The Morrison government has made reskilling Australia a key plank of its pre-election budget, with a boost to spending on apprenticeships and tax incentives for small businesses to train workers.
Treasurer Josh Frydenberg's 2022/23 budget forecasts the unemployment rate to fall to 3.75 per cent later this calendar year to the lowest level since August 1974.
The jobless rate will stay at that 50 year low for two more financial years, before kicking back up to four per cent in 2025/26.
The unemployment rate currently sits at four per cent, a 14-year low.
With the pool of skilled workers shrinking during coronavirus-induced border closures, the government will splash the cash to train-up Australians.
Some $2.8 billion will be spent over five years to boost completion rates for apprenticeships, with $5000 in support payments going to trainees, and up to $15,000 in wage subsidies for employer who take them on.
"Australia's unemployment rate is heading towards a 50-year low," the treasurer said in his budget speech.
"We have a historic opportunity to get young Australians into skilled, secure and well-paid jobs."
A further $3.7 billion will go to 800,000 additional training places under a new National Skills Agreement with states and territories.
Small businesses will also be rewarded for upskilling staff, with a $120 tax deduction for every $100 spent on training.
The measure will run until June 30, 2024, and provide about $550 million in tax relief to businesses.
Mr Frydenberg said the training incentive would help small businesses become more productive and competitive.
"No one knows better than a small business owner what skills they need in their employees," Mr Frydenberg said.
The forecast unemployment rate compares to the 4.25 per cent predicted for 2022/23 at the time of the mid-year review in December.
The forecast was six per cent in the October 2020/21 budget, the first of the COVID-19 pandemic.
Prime Minister Scott Morrison said the spend on training and apprentices would help provide Australia's workforce of the future.
"By backing Australian apprentices and trainees we're getting more people ready for the jobs that will set them up for life," he said.
"These investments will mean more skilled workers, lower unemployment, and a stronger future not just for apprentices and trainees, but for Australia."
