Investing in vocational education and training
The Vocational Education and Training (VET) sector serves a critical role in the NSW economy. It provides pathways to education and work and helps ensure that businesses have access to the skills they need. There are significant reforms occurring at both the state and federal level that promise to substantially improve the quality, availability and relevance of vocational education and training opportunities. However, these reforms will need to be matched by ongoing funding commitments if they are to be sustainable. They will be essential if we are to keep Australia on track for productivity and prosperity.
Business NSW initiatives in skills and education align with major policy initiatives being undertaken by the NSW Government. These include the NSW Skills Plan 2024-28, the NSW Digital Skills and Workforce Compact, the NSW Higher Education Strategy 2025−29, Apprenticeship and Traineeship Roadmap and outcomes associated with the NSW VET Review 2023–24.
The NSW Skills Plan 2024–28 sets out a vision for a skills system that supports participation and drives economic growth in NSW. The plan aims to strengthen the VET system and ensure a future-ready workforce for NSW. It aligns with the NSW Government’s ongoing commitments under the National Skills Agreement and provides the basis for responding to the NSW VET Review 2023–24. Business NSW is working with the NSW Government on the development and place-based and industry-specific compacts for workforce development and other strategic initiatives arising from the NSW Skills Plan 2024–28.
Inconsistency and uncertainty have hindered the ability of providers of VET to meet the demands of businesses and students. Regional business, for example, report that VET courses are often full, cancelled, or unavailable due to funding and staffing constraints. Others have reported a poor alignment between the training on offer and contemporary skills needs. There remains scope for ensuring the courses funded through the NSW Government’s Smart and Skilled program are able to keep pace with current and future labour market demands. Providers need certainty if they are going to be able to ensure the quality and relevance of their programs. The volatility and uncertainty associated with the Smart and Skilled program in its current form remains an impediment to quality, innovation and scale in our education and training system.
Substantial investment in vocational education will be essential if we are to meet our current challenges and sustain a skilled workforce in the longer term.
Opportunities for doing so include to:
- Ensure TAFE NSW serves as the gold standard for VET, ensuring quality, consistency, and industry relevance (in line with recommendations 1, 2 and 3 of the NSW VET Review);
- Strategic investment in facilities will also be essential in ensuring TAFE remains at the heart of regional communities (in line with recommendation 21 of the NSW VET Review); and
- Ensure that the NSW and Federal Governments ensure funding growth for vocational education and training, in real terms, for the life of the National Skills Agreement.
See our pre-budget Submission to the NSW State Budget and submission to the NSW VET Review for more information on investing in vocational education and training.