Australian Government, 2010‑11 Budget
Budget

Part 1: Expense Measures (Continued)

Education, Employment and Workplace Relations

Additional Remoteness Loading for Remote Indigenous Students Attending Non-Government Boarding Schools

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - - - - -

The Government will provide $22.4 million over four years to establish a higher per capita rate of Indigenous Supplementary Assistance to non-government boarding schools with more than 50 Indigenous students from remote Indigenous communities. This will deliver additional support for Indigenous students from remote communities attending non-remote boarding schools.

Indigenous Supplementary Assistance supports schools to deliver high quality education outcomes for Indigenous children.

The cost of this measure will be met by redirecting funds from the Indigenous Education Targeted Assistance Program to provide more targeted support for students from remote Indigenous communities to be able to access non-remote schools.

This measure delivers on the Government's election commitment.

Centre for International Finance and Regulation — redirection of funds

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - -2.6 -4.5 -4.0 -1.0

The Government will redirect funding of $12.1 million from the establishment of the Centre for International Finance and Regulation.

The Government will continue to provide $12.1 million in funding, over four years, towards the cost of establishing the Centre, with any additional costs to be met by the host or consortium of Universities which will be selected to establish the Centre.

Connecting People with Jobs (Job Seeker Relocation Assistance Package)

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - - - - -

The Government will provide $14.6 million over three years from 2010‑11 to fund a two year pilot program providing assistance for up to 2,000 eligible long-term unemployed Australians who relocate to take a job. From 1 January 2011:

  • up to $3,000 will be provided to single participants and up to $6,000 to families relocating to metropolitan areas; and
  • up to $6,000 will be provided to single participants and up to $9,000 to families relocating to regional areas.

In addition, up to 2,000 employers will be eligible for a $2,500 financial incentive to be paid in the early stages of the participant's employment.

The costs of this measure will be met from quarantined funding under the Employment Pathways Fund that is already included in the forward estimates.

This measure delivers on the Government's election commitment.

Critical Skills Investment Fund — Regional Funding

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - - - - -

The Government will ensure that approximately one-third ($66 million) of the Critical Skills Investment Fund will be directed to deliver training places in regional areas and help address skill shortages. This will be funded from within the existing $200.2 million allocation for this program.

See also the 2010‑11 Budget Measure Skills for Sustainable Growth — Skills for Recovery — Critical Skills Investment Fund.

This measure delivers on the Government's agreement with the Members for Lyne, Rob Oakeshott MP, and New England, Tony Windsor MP.

Early Termination of 'Early Access to Employment Services for Redundant Workers'

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - -9.9 -16.8 -1.8 -0.4

The Government will, from 1 January 2011, cease funding the Jobs and Training Compact — early access to employment services for redundant workers measure, announced in the 2009‑10 Budget.

This measure was introduced as part of the Government's response to the global financial crisis to assist redundant workers find employment or an appropriate education or training course as quickly as possible. The measure was originally scheduled to end on 31 March 2011, however, since it was introduced, economic circumstances have improved and the unemployment rate has declined.

Redundant workers who qualify for assistance under the program up to 31 December 2010 will continue to receive intensive employment services, and all individuals who are unemployed will continue to have access to employment services.

The measure will provide savings of $29.0 million over five years from 2010‑11 (including $0.1 million in 2014-15).

Education Services for Overseas Students

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - 14.3 10.7 - -

The Government will provide up to $25.0 million over two years to support the operation of the Education Services for Overseas Students Assurance Fund.

Established under the Education Services for Overseas Students Assurance Act 2000, the Fund provides compensation to international students in the event of an education provider closure by giving students a refund of any course fees that cannot be recovered from providers where students are unable to be placed in a suitable alternative course. The funding will supplement provider contributions to the Fund, and will only be drawn down if required.

This assistance will help ensure the Fund is able to meet its obligations until 1 January 2012, by which time the Government expects to have developed its response to the major recommendations of the Baird Review.

Online Diagnostic Tools for Parents and Teachers

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - 3.3 15.7 10.7 10.2

The Government will provide $39.9 million over four years to develop assessment and learning tools for students, parents and teachers. The Australian Curriculum Assessment and Reporting Authority (ACARA) will develop a new website which will provide online testing tools for teachers and parents, as well as sample assessments for the National Assessment Program to trial online testing. This new website will help both parents and teachers evaluate the strengths and learning needs of students. The tools will be provided nationally through an online diagnostic website which will assist with the evaluation of the strengths and learning needs of students.

This measure delivers on the Government's election commitment.

Productivity Places Program — redirection

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - -38.0 -17.0 - -

The Government will redirect uncommitted funding from the Commonwealth element of the Productivity Places Program. This will provide savings of $55.0 million over two years which will be redirected to support other Government priorities.

The Productivity Places Program will continue to support training in priority areas across the Australian economy including skill shortage occupations, and job seekers will maintain access to other forms of assistance.

Protecting Worker's Entitlements Package — The Fair Entitlements Guarantee

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - 10.1 15.1 16.9 17.2

The Government will provide $59.3 million over four years to introduce the Fair Entitlements Guarantee, which will protect employee entitlements if the employer they work for enters liquidation and cannot pay their employees the entitlements they are owed.

The Fair Entitlements Guarantee will replace the General Employee Entitlements and Redundancy Scheme (GEERS). The new Guarantee will extend current entitlements provided under GEERS to include redundancy pay, up to a maximum of four weeks for each year of service. The increased protection for redundancy entitlements will be embedded in legislation. However, prior to the introduction of the Fair Entitlements Guarantee legislation, the increased protection will commence on 1 January 2011 through changes to the GEERS operational arrangements. The new Guarantee will apply to all Australian workers other than company directors and their close associates.

The funding for increased entitlements is in addition to the $458.6 million over four years currently available for the GEERS.

This measure delivers on the Government's election commitment.

Removal of Job Capacity Account Funding

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - -12.5 -17.4 -25.0 -25.0

The Government will cease funding for the Job Capacity Account from 1 January 2011 to remove overlap and duplication in funding for services already available through the Employment Pathways Fund.

The Employment Pathways Fund is currently accessed by Job Services Australia providers to fund services and assistance that best meets the needs of job seekers in overcoming barriers to employment. The Employment Pathways Fund, under the Job Services Australia program, will be available to continue to purchase services such as counselling and rehabilitation.

This measure will provide savings of $79.9 million over four years and delivers on the Government's election commitment.

Schools — Empowering Local Schools

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - 1.6 65.3 1.1 1.1

The Government will provide $69.1 million over four years to help improve student performance and outcomes by providing principals, parents and school communities greater input into the management of their local school, including school budgets, the mix of staff and setting local priorities. Initially up to 1,000 government, Catholic and Independent schools are expected to participate in the program in the 2012 and 2013 school years, with funding allocated proportionally to schools across all States and Territories. A third of these schools will be located in regional areas. The balance of schools are expected to transition between 2015-16 and 2018-19.

Participating schools will be eligible for a funding grant of $40,000 for a small school or $50,000 for larger schools to assist them in their transition to more autonomous operations, with recurrent funding costs to be met by school education systems.

The proposal also includes funding of $1.3 million for the Australian Institute for Teaching and School Leadership to develop school governance models and training courses for principals on leading and managing more autonomous schools.

This measure delivers on the Government's election commitment and the agreement with the Members for Lyne, Rob Oakeshott MP, and New England, Tony Windsor MP.

Schools — Review of Funding for Schooling

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - - - - -

The Government will provide $4.8 million to support the activities of the Review of Funding for Schooling.

The cost of this measure will be met from within the existing resourcing of the Department of Education, Employment and Workplace Relations.

Further information on the Review of Funding for Schooling can be found in the press release of 9 July 2010 issued by the then Minister for Education.

Schools — Reward Payments for School Improvement

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - 5.1 16.9 49.7 93.0

The Government will provide $164.8 million over four years to provide reward grants to government and non‑government schools that have shown the most improved performance over twelve months.

In 2012‑13, 275 primary schools will receive a payment of up to $75,000 each and 225 secondary schools will receive a payment of up to $100,000 each. This will rise to 550 primary schools and 450 secondary schools by 2013‑14.

A new Office of National School Evaluation will be established within the Australian Curriculum Assessment and Reporting Authority to develop a National School Improvement Framework to serve as the basis for assessing the recipients of the grants.

In total, $388 million will be provided over five years from 2012‑13, with a minimum of $125 million in reward payments over five years from 2012‑13 to be made to regional schools.

This measure delivers on the Government's election commitment and the agreement with the Members for Lyne, Rob Oakeshott MP and New England, Tony Windsor MP.

Trade Apprentice Income Bonus

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - 29.0 57.4 89.8 104.8

The Government will provide $281.0 million over four years to increase the bonuses available to apprentices under the Tools for Your Trade Program by a total of $1,700. Under the changes:

  • the 12 month payment will increase by $200 to $1,000;
  • the 24 month payment will increase by $200 to $1,000;
  • the 36 month payment will increase by $500 to $1,200; and
  • the completion payment will increase by $800 to $1,500.

The Tools for Your Trade payment is available to apprentices undertaking Certificate III or IV level qualifications in a trade occupation listed on the National Skills Needs List and apprentices undertaking Certificate II, III or IV level qualification in Agriculture or Horticulture related occupations. The payment provides financial support for the costs incurred by apprentices while undertaking their training and is expected to lead to an increase in commencements and completions. The increased bonuses will be available to apprentices commencing and recommencing an apprenticeship from 2009 onwards.

This measure delivers on the Government's election commitment.

Trade Training Centres in Schools — National Trade Cadetships — establishment and work experience

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - 2.5 0.6 12.5 12.5

The Government will provide $28.1 million over four years to improve pathways into vocational education for students in years 9 to 12. This will involve the Australian Curriculum Assessment and Reporting Authority developing a new National Trade Cadetship in partnership with Industry Skills Councils and States and Territories. From 2012, students from years 9 to 12 will be offered a new National Trade Cadetship as an option under the National Curriculum, which will be delivered through existing Trade Training Centres in schools or other eligible venues.

As part of the $28.1 million, the Government will provide $12.5 million per annum from 2012‑13 to support structured work experience places for National Trade Cadets. Group Training Organisations will be funded to facilitate the establishment of up to 50,000 work experience placements per annum for students undertaking a National Trade Cadetship from 1 January 2012.

This measure delivers on the Government's election commitment.

Victorian College of Arts and Music — Additional Funding

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - 2.0 2.5 5.2 5.4

The Government will provide $15.1 million over four years to the Victorian College of Arts and Music as part of its proposed recognition as a 'National Institute' under the Higher Education Support Act 2003. The funding is in addition to Commonwealth Grants Scheme funding provided to the Victorian College of Arts and Music through the University of Melbourne.

The measure will restore the Victorian College of Arts and Music funding to the level it received prior to becoming part of the University of Melbourne in 2005 and aligns with the Government's commitment to support endeavours that encourage excellence in artistic effort.

The Government will also provide $2.0 million in 2010‑11 to match the Victorian Government's payment of $2.0 million to be used as seed funding for the establishment of a foundation trust to support the future activities of the College.

This measure delivers on the Government's election commitment.

Vocational Education and Training National Support — reduction in funding

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - -6.3 -6.3 -6.3 -6.3

The Government will reduce funding for the Vocational Education and Training National Support program. This will provide savings of $25.0 million over four years to offset the cost of providing support to the Education Services for Overseas Students Assurance Fund.

The Vocational Education and Training National Support program will continue to provide $1.8 to $1.9 billion in annual funding for skills development.

See also the related expense measure titled Education Services for Overseas Students Assurance Fund in the Education, Employment and Workplace Relations portfolio.

Welfare Reform — Tougher Rules for Job Seekers

Expense ($m)
2009‑10 2010‑11 2011‑12 2012‑13 2013‑14
Department of Education, Employment and Workplace Relations - - - - -
Centrelink - - - - -
Total - - - - -

The Government will strengthen the compliance framework for job seekers receiving income support who fail to attend appointments with their employment service provider or their required activity such as training.

The failure of a job seeker to attend a provider appointment or an activity will result in the suspension of income support payments until they attend a rescheduled appointment or resume their activity. The job seeker's income support will then be reinstated and paid back in full.

Where the job seeker fails to attend a rescheduled appointment or activity, their payment will be cancelled until they attend. While suspended payments will be back paid, cancelled payments will not.

The cost of this measure will be met from within the existing resourcing of the Department of Education, Employment and Workplace Relations and Centrelink.

This measure delivers on the Government's election commitment.

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