The Trades Apprentice Income Bonus Scheme announced by Prime Minister Julia Gillard this week will help alleviate high rates of debt among apprentices.
The policy will increase the payments already introduced by Labor to boost apprentice retention and help build skills.
Under the new policy, The Trades Apprentice Income Bonus will be paid on top of the existing Tools For Your Trade payments. This means, as trade apprentices like carpenters, bricklayers and motor mechanics reach milestones each year they will get an additional:
• $200 - bringing the 12 month payment to $1,000.
• $200 - bringing the 24 month payment to $1,000.
• $500 - bringing the 36 month payment to $1,200.
• $800 - bringing the completion bonus to $1,500.
The bonus scheme boosts the tax-free payments apprentices receive at the end of each year at training.
On Tuesday, National Secretary Dave Oliver and Queensland Secretary, Andrew Dettmer, met with apprentices at the All Trades apprentice centre in Brisbane, to discuss this and other policies in the lead up to the federal election.
“The conservatives have consistently devalued trades training, allowed skills shortages to build up, and then sought to solve the problem with temporary labour from overseas through 457 visas,” Dave Oliver said.
“It’s so important that we invest in skills and apprentices are the key to our future. This is another welcome step forward from Labor, which has attempted to turn around the mess left by the Coalition last time they were in government.”
2nd year apprentice fitter and turner, Ryan Bosworth, said that the money was welcome.
“We know that once we get our trade, we’ll be earning good money. It’s while we’re going through that we need some assistance.”
Low rates of pay are a significant factor in the high drop-out rate among apprentices with up to 50% of apprentices failing to complete their training in some trade areas.
A survey of NSW apprentices conducted by the AMWU earlier this year found 30% of apprentices were using credit cards to pay everyday living expenses and many struggled to live independently.
“Our survey found apprentices are living on credit during their apprenticeship and finishing up with a debt,” said AMWU NSW Secretary Tim Ayres.
“The increased bonus payments throughout the training period and when they finish their apprenticeship will help them manage their debt and tide them through until they get a job,” he said.