These initiatives will support employers to take on and retain Australian Apprentices by providing valuable employment and training opportunities for those Australians looking to gain skills or retrain. They will also ensure that Australia’s skills base is protected and maintained. It is important to maintain the flow of fully qualified tradespeople to support economic growth as the economy emerges from the downturn as it is anticipated that the demand for skills will strongly rebound.

The Budget announcement provides a $3.8 billion investment in Australian Apprenticeships (apprenticeships and traineeships) over four years. This is in addition to providing $155 million for the Securing Australian Apprentices measures and $20 million for the Skills for Sustainability Incentive for Australian Apprentices.

The new Budget announcements streamline existing initiatives to eligible Australian Apprentices and employers and aim to address the low take-up rates along with simplifying the administrative processes associated with the management of some of these initiatives.

The main Budget announcements, commencing on 1 January 2010 include:
» Broadening eligibility for the $4,000 incentive payments to the employers of all Australian Apprentices who are studying up to Diploma and Advanced Diploma level qualifications.

» The extension of the Support for Mid-Career Apprentice payment from those aged 30 and over to those aged 25 and over. The new payment will be called ‘Support for Adult Apprentices’.

» The enhancement of the ‘Tools For Your Trade’ voucher initiative to the new ‘Tools For Your Trade’ payment initiative for Australian Apprentices. This combines and extends three existing separate support initiatives (the Tools For Your Trade voucher, Apprenticeship Wage Top-Up and Commonwealth Trade Learning Scholarship) into the one new ‘Tools For Your Trade’ payment under the Australian Apprenticeships Incentive Program. The new ‘Tools For Your Trade’ payment will be available to Australian Apprentices in selected trade occupations, agricultural occupations, and if in rural and regional Australia, horticulture occupations. The new payment comprises five tax exempt cash payments totalling $3,800 paid over the life of the Australian Apprenticeship. Payments of $800 will be paid at the three, 12 and 24 month points and $700 at the 36 month point and on completion.

As a result of the enhancement of the new ‘Tools For Your Trade’ payment, commencing on 1 January 2010 the Apprenticeship Wage Top-Up and Commonwealth Trade Learning Scholarship initiatives will cease for new commencements as of 31 December 2009.

The Tools For Your Trade voucher initiative will cease on 12 May 2009. New commencements on or after 13 May 2009, may be eligible for the new ‘Tools For Your Trade’ payment initiative. Payments will commence in January 2010.

Australian Apprentices commencing on or prior to 12 May 2009 will still be eligible for the Tools For Your Trade voucher initiative.

Other announcements are:
The Apprenticeship Training (Fee) Vouchers (ATV) program will cease for new commencements from 1 July 2009. This program has been superseded by the Productivity Places Program which has 85,000 places specifically identified for Australian Apprentices. Australian Apprentices commencing on or prior to 30 June 2009 will still be eligible for assistance under this Program.

In order for Australian Apprentices or their employers to be considered for assistance under the ATV Program before its cessation, all course fees must be paid by 30 September 2009 and the correctly completed claim form with evidence of course fee payments attached must be received by DEEWR no later than 5pm on 30 October 2009.