that we recognise these young people who are doing great work in our community.

As I said, agriculture is a big part of the Yarra Valley and a big employer of apprentices in our community, and it would be remiss of me, as we speak about agriculture, not to take a moment to pay tribute to Gordon Chapman—an amazing person from the Yarra Valley who, sadly, passed away last week. He was known to many. Gordon was an institution in the farming community in the Yarra Valley. He was a trailblazer of his time, having introduced the concept of a 'U-pick' farm to Australia after visiting the USA in the 1970s. Gordon ran Chappies U-pick, growing raspberries, blackberries and cherries among other fruit. He leaves a legacy in the Yarra Valley as a well-respected, hard-working, giving and valued member of our community, particularly in the communities of Wandin and Silvan.

Gordon and his family made a significant contribution to our community, including through his involvement with the Mont De Lancey homestead. I was very fortunate to catch up with Gordon at the 30th anniversary for Mont De Lancey just three or four weeks ago, and he was in fine spirits, cracking jokes, having a laugh and owning the room as only Gordon Chapman could. It was wonderful that I got some time with him there and also on Anzac Day when, despite being aged in his 90s, he was able to attend the Wandin ceremony. It was wonderful to see him. He was also a stalwart of the Liberal Party, having been a member since 1969. He provided me with great support and friendship through all my time in the Liberal Party since I joined as a volunteer over a decade ago. There was always a kind word. He knew my family, who are also in farming, for decades, so it was wonderful to have his support as I joined the party and during my journey to becoming the member for Casey. I send my love and support to his family, who I know are doing it tough, but we take comfort that Gordon is now with his beloved wife, Linda. Rest in peace, Chappie. I'll miss your counsel, your frank advice and your sense of humour.

Some stakeholders have raised concerns about the consultation process which the minister's office conducted in regard to the bill. However, they remain broadly supportive of the passage of the legislation. Stakeholders have noted that the minister's office did no external consultation whatsoever. Indeed, the government's explanatory memorandum seems to admit that they did no further consultation and have broadly accepted the coalition's reforms without amendment—except for the obligatory name change, as with all good legislation from this government that is based on the great work of the coalition. If you don't change the name, you can't take credit for the work of the previous government. So I am grateful for the government's acknowledgement that our skills policies were working, and, as I said, the government must think so considering they have taken our policy and decided it was so good that no further consultation was necessary. They were able to do that because of our extraordinary work in the skills and VET space. This is a strong record to stand on, as Labor seems to be doing, and we will support them, as we are with this legislation, when they bring good policy forward.

It is so important for the individual that we support apprentices, because a job for a young person provides so much more than a wage. They develop so many of the life skills that will set them up for success. It's really important that we acknowledge that, while there's a lot of conversation about higher education—and higher education is important; we need to continue to support it—it's not for everyone. Apprenticeships are a way for those who aren't suited to higher education to have an opportunity to learn, grow, develop and become great members of our society. Apprentices and trainees are vital to Australia's economy due to their role in developing skills, ensuring a supply of skilled workers, staying relevant to industry needs, providing career pathways, driving economic growth and delivering social benefits. Investing in these programs is investment not only in the individual but also in the nation's future prosperity as a society and in ensuring we have a strong economy moving forward. So I commend this bill to the House.

Anne Stanley (Werriwa, Australian Labor Party) Share this | Link to this | Hansard source

I rise to make my contribution on the Trade Support Loans Amendment Bill 2023 and the Student Loans (Overseas Debtors Repayment Levy) Amendment Bill 2023. Australians across the country do not need to be told that there is currently a skills shortage, because every day they see it and feel it. Whether it's a call to a plumber or blacksmith or as simple as going to the butcher, Australians see that there are simply not enough workers in everyday services that we used to be able to take for granted. The national Skills Priority List now stands at 286. That's 286 occupations that are not meeting the demand, in part due to lack of workers. Nurses, aged-care workers, mechanics, early childhood educators and carpenters are among the occupations on that list. Not for a second can we imagine a functioning society without them. Who do we expect to take care of us when we're older, educate our children or ensure that we have a roof over our heads?

The Albanese government takes seriously the challenges of the skills shortage because, when skills are in short supply, it inhibits economic growth and impacts the services that Australians most rely on. You simply can't hire more carpenters if those carpenters don't exist. The skills shortage can't be solved by the market alone. Government must play a role in guiding and investing in Australians and their skills. The Albanese government said we would establish a permanent body called Jobs and Skills Australia. That's exactly what we've done, because we are a government that keeps our promises, ensuring that we have the independent advice we need to address the challenges that are before us. We said we would provide fee-free TAFE places, and already almost 150,000 students have enrolled in the 180,000 fee-free courses on offer this year. Only recently we announced an additional 300,000 places for the 2024 to 2026 years. Our government is also funding an additional 20,000 university places this year and next year. These are practical policies that don't just fix the microeconomic issues facing us but also help to upskill and train Australians for better, more secure and more well-paying jobs, because investing in Australian people is what Labor governments do and it's what's required of us for our community.

These bills are a continuation of our investment in Australians. Trade support loans are there to help Australian apprentices meet their everyday expenses. They help support them with interest-free loans as recognition of the low wages in the first few years of an apprenticeship. As of 28 March 2023, over 167,000 apprentices have taken up trade support loans since the scheme's establishment. However, the trade support loans scheme has a significant flaw. It does not acknowledge those who are in an occupation listed as a priority occupation but are non-trade workers—that is, it excludes many essential workers in the care economy: aged care, disability care and early childhood education. These are undervalued and heavily female dominated sectors. This legislation seeks to fix that. It replaces the trade support loans priority list with a new Australian apprenticeships priority list that will no longer be limited to trade occupations and will provide ongoing flexibility to the program. It opens doors for thousands of those in the care sector to access monthly loans to help with the cost of living. Year on year, completion rates have been in decline because apprentices and others have not been able to finish their courses. Reversing this trend is essential for the development of meaningful career pathways for Australians and also for the health of our economy. Those who participate in this scheme will be eligible for a 20 per cent discount on their loan on completion of the apprenticeship, an incentive to encourage apprentices to finish their training and go on to be useful parts of our economy.

The Albanese government will continue to strengthen the financial and non-financial supports available through the entirety of the apprenticeship and will work with industry and unions through the JSA to ensure that services are meeting their needs. Our success is built by workers and their skills, and, as any good government does, the Albanese government is investing in Australians. That's because, in uncertain global economic times, this investment safeguards Australia and strengthens the resilience of our country. I thank the honourable minister for the work he's done in supporting workers in their pursuit of greater skills and training.

As a representative from a diverse and working-class community, I know the important role that tertiary and vocational education systems play in obtaining well-paid and secure work. Werriwa has two TAFEs—one in Miller and one at Macquarie Fields. Both provide quality training in a vast number of areas. Both these facilities provide quality education, and I'm certain that many students at those TAFEs will benefit from this bill and what it seeks to do. I commend the bills to the House.

Dai Le (Fowler, Independent) Share this | Link to this | Hansard source

I rise to speak on the Trade Support Loans Amendment Bill 2023 and the related bill. Following the federal budget release, I have been highly vocal about the need to ease pressures on students with HECS-HELP student loans, especially with the 7.1 per cent indexation increase. This is such an important issue that affects the young people in my electorate of Fowler and probably also across other low socioeconomic, disadvantaged electorates. These students are struggling to meet their day-to-day expenses and are now facing further financial hardships. As you would have seen in various media reports, student debt indexation is projected to have a lifelong impact on students' borrowing capacity, as student debt will be factored in when applying for any loans with financial institutions. This would mean that your children, nephews, nieces, siblings or cousins may be crippled by further debt following the 7.1 per cent indexation. This percentage of government-initiated indexation is much higher than the wage growth of three to four per cent that many Australians have received right now. Therefore, I move the amendment circulated in my name:

That all words after "That" be omitted with a view to substituting the following words:

"whilst not declining to give the bill a second reading, the House:

(1) acknowledges that Australia is experiencing skills shortages, and measures must be implemented to support these in demand occupations;

(2) welcomes the Australian Apprenticeships Priority List to be expanded to capture critical non-trade occupations (including childcare, disability and aged care sectors);

(3) notes that unprecedented high indexation on loans applicable under the Australian Apprenticeships Priority List may be a deterrent for disadvantaged individuals pursuing the high-demand occupations; and

(4) calls on the government to revert indexation of Australian apprenticeship support loans back to the 2022 rate of 3.9% to allow disadvantaged apprentices to work full time, pay down their loan and meet the cost of living needs".

Naturally, I'm concerned with some of the unintended consequences of this loan. Vocational education and training are instrumental to Australia's growing economy, and supporting the development of these skills through our legislative bills is critical. Nearly 13,000 people in my Fowler electorate are currently in some form of tertiary education. Almost 12 per cent of employed people aged 15 years and over are currently in technician and trade work. The introduction of the trade support program in 2014 has allowed for Australian apprentices, including those in Fowler, to obtain a loan of up to $22,890 in total for the 2022-23 year, paid monthly in arrears to meet everyday living costs. Branded as interest-free loans, apprentices are not required to repay the loan until they are earning an income above the minimum repayment threshold of $48,361, as of this year. Apprentices who complete their apprenticeships will receive a 20 per cent reduction on the trade support loans.

At face value, this appears enticing to apprentices in trades to assist with the growth of in-demand occupations. In practice, however, there are some shortcomings with this piece of legislation that I'm not convinced are being holistically addressed in this bill. I have concerns that these trade support loans, which are now being revamped as the Australian apprenticeships support loans, could trap more hopeful students in further debt. After unpacking this bill, I understand that it will have the following key effects if implemented: It will lapse the TSL priority list and replace it with the Australian apprenticeships priority list to expand eligibility to other high-priority occupations that are non-trade, such as aged care, disability, child care, nursing, personal assistants, therapy et cetera. The minister will be empowered to have regard to any relevant advice by the minister responsible for Jobs and Skills Australia for the AAPL. I acknowledge that these developments will bring forward some positive changes, such as better access for women who want to pursue non-trade occupations, and I applaud the government for including women in this bill. Given the fluidity of this list, though this change, I hope this will keep Australia in check as our country and economy evolves and our priorities change.

I understand that the minister is not prevented from having regard to other advice. So I urge the minister to actively obtain advice from fellow MPs across the entire political spectrum, especially those with low-socioeconomic electorates, to ensure that the occupations are aligned with not only the needs of Australia's economy but also will pave a pathway for disadvantaged communities to gain meaningful and fruitful employment.

However, this bill is a double-edged sword. Whilst I welcome the expansion of the loans to other critical occupations, specifically in the childcare and aged-care sectors, I ask the government to consider whether there are sufficient incentives to encourage individuals to engage in the Australian apprentice support loans and make this bill a success. According to a recent report by the Australian Financial Review, about one billion dollars are outstanding in trade support loans, and one in every two trade apprentices drop out before completing the course. This is not a small figure. Despite the incentives of the discount of 20 per cent on completion, not all individuals are inclined to finish their apprenticeships, as other jobs may actually pay more.

The same article reports that first year apprentices and trainees can earn as little as $13 an hour, totalling $520 a week. The current cost-of-living pressures prevalent in Australia, particularly experienced within the Fowler electorate, may further deter individuals from wanting to enter the professions in demand because of the earnings. People have families to provide for, and it may not be realistic to survive and live off the poverty earnings of just $520 a week, especially in major population centres and including the increasingly high rents that we're experiencing at the moment. Just consider food expenses. A bag of sliced wholemeal bread was $1.80 in 2018 and now is a minimum of $2.70 depending on the brand of bread. Let's consider the commuting cost for apprentices to travel to and from work. If an apprentice were to travel from Cabramatta Station to Central Station, it's about $3.79 one way and a total of $7.58 return. The apprentice commutes five days a week, which would equate to about $37.90. While the difference may not appear blatantly drastic, every cent adds up for families who are disadvantaged—not to mention the amount of tolls and the cost of fuel for those who drive.

Whilst these loans are branded as interest free, they do not actually come for free. The Australian apprentice support loans under this program are still indexed according to the Consumer Price Index to meet the real market value of the loan. This is essentially the same issue as other accumulated study and training loans. If you consider this against the cost-of-living crisis, this is an obvious issue for those who are disadvantaged. One young local professional told me that her HECS debt has increased by $4,400 just this year, yet she only entered the workforce four years ago. After sharing her experience to other young hopefuls in her community, most are deterred from studying her profession given the accumulated debt and indexation. This is no different to other hopeful Australian apprentices looking to enter their chosen professions, only to be disillusioned by the anticipated debt and indexation. To think how much this will build up year on year is unfathomable. Will our young people and future generations be able to break the debt cycle?

I ask the government, especially its members from Western Sydney and those representing low-socioeconomic electorates: how can you realistically slug students and apprentices with an index increase of seven per cent plus, which is much higher than the current average wage increases? At a time with soaring interest rates and stubbornly high house prices, how can aspiring first home buyers take out home loans when their borrowing capacity is impacted by the dark mark of a bigger study and training debt? Our youth are the future of Australia. The people that will be assisting with rebuilding the economy are our future. By not addressing the indexation within this bill, we are continuing to handicap the brightness of their potential.

For a Labor government that in its history proudly announces the Whitlam government's introduction of free education, this current indexation is certainly a vast step backwards. History will judge this. It is certainly not in the tradition of compassion and support that is needed in this current cost-of-living crisis. If we cannot revert to 1974 and provide free education then we should, at the bare minimum, do something about indexation for students and apprentices. Who would not be deterred when they hear that they should expect 7.1 per cent indexation just off this year for entering a profession that they are passionate about and which could be one that Australia needs to drive the economy? It is simply not enough that we are opening the categories of occupations eligible for these loans and offering a 20 per cent discount on completion.

While speaking with a few aspiring early childhood educators within Fowler, it was noted that they would prefer, at the minimum, the indexation to revert to the 2022 rate of 3.9 per cent for loans under the Australian apprenticeship support loans scheme, and an increase of the discount to reflect at least a quarter of their loan amount. In my view, this is a more attractive incentive which should be drafted into this bill. It's more in line with the current economy and living standards.

If this bill is intended to create better access and opportunities, especially for women entering the care sector for employment, the bill must be curated with this intention at the forefront. The government can do much more to support individuals who are seeking to rely on this loan and enter the demand-labour workforce. Therefore, I call on the government to consider reverting indexation for Australian apprenticeship support loans and indexation back to the 2022 rate of 3.9 per cent and to freeze it at this rate, perhaps for at least three years, upon earning the minimum repayment income. This would allow disadvantaged individuals to work full-time, pay down their loans and meet the cost-of-living crisis in their living needs.

I would like to take this opportunity to thank Senator Mehreen Faruqi, who has put the interests of apprentices and students at the forefront since the announcement of the indexation. While it's a long conversation on reducing indexation, and perhaps abolishing it altogether, I look forward to seeing the future changes that may be proposed in this area of concern. We need to give young people a kickstart in their careers, beyond just a loan. There should be a safety net where they know they can engage in a demanding profession without being hit by a mountain of incrementally growing debt.

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

Is the amendment seconded?

Monique Ryan (Kooyong, Independent) Share this | Link to this | Hansard source

I second the amendment and reserve my right to speak.

Sam Lim (Tangney, Australian Labor Party) Share this | Link to this | Hansard source

I want to give my support to the Trade Support Loans Amendment Bill 2023, a life-changing piece of legislation that amends the Trade Support Loans Act 2014. It has the aim of enhancing access to income-dependent loans for apprentices and trainees across our country. This bill holds the power to shape the future of our nation, workforce and economy. These amendments are not merely minor adjustments, they are a big step towards a fairer and more inclusive future for our apprentices and trainees. By expanding eligibility for these loans, we can provide much-needed support to those who strive to make meaningful contributions to our workforce.

As we are all aware, our country is currently facing significant challenges, with shortages of skills and labour across industries that are vital to the health and wellbeing of our fellow Australians, and the prosperity of our economy. These shortages have not gone unnoticed, and it is our duty to find effective solutions that address this pressing issue. This bill seeks to do just that by introducing measures to facilitate the expansion of the longstanding trade support loan program.

We can provide much-needed support to apprentices, and, what's more, these amendments will ensure that loans become available to apprentices and trainees in priority non-trade sectors for the first time, including those in female dominated apprenticeships. By making these loans accessible to female apprentices, we can break down barriers and empower women to pursue careers in fields traditionally dominated by men. This not only enhances gender diversity but also brings fresh perspectives and skills to industries that desperately need them.

Under this bill, the Trade Support Loans Act will be amended to ensure that apprentices and trainees in priority occupations, including non-trade occupations, can benefit from these income-contingent loans. This expansion of eligibility marks a significant milestone as we embrace apprenticeships in sectors such as aged care, child care and disability care, acknowledging their important role in our society. To reflect this expanded eligibility and improved flexibility, we have rebranded the loan scheme from trade support loans to Australian apprenticeship support loans. This change highlights our commitment to being inclusive and recognising that apprenticeships extend far beyond the traditional trades. By expanding the eligibility of all these loans, we can provide much-needed support to those who strive to make a meaningful contribution to our workforce. It demonstrates the Albanese Labor government's understanding that all apprentices, regardless of their chosen occupation, deserve equal opportunity for success.

In addition to expanding eligibility, these amendments also seek to improve the administration of the scheme. We understand that apprentices face various challenges, including meeting the daily cost of living. These amendments address this concern by providing apprentices with the necessary support to meet their financial needs while pursuing their training. The available loan amounts are tapered over the life of the apprenticeship in recognition of the lower wages in the first few years of training.

Furthermore, the bill includes provisions to backdate trade support loan payments. This measure is designed to provide immediate support to apprentices and prevent the potential for them to miss payments due to administrative errors. We recognise the importance of timely and accurate support and we are committed to ensuring that our apprentices receive the assistance they deserve when they need it most. By enhancing access to income-contingent loans, improving administration and expanding eligibility, we are creating a more supportive and nurturing environment for our apprentices and trainees which will contribute to the chances of them succeeding and completing their training.

We must acknowledge the importance of investing in our future workforce. By providing adequate support and resources to apprentices, we are laying the foundation for a prosperous and thriving nation. We are not only empowering individuals to achieve their full potential but also to strengthen our economy as skilled professionals contributing to productivity and economy growth.

As I stand before you to discuss the Trade Support Loans Amendment Bill, I feel compelled to share a personal story that demonstrates the transformative power of training and education. Like many of you, I have experienced firsthand the life-changing impact that comes from acquiring new skills and knowledge. My journey began years ago when I embarked on a quest to learn English at my local TAFE. As a new migrant with a family to support, I knew that, for me to get a job here in Australia, I needed to learn the English language. It was a humble beginning, but it laid a foundation for a path that would shape my future. With newfound language skills, I pursued training in typing and basic computer skills.

These seemingly small steps propelled me forward, equipping me with the tools necessary to embark on a career that I have long dreamed of—a career in law enforcement. Through dedicated training and unwavering determination, I became a police officer, serving the community for more than 15 years. From the streets to the police station, I witnessed firsthand the critical role that skill development plays in fostering safety, security and justice in our society.

My journey within the police force was not without challenges, but it was through ongoing training and professional development that I was able to advance my career from a probationary constable to a sergeant. I had the opportunity to lead and inspire others, working collaboratively to make our neighbourhoods safer and more resilient. Now, as a member of this esteemed parliament, I stand before you a testament to the life-changing power of training and education. My journey, which began with English language courses at TAFE, led me to this moment, a moment when I have the privilege to support an initiative such as Trade Support Loans Amendment Bill.

I share this personal experience not to boast but to emphasise that training and education have the power to shape lives, create opportunities and drive progress in our communities. The Trade Support Loans Amendment Bill aims to do just that, to provide Australian apprentices and trainees with the resources to support their needs to succeed in their chosen careers. It is a bill that understands the transforming nature of training, as it expands access to income-contingent loans and ensures fairness across a broader range of occupations. The Albanese Labor government is sending a clear message that apprentices' and trainees' contributions to our society are valued and that we are invested in their success.

In closing, I urge each and every one of you to support the Trade Support Loans Amendment Bill 2023. Let us come together to empower our apprentices and trainees, irrespective of their chosen occupation, and provide them with the necessary tools and opportunity to thrive. By doing so, we not only shape the lives of individuals but also ensure the prosperity and wellbeing of our country.

Monique Ryan (Kooyong, Independent) Share this | Link to this | Hansard source

Today I am pleased to second the amendment moved by the member for Fowler and to speak to the Trade Support Loans Amendment Bill. Trade support loans were introduced in July 2014 to encourage more young people to take up and complete a trade qualification. I'm pleased to say that members of my own family have done so.

The trade support loan provides loans to people completing their apprenticeships. The program aims to support apprentices to meet the everyday costs they encounter while undertaking their training. It currently provides up to $22,890 to an apprentice in loans contingent upon the apprentice's income. Essentially, the amount of the loan is higher in the early years of the apprenticeship and reduces overtime as apprentice wages increase. Once an apprentice completes their apprenticeship, they receive a 20 per cent discount on their loan repayment amount. Loans are repaid through the Australian Taxation Office once an apprentice earns above a minimum repayment threshold, which is $48,361 for the 2022-23 income year. This is the same amount that applies to all study and training loans. To minimise the risk of a person accruing large debts unintentionally, apprentices are required to reapply or opt in every six months to receive a further six instalments of loans.

Last year, more than 50,000 apprentices across a variety of industries received a trade support loan payment. In addition, nearly 17,000 applications were received, and a completion discount was paid to more than 12,000 apprentices. But, currently, only apprentices in trade related apprenticeships are eligible to receive these trade support loans. Therefore, I welcome the change in this bill to expand the Australian apprenticeships priority list to include a wider range of critical non-trade apprentices and trainees in priority occupation areas. These areas include childhood educators, and aged-care and disability workers. As we know, these sectors are experiencing incredibly extreme staff shortfalls nationally. In relation to the early childhood sector, I've been hearing from staff, parents and owners, especially those who are trying to open, and keep open, early learning centres and kindergartens. The calls I'm receiving tell of calls to parents because rooms can't be staffed, while parents are trying to get themselves to work and their older children to school. They tell how the illness of just a few staff can reduce staff ratios to unmanageable and unsafe levels, and how parents are distressed over yet another call to their employer to say that they're unable to come to work because of childcare shortages. So I'm really pleased to see that there is multiparty support for the trade support loans amendments today.

Expanding this program to include traineeships in the care sector is expected to primarily benefit female apprentices and trainees. Given the workforce shortages with which we're all familiar, this is a really welcome development. Australia is experiencing serious skill shortages, and measures must be implemented to support these in-demand occupations, so I suggest that the amendment proposed by the member for Fowler is a very sensible one. The unprecedented high indexation on loans applicable under the Australian apprenticeships priority list almost certainly is a deterrent for disadvantaged individuals pursuing these really high-demand occupations. I reiterate the member for Fowler's call on the government to place a temporary freeze on trade support loan indexation at the 2022 rate of 3.9 per cent to allow Australian apprentices to work full time, pay down their loans and meet their cost-of-living needs.

I commend the bills to the House.

Jenny Ware (Hughes, Liberal Party) Share this | Link to this | Hansard source

I rise to speak in support of the Trade Support Loans Amendment Bill 2023 and the associated legislation, particularly because these bills provide additional financial support and other support to apprentices and trainees.

We are facing a significant skills shortage in our country and in my electorate of Hughes, and any financial or other support that can be provided to encourage people into apprenticeships and traineeships and to retain them must be supported. As I move through my electorate, there is a consistent cry from businesses and employers about jobs and skills shortages, from hairdressers to baristas, chefs, motor mechanics, fitters and turners, early childhood educators and aged-care workers. These bills will assist in addressing these shortages, increase workforce participation, increase productivity in the economy and foster greater diversity within our workforce. For all those reasons, I commend these bills to the House. It is noted that these bills reflect policy changes that were underway when the coalition was in government.

The key point to this legislation, the Trade Support Loans Amendment Bill 2023, is that it amends the Trade Support Loans Act 2014 to facilitate the expansion of the trade support loans program, which is currently available only to apprentices in priority trade occupations. It will be expanded to apprentices and trainees in a broader range of priority occupations, including non-trade occupations such as aged care, disability support and child care. The trade support loans program aims to increase completion rates among Australian apprentices in priority areas by providing financial support to eligible apprentices to assist them with the costs of living and learning while undertaking an apprenticeship. The way that this is stated to be achieved is by offering income-contingent loans up to a maximum of $22,890, which are then paid back when the taxable income of the apprentice or trainee reaches the repayment threshold, which is currently just over $48,000 per year. In this way, the bill will facilitate wider access to loans, which will be renamed Australian apprenticeship support loans.

I just want to take a moment to talk about the state of apprentices and traineeships within Australia. Apprentices face significant barriers to the uptake and completion of an apprenticeship, and this is demonstrated by the long-term decline in the number of commencements and completions by apprentices. In particular, since 2012 and prior to the introduction of the COVID-19 response measures, apprenticeship commencements were declining, dropping 65 per cent from June 2012 to the comparable period in June 2020. This is of concern, and it has now translated, of course, into the significant skills shortage that we have within this country. The annual number of completions of apprenticeships and traineeships also declined, decreasing by about 55 per cent over the period from 2012 to 2020. Again, we are facing difficulties getting students into apprenticeships and then also retaining them and encouraging them to complete those traineeships. Some recent research that's been undertaken said that the movement of young people away from apprenticeships into higher education and other work with higher rates of pay has probably been the leading contributor to a drop in commencements and, significantly, a drop in completions.

There are significant barriers faced by both employers and apprentices at the moment. I'll start by talking about some of the barriers that are faced by employers. Again, these are barriers that we really need to address, and I hear this from employers in my electorate of Hughes. There are several factors that at the moment hinder the hiring of apprentices, including the high upfront costs, the risk of noncompletion, difficulty in recruitment and needing to navigate what has been and still is a fairly complex system. I would call on the government to look at these reasons that have been cited by employers and to look at trying to make it significantly easier for employers, particularly small businesses, to employ apprentices and trainees.

Employers have cited high hiring costs, particularly upfront costs, as a key barrier, and wage costs and other expenses associated with running a business have obviously grown substantially over the past two decades, and particularly over the last 12 months. However, the total standard apprenticeship incentive available to employers has remained unchanged at around $4,000 since 1998, so that is something that I feel that the government does really need to look at.

There's also the time that's required by an employer to supervise and train an apprentice. This could be also seen as a barrier to employers. In the early years of an apprenticeship, supervision costs are high. It's demanding on their time. Often, the time spent supervising, for example, an apprentice or a trainee is time that is then taken away from that particular business. These are some of the barriers that have been cited by employers. It would be good if we could look at improving this situation for employers.

Apprentices also face significant barriers. Low wages and the corresponding concern of not being able to meet the ongoing costs of living are barriers that have been cited by young people and by people that were considering taking up apprenticeships. It's a particular constraint that, for longer term qualifications, it can be for up to four years. Where an apprenticeship may take up to four years, it is considered by many to be a significant barrier, where apprentices are struggling to balance work, study, a social life and other household commitments. That's a significant barrier.

The impact of low wages on apprenticeship commencements and completions is compounded when the market presents higher-paying alternatives. For example, an apprentice mechanic earns a lower wage than a casual hospitality worker or labourer. This is another reason that has been cited as to why many people are not taking up the opportunities of apprenticeships. Financial barriers lower commencement and completion rates by making apprenticeships an unappealing financial decision for many. This may both deter individuals from considering an apprenticeship and lower the completion rates for those who do begin. These financial barriers are strongest in the early years of an apprenticeship, where wages are at their lowest and apprentices can choose better paying alternatives such as retail or hospitality work. In all of those circumstances, this bill, which will provide additional financial support to those undergoing an apprenticeship or a traineeship, is to be commended.

I'll briefly mention women in apprenticeships. The number of women commencing apprenticeships has been steadily increasing over time, which is good news. However, women face a number of barriers to undertaking and successfully completing an apprenticeship, particularly in trade occupations, where there has traditionally been low take-up by women compared to men. Women in non-traditional trades account for only seven per cent of total trade apprenticeships. Women have traditionally gone into hairdressing and the caring industries: child care, disability services and aged care. So we really do need to look at whatever measures can be introduced to assist women into apprenticeships, and particularly into non-trade apprenticeships. The minister's explanatory memorandum on this bill said that it is expected that this legislation will boost support for women's continued participation in the workforce and provide equal support for apprenticeships traditionally undertaken by women in the traditional caring sectors of aged care, disability care and child care. All of those are areas where the country is experiencing significant shortages. That is another reason that I am supporting this legislation.

There are more than 10,000 tradespeople in my electorate of Hughes. These account for about 13 per cent of people employed within my electorate. We currently have 3,356 apprentices and trainees in training, as at the September quarter last year. That's composed of 2,190 in trade occupations and 1,166 engaged in non-trade occupations. I have a TAFE at Loftus, and there are TAFEs at Gymea and Liverpool, which are just outside of my electorate. All three of these serve Hughes's students. In terms of community colleges, we have the St George & Sutherland Community College in Jannali and the Australian Community Education College in Bangor, both of which provide quality education to a broad range of students, making them both skilled and job ready.

To my electorate of Hughes: I recently opened the Hughes Awards, and they include a specific category for the apprentice of the year. Anybody within or without my electorate can nominate somebody who either lives in or works in my electorate. It could be your child, your grandchild, your partner, your friend or your employee. Just go to my website, jenny.ware.com.au, and look for the award nomination form, or you can contact my office. I'm looking forward to reading all of the nominations for apprentice of the year.

To conclude, these bill support apprentices and trainees. They will increase productivity and diversity within the workplace, and for all of those reasons I commend the bills to the House.

Andrew Charlton (Parramatta, Australian Labor Party) Share this | Link to 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.

Zali Steggall (Warringah, Independent) Share this | Link to this | Hansard source

I rise today to address this House on a deceptively simple yet incredibly important bill, the Trade Support Loans Amendment Bill 2023. It's accompanied by the Student Loans (Overseas Debtors Repayment Levy) Amendment Bill 2023. So what are the trade support loans bills? Trade support loans are interest-free income based government loans that act as an incentive for people to complete their training in priority trade occupations. The loans are interest free while you are studying but then are indexed by CPI. Provided studies are successfully completed, the amount to be repaid is discounted by 20 per cent. I will return to the question of the CPI indexing later in my speech, as we know that is problematic across a number of areas.

What trades are supported in this proposal? Currently, the occupations included are limited to the traditional trades. This limitation does not serve the new economy, I would say, and does not achieve equity and certainty, and certainly does not benefit a whole range of occupations where Australia has a desperate and current identified need. So to remove current limitations, the Trade Support Loans Amendment Bill allows the minister, by legislative instrument, to extend the types of occupations that will be covered and that will enable trainees to qualify for this type of discounted loan whilst completing their training and studies.

What are the changes being made by this legislation? This expanded list of occupations, to be called the Australian Apprenticeships Priority List, has the potential to dramatically expand eligibility for loans to apprentices and trainees working in a very broad range of occupations that we know are subject to skills shortages. Australia's skills shortage is the second highest in OECD countries. We have been advised that the list will include occupations such as early childhood education, aged care and disability care but also will include occupations such as enrolled nursing, personal care assistants, therapists, dental technicians and many more.

The inclusion of these occupations where current shortages exist is to be applauded. We have to recognise that, traditionally, apprenticeships and traineeships have been overwhelmingly in male dominated occupations. Only a very small number have been available in occupations that are more female focused. So expanding this list to create some gender equity for young people in accessing the scheme is incredibly important.

Do the changes proposed in this bill match the need? The Australian Apprenticeships Priority List is a real crux of the change in this legislation. Getting this list right places a substantial and ongoing responsibility on the minister to ensure that the list is sufficiently expensive and reflective of current needs as well as anticipating future needs, and, realistically, it needs to remain dynamic to enable us to meet future challenges.

What can we do to ensure the list becomes anticipatory rather than purely reactive? Getting it right requires understanding of and responding to the breadth of current needs and opportunities. Getting it right also requires anticipating what the new economy needs are going to be now and well into the future. The February 2023 Labour market update lists the top 20 occupations in high demand nationally. These include a range of ICT disciplines from chefs to construction managers, retail managers, advertising and marketing professionals, physiotherapists and gardeners, so the needs are very broad.

The Labour market update also noted that it's important to recognise that there are many more occupations of key significance to the economy and the wellbeing of Australians. The need for additional workers in the new economy will include, for example, electricians with specialties such as heating, ventilation and air-conditioning, and, depending on what the government wants to do with our metals processing sector, metallurgists and other trades involved in the processing of critical minerals. The need for STEM qualifications tops every list.

What are the benefits? The people and businesses in Warringah, for example, have been crying out for such changes. Many of my Warringah constituents have raised the challenges faced in employment, and in operating and building businesses because of skills shortages and the difficulty in accessing talent and workforce. This bill will benefit many businesses around Australia, and also in Warringah—as well as Warringah residents and all Australians. There will be an increased number of Australians who will be able to afford occupational training. Those already in training and facing hardship will be able to get discounted loans to ease that hardship. Those in training are more likely to complete their training because of the 20 per cent deduction for completing their apprenticeship or traineeship. That is the incentive—the carrot to get through. Currently, the statistics for completion are simply not good enough, and we are wasting resources in training up but not getting that completion factor.

There will be increased choice in careers due to the broadening of occupations supported and by increasing the accessibility to those occupations. And there will be increased availability of trainees and qualified people for business and industry to employ. The bill will support the new economy by encouraging sustainable and inclusive economic growth; by contributing to the reduction of inequities, in particular gender inequity; and by boosting workforce participation by addressing the barriers for women, people with disabilities and low-income earners. It will reduce significant disadvantage by abolishing the current emphasis on favoured male-dominated industries; by pursuing broad based economic growth and job creation; and by embedding positive government interventions to support inclusion and sustainable growth.

But the opportunity for more is there, so what else should the government be addressing? This bill is a critical step, and I encourage the government to expand and extend its support to the new economy by providing benefits that are far-reaching and which will enable Australians to prosper into the future. We should aim to address our fall to 25th in the Global Innovation Index—in 2018 we were at 17th and we're now at 25th—through an expanded emphasis on skilling the broadest range possible. Innovation will play a huge role in the future of the Australian economy. Equipping and upskilling new and existing workers for future jobs with STEM skills will be a key enabler for Australia to embrace new economy opportunities. And important contributions to the workplace and the economy flow from those who are re-entering the workforce after an extended absence, but it's easy for them to be overlooked. They'll need not only the financial support possible under this trade support loans bill but they're also crying out for a simplified training pathway to facilitate their return to work. That includes more tailored training offerings which more accurately take into account their earlier training and their incredible wealth of on-the-job experience. This is where gender equity plays a huge role, as we know that there's a huge number of women who, through caring responsibilities, have left the workforce and who want to return to the workforce and paid employment, but who are limited by that access to retraining and the difficulty of those training pathways.

And we have to talk about indexation; it's a really critical issue. CPI is applied to all student loans, including loans under this Trade Support Loans Amendment Bill. There has been a concerning increase in student debt over the past two years because of above-target inflation and, hence, above-average indexation. We've gone from 3.9 per cent last year to 7.1 per cent this year. The rise is creating great consternation among the younger generations, who are facing higher costs of study and higher levels of debt, and now the debt is growing at rates faster than they can possibly pay down. This year the increase will rise faster than the average home loan, and nearly double the rate of wages growth. While I hope that this year is an anomaly, I think it has shown that the system is actually not quite right and that it's time for the government to look at that. We can't afford to put additional burdens on younger generations who are already struggling with the cost of living and the housing crisis. Graduates in the 20 to 29 age group will take the brunt of this CPI increase, with their increase rising by an average of some $2,069 on the median debt of a bit over $29,000 from study. With an increasing number of jobs requiring further education and training into the future, we must seek ways to reduce the fear of a debt burden on our younger generations and on older Australians seeking to retrain and re-enter the workforce.

Alternative solutions need to be considered to relieve this burden. One potential mitigation would be to consider changing the indexation rate to be the lower rate of either the consumer price index or the Reserve Bank of Australia's official cash rate over the course of the year. To give the House an example of what that would do this year: it would mean indexation would be approximately 2.66 per cent rather than the planned 7.1 per cent. Alternatively, the government could also consider linking the wage price index—indexation would be linked to the wage price index—which is as it's done in the UK, for example. That would create a link between ability to repay and increase of debt.

As the government considers further incentives around education, it must consider the disincentives to study that exist in the system and address the fear of the debt burden incurred by those training, whether it be through tertiary education or apprenticeships and traineeships. Fear of that debt burden is real. It is a very prominent part of decision-making and we must, in this place—and I urge the government to—do more to address that fear and concern, and deal with the debts incurred and how they will exacerbate future cost-of-living pressures for young Australians. I believe the current statistics are that we have about four people working in Australia, in the system, for every one person that doesn't work. In 20 years I believe it's anticipated that we will change that ratio to about two people working for every one person working. That says our system needs to adapt and change, and that we must incentivise training and participation in the workforce.

I commend the government on the Trade Support Loans Amendment Bill 2023. I will support this legislation, but I encourage the government to be dogged in pursuing innovation and innovative solutions to address training and workforce issues, as I have highlighted, and to maximise workforce potential and contribution in our emerging new economy. Do not just look to immigration as a way of solving jobs and skills shortages, because that creates a whole range of other problems when it comes to infrastructure, housing and other access. We should first make sure we are maximising utilisation and participation of Australians here now. That means addressing gender inequity issues and opportunities for training and access to paid employment. I urge the government to consider further action in this fight. Thank you.

Mr Tony Burke (Watson, Australian Labor Party, Minister for Employment and Workplace Relations) Share this | Link to 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.

Steve Georganas (Adelaide, Australian Labor Party) Share this | Link to this | Hansard source

The original question was that this bill be now read a second time. To this, the honourable member for Fowler has moved as an amendment that:

All words after 'that' be omitted with a view to substituting other words.

The immediate question is that the amendment be disagreed to.

Question agreed to.

Original question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.