May 2017 Federal Budget Update

  • Investment in the education and child care sector will increase to $42.6 billion
  • 1.5 billion Skilling Australians Fund (SAF) to replace the National Partnership Agreement, which currently funds both WorkReady in SA and Tafe.
  • SAF will be used to create an extra 300,000 apprentices over the next 4 years (although federal support for JGTP was withdrawn last year). Is this robbing Peter to pay Paul? This measure is designed to give Australians the best opportunity to fill Australian jobs, rather than relying on overseas qualified workers and 457 VISAS.
    • Statistics indicate apprentice numbers have fallen 46% over the last 4 years.
    • SAF will be targeted towards skilling Australians in those occupations in high demand; tourism, hospitality, health and ageing, engineering, manufacturing, building and construction, agriculture & digital technology
  • A new $60 million Industry Specialist Mentoring program, to provide extra support for approximately 47,000 apprentices, with a focus on apprentices working in industries undergoing structural change (i.e. automotive sector). This is likely to be picked up by the Australian Apprenticeship Employment Network AAEN providers
  • Parents Next national expansion, ramping up support from 13,000 – 68,000 young parents
  • Legislation to increase the Medicare Levy by 0.5% to 2.5% from 1 July 2019 to fund the NDIS
  • Extra $18.6 billion in school funding over the next decade under the Gonski needs based model
  • University students will face a 7.5% tuition fee hike, higher repayments on government provided loans, and will begin paying back loans at a lower salary threshold of $42,000