Coalition Apprentice help...

[Rorschach]

Coalition leader Tony Abbott floats new loans scheme for apprentices offering up to $20k for young workers
* by: SAMANTHA MAIDEN NATIONAL POLITICAL EDITOR
* From: The Sunday Telegraph
* August 24, 2013 10:00PM

TONY Abbott's big pitch to blue collar workers will include a new loans scheme for apprentices providing up to $20,000 for young workers.

The Opposition leader will launch his campaign in Brisbane today with a HECS-style loans scheme designed to help buy tools and equipment and encourage apprentices to complete their training.

As a wave of polls continue to confirm Mr Abbott is on track to be elected Prime Minister on September 7, the Coalition will today launch a bold bid to woo Labor's heartland.

The interest-free loans will be available to apprentices in areas of national skill shortages providing up to $20,000 over four years to help them with their costs during their apprenticeship.

Eligible trades will include plumbers, diesel mechanics, electricians, and fitters. The independent Parliamentary Budget Office has costed the scheme at $80 million.

But tradies will be asked to pay back the cash when they start earning more, at the same thresholds as fee-help loans for university students. Currently, university students start paying back their loans through the tax system when their salary hits $49,000.

Apprentices will have a big incentive to complete their apprenticeships - an immediate 20 per cent discount on their Trade Support Loans if they finish their training.

"I want young Australians to be equipped with the skills they need to secure their long term job prospects in a dynamic economy,'' Mr Abbott told The Sunday Telegraph.

"This is about helping Australians start an apprenticeship, stay in an apprenticeship and, importantly, to complete an apprenticeship."

Debts will not have an interest rate charged but will be indexed annually to the Consumer Price Index to maintain the real value of the debt.

The policy document outlining the scheme states: ``Australia urgently needs more apprentices. We need more young people to take up a trade career to ensure future growth and jobs.''

``Fewer and fewer apprentices are actually completing an apprenticeship once they start. Completion rates are now 48 per cent.''

``Many apprentices face considerable costs when they start their apprenticeships. Standard `tools kits' for plumber, carpentry, automotive and electrician apprenticeships cost about $800 and costs of over $1000 are not uncommon.

``For a first year plumbing apprentice earning roughly $12 an hour, an $800 outlay is a considerable cost and may very well be unachievable given the necessity of funding basic living expenses at the same time.''

The loans will be spread over four years but offer the biggest slice of cash in the early years of an apprenticeship when earnings are at their lowest.

In the first year, Mr Abbott's tradies loans would offer apprentices $8000 paid in quarterly instalments of $2000.

In the second year, four payments of $1500 would be offered to a maximum of $6000.

Third year apprentices would be eligible for a $4000 top up and in 4th year apprentices could secure $2000 annually.

Loan instalments would immediately stop if apprentices dropped out of training.

The Coalition's Trade Support Loans will only be available to an apprentice who is undertaking a Certificate III or IV qualification that leads to an occupation listed on the National Skills Needs List.

[Aussie]

There are existing provisions in State Awards for tool allowances, paid over the term of an apprenticeship and designed to ensure the apprentice can buy tools commensurate with their skill levels as they progress.

This by Abbott seems to be a duplications of sorts.

[Rorschach]

Obviously there are assistance schemes in each state and territory of some kind, as well as federal funding, but it seems to me to be largely inadequate. Or at least I've never heard a really happy apprentice or employee in regards to it. I should imagine the Coalition scheme would roll all or some existing financial assistance into the new policy package.

Some information on current assistance for Apprentices...

Financial Assistance

There is a range of State and Commonwealth Government finance assistance that you may be eligible for to help you stay in your apprenticeship or traineeship.

From the State Government:

* Travel and accommodation assistance
* Travel concession card
* Car registration rebate
* Relocation assistance

From the Commonwealth Government:

* Living away from home allowance
* Assistance to buy tools for your trade
* Support for adult apprentices

http://www.training.nsw.gov.au/individu ... Assistance" onclick="window.open(this.href);return false;

[mantra]

But tradies will be asked to pay back the cash when they start earning more, at the same thresholds as fee-help loans for university students. Currently, university students start paying back their loans through the tax system when their salary hits $49,000.

How many thousands of students remain perpetual students under this scheme or end up working in some low paid job? There are billions of dollars in unpaid HECS debt and it's likely to stay that way.

Plenty of room for dropouts and those whose wages will never exceed $49,000. What a waste and as Aussie said - a duplication of what already exists.

[Rorschach]

But tradies will be asked to pay back the cash when they start earning more, at the same thresholds as fee-help loans for university students. Currently, university students start paying back their loans through the tax system when their salary hits $49,000.

How many thousands of students remain perpetual students under this scheme or end up working in some low paid job? There are billions of dollars in unpaid HECS debt and it's likely to stay that way.

Plenty of room for dropouts and those whose wages will never exceed $49,000. What a waste and as Aussie said - a duplication of what already exists.

So you don't like HECS... gee who brought that in? Hmmmm Bob Hawke? The ALP?

It is not duplication of what already exists.
(Whatever Aussie thinks and you apparently don't get.)
It is offering trade apprentices an option similar to University students.
(Why shouldn't they get it?)
If they finish their course they get a discount. A further incentive to finish.
Many tradespeople earn a very good living, way above $49,000, ever heard of Plumbers?

[Black Orchid]

I think this is a good thing. We need to be helping and encouraging young people to do apprenticeships rather than importing more and more foreign workers.

I would rather see the money being spent here than on paid parental leave.