5National specific purpose payments for skills and workforce development for 2020‑21

5 National specific purpose payments for skills and workforce development for 2020‑21

(1) For the purposes of subsection 12(4) of the Act, the total amount under paragraph 12(2)(c) of the Act is to be indexed for the 2020-21 financial year in the manner set out in paragraph D27 in Schedule D to the Intergovernmental Agreement using the estimates published in the 2021-22 Budget. The result of the determined manner of indexation for the 2020‑21 financial year is that the total amount is to be indexed by applying a growth rate of 1.43 per cent.

Note 1: Paragraph D27 in Schedule D to the Intergovernmental Agreement provides that the growth factor for national skills and workforce development specific purpose payments is calculated according to the following formula:

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Note 2: The Wage Cost Indices are weighted averages of movements in a wage component and the All Groups Consumer Price Index published by the Australian Statistician, to reflect movements in labour and supplier costs respectively. The wage component is calculated from dollar increases in the national minimum wage determined by the Fair Work Commission, expressed as a percentage of the latest available Average Weekly Ordinary Time Earnings figures published by the Australian Statistician.

(2) Under paragraph 12(2)(c) of the Act, the total amount of all financial assistance payable under subsection 12(1) of the Act to the States for the 2020-21 financial year is $1,560,567,868.01. (3) For the purposes of subsection 12(5) of the Act, the manner in which the total amount stated in subsection (2) of this section is to be divided between the States is the manner set out in the Intergovernmental Agreement. Each item of the following table specifies the resulting amount that is to be paid to the State specified in the item, for the purpose of making a grant of financial assistance for the 2020-21 financial year, for the purpose of expenditure on skills and workforce development: