This Budget has a strong focus on measures to remove general inequity in the workforce by providing support to parents, to encourage older Australians to continue working and to support the growth of our future workforce by investing in skills and apprenticeships. The Government has also set aside significant funding of $4.7 billion to deliver cheaper childcare and $43.2 million to update the workplace laws to ‘get wages moving’, boost job security, address gender inequity and create more opportunities for Australians.
Supporting parents
Expanding paid parental leave
The Government is further expanding the Paid Parental Leave scheme, by increasing the number of weeks available to families from a total 20 weeks leave in July 2023 up to a total 26 weeks leave by July 2026, at a cost to the budget of $531.6 million over 4 years from 2022–23 (and $619.3 million per year ongoing).
This change will include a ‘use it or lose it’ portion of leave reserved for each parent to encourage and facilitate both parents to access the scheme and to share caring responsibilities. The reforms also improve flexibility, with parents able to take leave in blocks as small as a day at a time, with periods of work in between.
Eligibility will be expanded through the introduction of a $350,000 family income test, which families can be assessed under if they do not meet the individual income test.
Cheaper childcare
The Government will provide $4.7 billion over 4 years from 2022–23 (and $1.7 billion per year ongoing) to deliver cheaper childcare, easing the cost of living for families and reducing barriers to greater workforce participation. This measure includes:
- increases the maximum Child Care Subsidy (CCS) rate from 85% to 90% for families for the first child in care and increase the CCS rate for all families earning less than $530,000 in household income; and
- maintains current higher CCS rates for families with multiple children aged 5 or under in childcare, with higher CCS rates to cease 26 weeks after the older child's last session of care, or when the child turns 6 years old
Update workplace laws
The Government will provide $43.2 million over 4 years from 2022–23 (and $11.1 million per year ongoing) to update workplace laws to get wages moving, boost job security, address gender inequity and create more opportunities for Australians.
Changes to the Fair Work Act 2009 will include making gender equity and job security objects of the Act, establishing a statutory equal remuneration principle, limiting the use of fixed term contracts, expressly prohibiting sexual harassment in the workplace and providing access to 10 days of paid family and domestic violence leave.
Incentivising pensioners into the workforce
The Government will provide $61.9 million over two years from 2022–23 to provide age and veterans pensioners a once off credit of $4,000 to their Work Bonus income bank. This measure will increase the amount pensioners can earn in 2022–23 from $7,800 to $11,800, before their pension is reduced, supporting pensioners who want to work or work more hours to do so without losing their pension.
Investment in skills and apprenticeships
The Government will:
- provide $871.7 million over 5 years from 2022–23 to provide 480,000 fee-free Technical and Further Education (TAFE) and vocational education places in industries and regions with skills shortages;
- provide $485.5 million over 4 years from 2022–23 (and $563.8 million over 11 years) for 20,000 additional Commonwealth supported places at universities and other higher education providers commencing in 2023 and 2024 for under-represented Australians (including First Nations peoples, those who are the first in their family to study at university, and students from rural and remote Australia) and for courses in areas of skills shortage (including teaching, nursing and engineering);
- provide $310.4 million over 9 years from 2022–23 (and $7.9 million per year ongoing) to attract and retain high-quality teachers and improve student outcomes;
- 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;
- provide $95.6 million over 9 years from 2022–23 to support 10,000 people to complete a New Energy Apprenticeship;
- provide $50.0 million over two years from 2022-23 to establish a TAFE Technology Fund to modernise IT infrastructure, workshops, laboratories, telehealth simulators, and other facilities at TAFEs across Australia; and
- provide $9.6 million over 5 years from 2022–23 to support Australia’s workforce to transition to a clean energy economy, including the creation of a new mentoring program to help train and support new energy apprentices.
