Perin Davey (NSW, National Party, Shadow Minister for Water) Share this | Hansard source

The Liberals and Nationals will not supporting these amendments. The coalition supports the bills and the expansion of trade support loans to the new Australian Apprenticeship Support Loans scheme as outlined in the bills. The intention of these bills—to expand access to cost-of-living supports to Australians as they undertake training and to help them complete their courses—is admirable, but we recognise that this support must be targeted and temporary. We believe that, once workers are in a position to start paying back their loans, they should do so. We cannot support the abolition of indexation on these loans, because that provides a perverse incentive for people not to repay them as quickly and efficiently as possible. Australians receive this support because, as a community, we have made the choice to help support the aspirations of those looking to take on a new skill. This is not a cost-free exercise, and policies that provide support must be sustainable.

I also note that the quantum of the loans under this scheme will be much, much lower than that experienced by many university students. It is not adequate to draw a direct link to the HELP system. Further, given record low unemployment and the high demand for skilled workers, graduates who qualify for these loans will overwhelmingly find employment rapidly, and only once they've got the employment will they be required to pay the loans back. We're very comfortable with the existing settings in this bill, and we don't believe that the new approach to delaying the repayment of these supports, as suggested by the Greens, is appropriate. We know that support provided by the Australian Apprenticeship Support Loans will make a difference to the lives of students, but, equally, we know that once they have a skill they'll be on the right path to great job opportunities and a prosperous future. We support the existing settings in the bills and do not support these amendments.