The Federal Government’s target for 80% of Australians to hold a post-school qualification by 2050 underscores the importance of expanding access to education and training. Achieving this requires financial support for students to study with a broader range of providers, including private institutions. A diverse provider ecosystem is essential to ensure the capacity and flexibility to accommodate the increasing demand for skills training. Students should have the freedom to choose the institution best suited to their needs, fostering competition and driving improvements in the quality and innovation of education delivery. Australia needs a more integrated tertiary education system if we are to achieve our national objectives for productivity, participation and prosperity.

1. Widening participation

While a range of initiatives already exist with the aim of widening participation in education and work, more can be done to support and promote the participation of those keen to make their contribution to a thriving national economy. For example, many employers responding to our 2024 Workforce Skills Survey also pointed to the value of supporting the participation of parents in the workplace, highlighting the un-tapped potential available through better support for childcare and early learning. Strategic investment in supporting access to affordable childcare will also help unlock a valuable labour resource that is readily available. 

Opportunities also exist for supporting the participation of parents and older workers. Many employers are re-employing staff and employing older workers in meeting their skills needs. This emerged as a clear trend in the 2024 Workforce Skills Survey. They highlighted a range of benefits that follow from recruiting more experienced staff, from enhancing productivity to facilitating workplace training and improving workplace culture. 

The NSW labour market has tremendous un-tapped potential. This remains underutilised due to structural constraints both State and Federal. Reforming policies that restrict workforce participation will help unlock a valuable labour resource that is readily available.

Opportunities for boosting workforce participation in NSW include to:

• Double the current Work Bonus program limit for the age pension to allow senior and retired workers greater flexibility making an invaluable contribution to the labour force; and
• Invest in childcare funding to make more places available to help parents re-enter the workforce, with retention strategies and learning pathways to build and retain the skilled workforce needed to support families and children in their early years.

2. Supporting apprentices and trainees

NSW’s apprenticeship and traineeship system is a key incubator of the future workforce. While the current model has delivered positive results, feedback from industry and the continued decline in participation clearly indicates further reform is needed. The Federal Government needs to ensure findings from the recent Strategic Review of the Australian Apprenticeship Incentive System are matched with substantial investment in making the most of the strategic opportunities available. The review also provides an opportunity for implementing a more integrated approach to supporting Australia’s apprenticeship system. 

A strategic, broad-based policy response is needed if we are to build a sustainable skills base for our economy - one that involves employers, RTOs and government. Opportunities for improvement include supporting and promoting good practice in recruiting, retaining and supporting apprentices to succeed, in line with the Apprenticeship and Traineeship Roadmap 2024-2026 recently released by the NSW Government. The Federal Government needs to make the most of the Strategic Review of the Australian Apprenticeship Incentive System in supporting a collaborative, broad-based and strategic approach to building and sustaining apprenticeships and traineeships in the broader context of renewal and reform of vocational education and training in NSW.

Opportunities for improvement include to:

• Ensure the Strategic Review of the Australian Apprenticeship Incentive System leads to substantial improvements in expanding participation in apprenticeships and traineeships across NSW;
• Implement incentives and support to encourage the commencement, retention and completion of apprentices and trainees, maximising the benefits of structured training, workplace mentoring and work experience;
• Invest in strategic initiatives for apprenticeships in regional areas, ensuring access to training, support and skills development opportunities;
• Encouraging good practice in attracting apprentices and trainees and supporting them for success.

3. A more integrated tertiary education system

A series of Commonwealth reviews and initiatives align with the broad imperative of working toward a more integrated tertiary education system. These reflect the broad aims described in the Employment White Paper, the Australian Universities Accord and ongoing undertakings as part of the National Skills Agreement. They include the development of a national skills passport, a national skills taxonomy and the reform of qualifications and pathways between vocational and higher education. 

Business NSW emphasises the critical role of qualifications and skills in ensuring businesses have the workers they need now and into the future.

Relevant considerations in the context of a more integrated tertiary education system include:

• Supporting providers of education and training in working toward a more modular approach to curriculum development, course design and pathways to learning, in consultation with industry;
• The recognition of qualifications and skills across different regions and industries;
• Recognition of prior learning, facilitating training, development and re-skilling across the workforce;
• Digital integration leveraging new technologies to ensure secure access, verification and validation of credentials; and
• Alignment with international standards to help ensure Australian workers a remain competitive in a global context.