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Policy initiatives > Budget highlights > Commonwealth 2022-23
The 2022-23 October budget was released by the Albanese Labor Government on 25 October 2022, the second budget for the financial year, following the federal election held in May 2022. Budget highlights relating to skills and training are provided below. Direct links to relevant budget papers are provided for quick and easy access.
The 2022-23 October budget estimates the annual administered expenses for the AAIP, which closed to new applications on 30 June 2022, will be more than $2.43 billion in 2022-23, but decline to around $106 million by 2025-26. The annual administered expenses for the AAIS, which commenced on 1 July 2022, are estimated at $146.718 for 2022-23, with a further $2.17 billion across the forward estimates (Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 40).
The Government will undertake the initial design and implementation of the Australian Skills Guarantee, in consultation with stakeholders, to ensure that one in ten workers on a major Commonwealth funded project is an apprentice, trainee or a paid cadet, with sub-targets for women. The cost of this measure will be met from within the existing resourcing of the Department of Employment and Workplace Relations, and delivers on the Government's election commitment as published in the Plan for a Better Future (p. 10) (Budget paper no. 2: Budget measures, p. 98).
$95.6 million is allocated over nine years ($9.2 million in 2022-23) to support 10 000 people to complete a New Energy Apprenticeship. Eligible apprentices will be able to claim a New Energy Apprentice Support Payment of up to $10 000 over the duration of the apprenticeship, comprising $2000 on commencement, $2000 per year for up to three years, and $2000 on completion. Additional in-training support places will be made available for all New Energy Apprentices, with extra support for targeted groups including First Nations peoples, mature age apprentices, regional and remote Australians, and people from culturally and linguistically diverse backgrounds. This measure complements existing investment to support women in trades, and delivers on the Government's election commitment as published in the Plan for a Better Future (p. 11) (Budget paper no. 2: Budget measures, p. 101).
$9.6 million is provided over five years from 2022-23 to support Australia's workforce to transition to a clean energy economy, which includes the funding to support a new mentoring program to help train and support new energy apprentices. This measure delivers on the Government's election commitment as published in the Plan for a Better Future (p. 11) (Budget paper no. 2: Budget measures, p. 101).
Under the 'Outcomes of the Jobs and Skills Summit' budget measure, $11.5 million is allocated over four years from 2022-23 to the Australian Public Service Commission to establish an APS Digital Traineeship Program to support early to mid-career transitions into digital roles. Priority groups such as First Nations people will be supported to undertake a certificate IV qualification in digital or technology related fields (Budget paper no. 1: Budget strategy and outlook, p. 13; Budget paper no. 2: Budget measures, p. 82; Fact sheet: Skills and training, p. 4).
A Digital and Tech Skills Compact, implemented in partnership with businesses, unions and training providers, will deliver digital apprenticeships to support entry level tech workers to earn while they learn. The Compact will include equity targets for groups traditionally underrepresented in digital and tech fields (Budget paper no. 1: Budget strategy and outlook, p. 13; Fact sheet: Skills and training, p. 4).
This budget measure includes $54.3 million over five years from 2022-23 to deliver up to 500 First Nations certificate III and IV traineeships in Aboriginal and Torres Strait Islander Primary Health Care (Budget paper no. 2: Budget measures, p. 140).
Under the 'Responsible Investment to Grow Our Regions' budget measure (Budget paper no. 2: Budget measures, p. 164), $22.6 million has been allocated over four years for around 29 000 additional In-Training Support places for apprentices in regional and remote areas. In-Training Support services are based on assessment of individual need and may include pastoral care, mentoring, counselling, career guidance, industry mentoring, conflict resolution and referral to other specialist services (Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 17).
As a result of its Spending Audit, the Government will improve the quality of spending by redirecting funding from under-performing programs. This totals $115.3 million over four years from 2022-23 in relation to employment, skills and training. Savings include:
The Government will also not proceed with a six-month extension of a trial of career advice access for digital job seekers from 1 July 2022 to 31 December 2022, as it overlaps with other career advice services. This funding will offset the measure 'Jobs and Skills Australia - establishment', the Government's election commitments and other Government priorities (Budget paper no. 2: Budget measures, p. 99).
$4.7 million over two years from 2022-23 has been provided for the Treasury to deliver the Jobs and Skills Summit in September 2022 and to develop the Employment White Paper in 2023 (Budget paper no. 2: Budget measures, p. 83).
$29.6 million over four years was allocated in the 2020-21 budget (p. 80) to support the ongoing role of the National Careers Institute to simplify and strengthen career information, promote vocational education and training (VET) pathways, and enhance partnerships between industry, employers, schools and tertiary providers. $13.803 million is allocated to the initiative in 2022-23, and $1.136 million for 2023-24 (Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 41).
This budget measure includes $90 million over five years from 2022-23 to employ and upskill up to 1000 Landcare Rangers to deliver on ground actions to protect and restore Australia's environment and heritage and help address labour and skill shortages in the environment sector, and to fund the Landcare Facilitator to coordinate community Landcare activities and improve knowledge sharing (Budget paper no. 2: Budget measures, p. 68).
The Government will achieve savings of $50 million over four years from 2022-23 by ceasing work experience and internships programs under Workforce Australia. Savings include:
The savings from this measure will be redirected to fund other Government election policy priorities. This measure includes the Government's election commitment as published in the Government's Plan for a Better Future (p. 11) (Budget paper no. 2: Budget measures, p. 102).
The Government will provide $9.4 million over three years from 2022-23 to establish a trial of a New Jobs Program. The trial will create up to 200 job opportunities in remote and very remote locations with thin labour markets. Jobs under the trial will pay real wages and provide proper conditions. The Government will also consult with key stakeholders and communities around the design for the new program. The cost of this measure will be partially met from within the existing resourcing of the Department of Employment and Workplace Relations and the National Indigenous Australians Agency. This measure will redirect partial funding from the 2022-23 March budget measure (p. 164) titled 'Remote Engagement Program' and savings identified as part of the Spending Audit (Budget paper no. 2: Budget measures, p. 173).
This budget measure includes the provision of $34.8 million over four years from 2022-23 to onboard and maintain the Skills for Education and Employment (SEE), the Self Employment Assistance, and the Harvest Trail Services programs on to the Workforce Australia Digital Platform to support the delivery of integrated employment services (Budget paper no. 2: Budget measures, p. 105).
The SEE program provides training to help eligible job seekers build their reading, writing, maths and basic computer skills. SEE caters to various groups including Aboriginal and Torres Strait Islanders, youth, people with disabilities, mature aged people, and job seekers from culturally and linguistically diverse backgrounds in metropolitan, regional, and remote areas. The 2022-23 October budget estimates the annual administered expenses for SEE will be $125.418 million in 2022-23 (Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 40).
$204.8 million is provided over five years from 2022-23 to support industry training, research, and development to improve innovation and encourage sustainable and productive growth for Australia's timber production. The funding includes $10 million over four years from 2022-23 to support the delivery of qualifications, competencies, and credentials to meet the training and accreditation needs of forestry and wood products industries (Budget paper no. 2: Budget measures, p. 43).
The 2021-22 'Stronger Support for Skills Reform' budget measure (p. 93) includes $149.2 million over four years from 2021-22 to establish up to 15 industry owned Industry Clusters (formerly known as Skills Enterprises) to deliver improved skills and workforce outcomes through collaboration with industry and to ensure that the VET system is responsive to industry and employer skills needs. The estimated annual administered expenses for Industry Clusters are $74.127 million for 2022-23, with a further $327.781 million allocated over the forward estimates. The Skills Organisation Pilots and the Australian Industry and Skills Committee will receive $9.839 million and $787 000 respectively in 2022-23, with no further funding allocated across the forward estimates (Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 41).
$12.9 million is allocated over three years ($4.1 million in 2022-23) to establish Jobs and Skills Australia to provide national leadership and advice on Australia's labour market, and skills and training needs. Jobs and Skills Australia will provide data analytic capability and will work in partnership with state and territory governments, industry, employers, unions, and training providers. This measure delivers on the Government's election commitment as published in the Plan for a Better Future (p. 15) (Budget paper no. 2: Budget measures, p. 100).
The National Skills Commission's (NSC) funding will be transitioned to Jobs and Skills Australia, subject to passage of the Jobs and Skills Australia Bill 2022. Around $13.5 million over four years is included in the Department of Employment and Workplace Relations annual administered expenses for the NSC (Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 41). [The bill passed both Houses on 27 October 2022].
This initiative was introduced in the 2021-22 Mid-Year Economic and Fiscal Outlook (p. 226) as a component of the 'Supporting Jobs in the Economic Recovery' measure. $19.7 million was allocated over three years from 2021-22 to increase the employability of skilled, onshore migrants, including those without a skills assessment or working below their skill level, by providing incentives to fast-track skills assessments in priority occupations.
The Australian Government has introduced three Skills Assessment Pilots to benefit around 9500 onshore migrants who will be able to access free, fast-tracked skills assessments, free employability assessments and subsidised training to improve their employment arrangements:
The Department of Employment and Workplace Relations 'Sub-program 2.1.1 - Skills Development' annual administered expenses include $14.415 million for the initiative in 2022-23, and $100 000 in 2023-24 (Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 41). The estimated actual annual administered expenses for 2021-22 are $3.742 million (Portfolio budget statements 2022-23: Budget related paper no. 1.5: Education portfolio, p. 74).
$100 million is committed over ten years, including investing $62 million allocated over four years in this budget (comprising around $52.5 million for New Energy Apprenticeships and $9.6 million for the New Energy Skills Program) to deliver the Skilling the Clean Energy Workforce, as key components of the Powering Australia Plan. To address Australia's growing skills demands in the clean energy sector, the Skilling the Clean Energy Workforce will provide financial support, assistance and mentoring directly to New Energy Apprentices. Fit-for-purpose training pathways for new energy industry jobs will be developed through the New Energy Skills Program to support Australia's workforce to transition to a clean energy economy. The Government will also provide funding to Jobs and Skills Australia to undertake a Clean Energy capacity study to provide the critical evidence and insights needed to support workforce planning, policy development and program design. This measure delivers on the Government's election commitment as published in the Plan for a Better Future (p. 11) (Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 17; Budget paper no. 2: Budget measures, p. 101).
This budget measure provides $44.9 million over four years from 2022-23 for the Department of the Prime Minister and Cabinet to support the Government's policy agenda, which includes supporting the development of a National Framework for Economic Transformation as part of the net zero economy and a National Strategy for the Care and Support Economy (Budget paper no. 2: Budget measures, p. 172).
$2 billion was allocated over five years from 2022-23 in the 2022-23 March budget (p. 150) to establish the Regional Accelerator Program (RAP) to drive transformative economic growth and productivity in regional areas. This budget announces three reversals of funding:
A South Australian Defence Industry Workforce and Skills Taskforce will be established, within the existing resources of the Department of Defence, to support the growth of a skilled defence industry workforce in South Australia (Budget paper no. 2: Budget measures, p. 83).
In the October 2022-23 budget, the Australian Government will provide funding of $2.3 billion (rounded) to support state skills and workforce development services, including:
The National Agreement for Skills and Workforce Development (NASWD) identifies the long-term objectives of the Commonwealth and the states in the areas of skills and workforce development. The National Skills and Workforce Development SPP is the funding associated with the NASWD.
The allocations to the states and territories for 2022-23 are: New South Wales $503.5 million, Victoria $409.6 million, Queensland $329 million, Western Australia $172.8 million, South Australia $112.9 million, Tasmania $35.7 million, Australian Capital Territory $28.5 million, and Northern Territory $15.8 million (Budget paper no. 3: Federal financial relations, p. 43).
The funding of $664.4 million provided through National Partnership and Project payments in 2022-23 comprises:
The Government is negotiating a $1 billion (12-month) Skills Agreement (the Agreement), cost shared with the states and territories. From January 2023 this will respond to immediate skills needs and provide opportunities for Australians to get the skills they need for secure and rewarding jobs. This commitment includes $493.3 million (to be matched by the states) to deliver 180 000 fee free TAFE and vocational education places from January 2023. The Agreement will target industries with severe skills shortages, including the care sector, technology and digital, hospitality and tourism, construction, agriculture, and industries important to sovereign capability. Fee free places will be made available through public TAFEs and public dual sector providers and other providers in exceptional circumstances, where TAFE does not have adequate existing capacity, including for example, by Aboriginal and Torres Strait Islander community-owned registered training organisations. The Agreement includes $24 million to support the success of students with complex needs, additional funding of $50 million for the TAFE Technology Fund to provide modern facilities including in regional Australia, and $7 million for essential VET data infrastructure reform (Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 16; Budget paper no. 3: Federal financial relations, p. 44).
In addition to the 12-Month Skills Agreement, the Australian Government will contribute $336.7 million towards making 300 000 TAFE places fee-free from 2024. The allocation of funding and places will be subject to further discussions with the states (Budget paper no. 3: Federal financial relations, p. 45).
The Government is committed to reforming and providing stable and long-term funding for VET through a five-year National Skills Agreement with the states and territories. This agreement will commence on 1 January 2024 and place TAFE at its heart. It will support the provision of high-quality, responsive, and accessible education and training. It will support Australians to obtain the relevant and transferable skills they need to participate in secure and rewarding employment, and to prosper in the modern economy (Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 16).
The Australian Skills Quality Authority (ASQA) was established under the National Vocational Education and Training Regulator Act 2011 (NVR Act) on 1 July 2011, following the referral of powers by the majority of state and territory governments. ASQA is accountable for the regulation of:
ASQA also provides national accreditation for courses to meet an established industry, enterprise, educational, legislative or community need (Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 111).
In 2022-23, ASQA will focus on: co-designing a model of provider self-assurance and development of regulatory approaches that promote self-assurance; refining its Regulatory Risk framework and Regulatory Operating Model; leveraging and supporting broader government data management initiatives to improve the way regulatory data is collected, stored, shared and utilised; ongoing implementation of an agency-wide approach to investment in staged digital enhancements to underpin its continuous improvement of regulatory best practice and support efficiencies for providers in interacting with the regulator; implementing new Service Standards to support a focus on efficient and effective regulation and the quality of interactions with providers; maturing an evaluation framework to demonstrate regulatory impact and continuous improvement of regulatory outcomes over time; operate a model of full cost recovery (Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 112).
ASQA estimates its total resourcing will be $63.461 million, which includes a departmental appropriation of $42.413 million for 2022-23 (Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 113).
$15.4 million funding over four years from 2022-23 (and $4.2 million per year ongoing) will be redirected from the Australian Skills Quality Authority to the Department of Employment and Workplace Relations to temporarily undertake assurance of training packages from 1 January 2023. Longer-term arrangements for this function will be considered as part of a post-implementation review in consultation with stakeholders (Budget paper no. 2: Budget measures, p. 104).
$28.5 million was allocated to ASQA in the 2022-23 March budget (pp. 78-79) over five years from 2021-22 to establish the assurance functions. Partial funding for this measure had already been provided for by the Morrison Government, and built on the 2021-22 budget measure titled 'Stronger Support for Skills Reform'.
The Employment and Workplace Relations portfolio comprises the Department of Employment and Workplace Relations (the department) and ten entities including the Australian Skills Quality Authority (ASQA). Under the Administrative Arrangements Order of 23 June 2022, the Department of Employment and Workplace Relations was established from 1 July 2022. The new department gained responsibility for employment, skills and vocational education from the former Education, Skills and Employment portfolio, workplace relations from the Attorney-General's portfolio and the Pacific Australia Labour Mobility (PALM) scheme domestic operations and policy from the Foreign Affairs and Trade portfolio (Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 3).
The Government will provide $921.7 million over five years from 2022-23 to strengthen Australia's Vocational Education and Training system and address skills shortages. Funding includes:
Around 180 000 fee-free TAFE and vocational education places will be delivered in 2023 in areas of highest skills need as part of a one-year National Skills Agreement with the states and territories commencing 1 January 2023, which was an outcome of the Jobs and Skills Summit. This measure delivers on the Government's election commitments as published in the Plan for a Better Future (p. 10) (Budget paper no. 2: Budget measures, pp. 104-105).
$20 million is allocated over four years from 2022-23 to provide more flexible delivery options for the Adult Migrant English Program (AMEP) and increase case management support to students. This measure delivers on the Government's election commitment as published in the Plan for a Better Future (p. 9) (Budget paper no. 2: Budget measures, p. 149).
Responsibility for the program was transferred to the Department of Home Affairs as part of reforms announced in August 2020, and included in the 2020-21 budget (2020-21 Budget paper no. 2: Budget measures, p. 112).
The Government will redirect funding of $12.3 million over four years from 2022-23 following Australia's temporary withdrawal from the Organisation for Economic Co-operation and Development's (OECD) Program for the International Assessment of Adult Competencies (PIAAC) survey. The savings from this measure will be redirected to develop and deliver a new national study on adult literacy, numeracy and digital literacy skills, led by Jobs and Skills Australia. The study will consist of a national survey to assess adult foundation skills levels, analysis of Commonwealth data, and a study into ensuring on-going representation of First Nations peoples in foundation skills studies. To support initial implementation, $2.6 million in funding has been brought forward from 2025-26 to 2023-24. The study is referred to as the 'National Study on Adult Literacy, Numeracy and Digital Literacy Skills' in the Employment and Workplace Relations Portfolio budget statement (Budget paper no. 2: Budget measures, p. 100; Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 17).
The relaxation of work restrictions for student visa holders and secondary training visa holders will be extended until 30 June 2023 (Budget paper no. 2: Budget measures, p. 83).
$25.8 million is provided over four years for the department to expand and reform the Pacific Australia Labour Mobility (PALM) scheme, which includes enabling a further 500 PALM scheme workers to complete their Certificate III in Individual Support (Ageing) to support the aged-care sector in Australia (Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 18).
Annual administered expenses estimated under 'Sub-program 2.1.1 - Skills Development' and 'Sub-program 2.1.2 - Access to Training' include:
The total component 2.1.1 expenses for 2022-23, including the Special Appropriation for Trade Support Loans ($97.176 million) are estimated to be around $3 billion, and $143.027 million for component 2.1.2 (Portfolio budget statements 2022-23: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 40).
For more information about these initiatives, see the VET Knowledge Bank Timeline of Australian VET policy initiatives 1998-2021.
This budget measure includes $5 million in 2022-23 to upgrade training and accommodation facilities at the National Aboriginal and Islander Skills Development Association Dance College and $2.4 million over four years from 2022-23 (and $1.0 million per year ongoing) to support the ongoing financial sustainability of the national performing arts training organisations (Budget paper no. 2: Budget measures, p. 167).
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* A second budget was released for the 2022-23 financial year by the new government elected in May 2022.
NCVER (National Centre for Vocational Education Research) 2022, Budget highlights: Commonwealth 2022-23, VET Knowledge Bank, NCVER, Adelaide, <https://www.voced.edu.au/vet-knowledge-bank-policy-initiatives-budget-highlights-commonwealth-2022-23-0>.
This page is a product in the VET Knowledge Bank, a living resource that NCVER continues to develop and update on an ongoing basis.
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