Key Investments in Employment and Workplace Relations- FEDERAL BUDGET 2024/2025

Key Investments in Employment and Workplace Relations- FEDERAL BUDGET 2024/2025

In the latest Federal Budget, the Australian government has unveiled a series of strategic investments and reforms within the Employment and Workplace Relations portfolio, aimed at bolstering the country’s workforce and enhancing workplace conditions.

Australian Apprenticeships Incentive System – Further Support

The government is committing $265.1 million over four years from 2024-25 to increase support for apprentices, trainees, and their employers in priority occupations. This move includes raising Phase Two Incentive System payments for apprentices in priority occupations from $3,000 to $5,000 and enhancing hiring incentives for employers from $4,000 to $5,000 for 12 months starting from 1 July 2024. This adjustment is part of an ongoing Strategic Review of the Australian Apprenticeships Incentive System.

Employment and Workplace Relations – Reprioritisation

To achieve savings of $65.5 million over five years from 2023-24, the government will cease several programs, including the Harvest Trail Services and Harvest Trail Information Service from 30 June 2024, and the International Skills Training Courses program from 1 April 2024. Savings will also come from reducing grants and redirecting funds from specific initiatives, such as the Prohibition on the Use of Engineered Stone communications strategy.

Employment Services Reform

A total of $13.2 million over five years from 2023-24 will be invested to improve the employment services system. Key initiatives include:

• $68.6 million to enhance the Digital Services Contact Centre for Workforce Australia Online.
• $32.1 million for the Real Jobs, Real Wages pilot to support wages for those at risk of long-term unemployment.
• $21.9 million for paid employment placements through social enterprise and employer partnerships.
• $13.0 million to strengthen the complaints mechanism for Workforce Australia clients.
• $10.9 million for IT system improvements in Workforce Australia.
• $6.4 million to ensure better application of mutual obligation rules for income support recipients.

These reforms align with the government’s Employment White Paper principles and will be partially funded through reprioritising existing Employment Services program funds.

Further Support for the Vocational Education and Training System

The government will invest $26.1 million over four years from 2024-25 to strengthen the Vocational Education and Training (VET) system. This includes:

• $10.6 million for implementing a reporting solution for the Australian Skills Guarantee.
• $9.5 million for Jobs and Skills Australia to continue advising on the labour market and training needs.
• $6.1 million for the National Careers Institute to support access to targeted careers information.
• $2.9 million for continued implementation of the National Skills Agreement.

A business case will also be developed for a modern ICT solution for Trades Recognition Australia to expedite the availability of skilled workers.

Promoting TAFE and VET Pathways

To boost demand for Vocational Education and Training, the government will provide $4.4 million in 2024-25 for strategic communications to promote VET pathways and Fee-Free TAFE courses, especially in areas with high skill needs.

Workplace Relations

The government is dedicating $111.8 million over four years from 2024-25 to advance its workplace relations agenda. This includes:

• $60.0 million to increase the Productivity, Education and Training Fund.
• $27.5 million to enable the Office of the Fair Work Ombudsman to target non-compliance among large corporate employers.
• $20.5 million to support small business employers in complying with recent workplace law changes.
• $2.0 million for the Victorian Government to progress a national labour hire regulation model.
• $1.5 million to establish a Family and Injured Workers Advisory Committee.
• $1.5 million to expand the review of the Safety, Rehabilitation and Compensation Act 1988.

Additionally, the Fair Entitlements Guarantee Recovery Program will be recalibrated to pursue unpaid superannuation entitlements, with expected increases in tax receipts and payments to superannuation funds over the next four years.

These comprehensive measures underscore the government’s commitment to enhancing workforce capabilities, ensuring fair workplace practices, and supporting Australia’s economic growth and development.

Read here for more updates on the 2024-25 Budget!

Source

Budget 2024-25/ Budget Paper No. 2/ Page No. 90-96

May 16, 2024