There are substantial opportunities for enhancing productivity and widening participation in regional Australia. Our 2024 Workforce Skills Survey found that geographical location itself posed a challenge for 27% of NSW employers (29% of those facing a skills shortage), with many struggling to attract workers to regional locations. Difficulty accessing relevant local training opportunities also remained a challenge for 17% of employers. These challenges are accompanied by a range of follow-on impacts for regional communities. Employers also found it difficult to attract workers to remote locations, putting even greater pressure on existing staff challenged with maintaining service standards across regional NSW.

Employers in regional NSW are facing particular challenges in meeting their skills needs. These include difficulties in recruitment, access to affordable housing and access to relevant education and training opportunities. The NSW Skills Plan 2024–28 aims to establish a new regional skills planning model that embeds stronger community-based decisions and supports collaboration, connection and innovation within local communities. This includes the establishment of place-based and industry-specific compacts for workforce development. These compacts would see local employers, training providers, and community organisations working together on collaborative programs and initiatives in meeting skills needs. 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.

Other opportunities for improvement include to:

• Introduce Fringe Benefits Tax concessions for employer-provided housing in areas of acute skills shortage; 
• Ensure vocational education and training opportunities are available across the state through implementing a Student Access and Training Commitment to improve access to training that is both local and relevant as part of the TAFE NSW Charter (in line with recommendation 9 of the NSW VET Review); and
• Establish a Regional Skills Fund to foster innovation, collaboration and the development of local solutions that are fit for purpose across NSW.