VET News

Are Students Being Placed at the Heart of the VET System?

The 2022 NCVER Government Funding of Vocational Education and Training report shows that in 2022, the government spent more than ever on skill training.

About $5.5 billion was given to the skills training sector for VET delivery that year. This was the most money ever given for this reason in a similar data record. This amount is $863 million more than what was given in 2017.

In the same way, $743 million was spent on system management and governance in 2022, which was more than any other year since 2017 (data from that year includes $299.1 million from the Australian Government).

Concerning students and companies that need skilled workers is the fact that 74.7% of funding for skills training and capital funding went to public providers alone. This is a shockingly high number, considering that TAFE colleges only help 15.9% of students in skills training.

Even though they helped 89.4% of students enrol in skills training, independent providers only received 20.1% of the funds for delivery and capital.

The Australian Government says it wants to give more money to TAFE colleges, but students and companies clearly want to study with independent RTOs. This means that policy outcomes will not match student preferences.

Other information from NCVER shows that when it comes to the money that taxpayers spend on skills training, private RTOs give the best return. At every level of qualification, the NCVER statistics shows that private RTOs have up to 17% higher completion rates for government-funded students than public TAFE colleges.

This data is critical as the Australian, state, and territory governments consider the implementation of the national skills funding agreement. ITECA believes that a reconsideration of Australian Government policy is required. The policy position being put forward by them is that students need to be at the heart of the skills training system, where the government supports their informed decision to study with either a public TAFE college or an independent RTO with a commitment to quality.

Access published data and media releases below:

• Government VET expenditure at record high - National Centre for Vocational Education Research - 26 October 2023
• Report: Government funding of VET 2022 - National Centre for Vocational Education Research - 26 October 2023
• Government skills funding imbalance - Independent Tertiary Education Council Australia - 26 October 2023

Date posted Nov 9, 2023