The Prime Minister today confirmed that the 2011 Budget would include $281 million for additional tax free payments to encourage apprentices in critical trades to complete their qualifications.
The $1,700 Trades Apprentice Income Bonus is expected to support 200,000 trade apprentices over four years in skills shortage occupations to stay in their training and get a skilled job.
An additional 50,000 Australian Apprentices are expected to start and remain in their Australian Apprenticeship by 2014 as a result of the payments, increasing the number of skilled workers ready to meet the demand for high skilled labour.
As a result of the Gillard Government's investment in training there are now more than 448,000 apprentices and trainees studying across Australia.
Unfortunately, current experience tells us that only half of these students will complete their training.
When students fail to finish their training they miss out on achieving their full potential and employers miss out on the valuable contribution these individuals could make as skilled workers in our economy.
The Gillard Government is determined to boost the apprentice completion rate and provide practical support to apprentices during their training.
From 1 January 2011, eligible Australian Apprentices have received an additional tax exempt bonus of up to $1,700 as they reach milestones in their training, including an $800 completion bonus, bringing them to a total of a maximum of $5,500 over the course of their apprenticeship.
The incentive payments were announced in the 2010 Election as part of a package to support Australian Apprentices and as at May 2011, more than 34,000 Australian Apprentices have already benefited from this new payment.
The Gillard Government is committed to ensuring the Australian Apprenticeship system is simplified, streamlined and better targeted to meet the critical skills needs of the Australian economy.
That is why we will continue to work in partnership with industry, training providers and the states and territories toward a more simplified and nationally consistent system which provides relevant, quality training on and off the job.