VET News

Greater Investment and Support Required for Independent Training Providers

The peak organisation representing small businesses, the Council of Small Business Organisations Australia (COSBA), has advised the Australian Government that it should ‘adequately resource and support’ independent Registered Training Organisations (RTOs).

The support for independent RTOs from COSBOA is significant given its broad representation of small businesses. Collectively, COSBOA’s members represent an estimated 1.3 million of the 2.5 million small and family businesses that operate in Australia.

In its advice to the Australian Government, the small business advocacy has said that across a wide range of industries, small business has identified worker shortages and skills shortage. In this context, it has recommended a greater investment in the independent skills training sector to ensure long term reform in a fiscally responsible manner.

Of significance was COSBOA’s support for independent RTOs, to advice that in the 2023 Australian Government budget, they seek further consideration of the VET training funding model to ensure that the substantial qualifications and skills training that are provided by the private training sector are adequately resourced and supported by Government.

Government data referenced in the ITECA State Of The Sector Report underpins the level of support for the independent skills training sector.  On key metrics such as the trainer's knowledge and experience, relevance of skill taught and overall employer satisfaction, independent RTOs achieve the highest scores.

The Australian Retailers Association has also advised the Australian Government that great taxpayer support needs to be provided to students studying with independent Registered Training Organisations.

The recommendation was made in ARA’s submission to The Treasury to support development of the 2023 Australian Government budget. In its submission, it recommends increased investment in retail traineeships to help future-proof the sector and reposition retail as a career.

Given that a new report shows that independent skills training achieves the best outcomes for taxpayer's, the ARA's advocacy in support of independent RTOs comes at a critical time.  It follows similar advocacy by the Australian Chamber of Commerce and Industry (ACCI) that firmly argued that the Australian Government should allow students to study with the provider of their choice rather than preferencing public providers in funding decisions.

See the full media releases from the Independent Tertiary Education Council Australia by clicking on the links below:

• COSOA backs independent Skills Training Providers - 14 February 2023
• ARA backs independent skills training in advice to government - 10 February 2023

Date posted Feb 15, 2023