The announcement by the Tasmanian government on Saturday to provide payroll tax relief to businesses employing young people and trainees is a step along the road to retaining our young people in the state.
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From June 1 there will be a reduction in the amount of payroll tax that needs to be paid for two years for businesses that employ an apprentice or trainee, and payroll tax relief for a year for those employing a young Tasmanian aged 15 to 24 who isn’t a trainee or apprentice.
Youth unemployment has long been an issue for the state and anything that supports providing more pathways into employment should be welcomed.
Australian Bureau of Statistics figures released in 2016 show Tasmania has the highest population loss to interstate migration in the age bracket of 20 to 29 than any other state.
The ABS said this could be related to study and employment opportunities in Tasmania compared to other states and territories.
Tasmania also has the lowest number of interstate migrants aged 20 to 29 arriving.
The number of apprenticeships in Tasmania has been declining for four consecutive years, prompting the federal government earlier this year to begin an investigation into the plummeting trend.
In the last financial year there were just 7,700 apprentices training, down from 8,500 the year before and a huge drop from 2012 when there were 12,900.
The Examiner reported in December that skyrocketing costs, including payroll tax, was cited by builders as a cause for the drop in the number of apprentices hired.
In March Launceston business Presnell Bodyworks said it was turning to apprentices to solve a skills shortage in their industry, and it was working well for them.
With ongoing skills shortages in the state, increasing the number of apprenticeships could be a win-win, providing much needed workers while also improving employment opportunities for young Tasmanians.
To tackle the lack of job opportunities young people face requires a multi-pronged approach, and providing multiple pathways into employment is key in achieving this.
Young Tasmanians should feel they have more options open to them than moving interstate.
The government said it expects the payroll tax relief will create about 6,500 jobs for young Tasmanians. For the future of our state let’s hope so.
