Australian Federal Budget 2024-25: Vocational Education and Training (VET) Investments in Skills, Education and Workforce Development

The team at Aspire recognises the importance vocational education plays in building skills that improve lives, and we welcome strategic investment and communication activities that raise the status of VET and encourage vocational pathways.

The Australian Federal Budget 2024-25 introduces significant investments to support students and enhance workforce readiness across key sectors. These initiatives aim to address both immediate and long-term needs, fostering a resilient and adaptable economy. Improving access to education and reducing financial barriers enhance social and economic mobility, where individuals can benefit from economic and social advancements achieved through upskilling.

To help distil key announcements, Aspire has pored through the budget and highlighted key investments and initiatives related to education and workforce planning. These VET investments are part of a broader strategy to strengthen the nation's economic foundation by ensuring the workforce is skilled and adaptable to meet the needs of a changing economy.

Investment snapshot

• $30 billion in VET sector investment over five years to support the National Skills Agreement
• $265 million over four years to create apprenticeship commencement incentives
• $91 million over five years for skilling the clean energy workforce
• $90.6 million over three years for skills and training for the construction sector
• $55.6 million over four years for building women’s careers in traditionally male industries
• $58.2 million over four years to support prac payments for enrolled nurses
• $15.9 million over four years towards tertiary harmonisation to cimprove coordination and student opportunity
• $10.6 million over four years to implement the Australian Skills Guarantee
• $9.5 million over one year to support Jobs and Skills Australia
• $6.1 million over one year invested into the National Careers Institute
• $4.45 million over one year for fee-free TAFE awareness and promotion of VET enrolments
• Additional 320,000 fee-free TAFE places from 2024 to 2026

Key Initiatives

Practical Payments for Students aims to support students in fields with substantial practical training, such as nursing. Financial support during practical training aims to reduce dropout rates, encouraging students to complete their education and enter the workforce as well-prepared professionals.

HECS Debt Reduction seeks to reduce Higher Education Contribution Scheme (HECS) debt for approximately 3 million graduates. Making higher education more accessible and affordable, this initiative seeks to encourage more students to pursue higher education and reduce the financial burden on graduates, promoting economic activity and financial security.

Expanded fee-free TAFE placements will provide 20,000 fee-free TAFE places relevant to the housing and construction sectors, including 5,000 for pre-apprenticeships, to address critical skills shortages. Removing financial barriers to vocational education and training (VET) supports immediate skill gaps and long-term workforce sustainability, preparing individuals for successful careers in essential trades.

Specific Sector Investments

Skilling the Clean Energy Workforce

• $91.0 million over five years to rapidly scale up Australia’s capacity for clean energy skills
• $50 million in capital funds for rapid facility upgrades to expand clean energy training capacity in TAFEs and RTOs
• $30 million to enhance the clean energy teaching workforce
• $3.3.m dedicated to advocacy and promotion of clean energy careers
• $1.8m in reimbursements for group training organisations (GTOs) to reduce fees for small to medium enterprises (SMEs) engaging apprentices
• $1.4m scoping study into international clean energy apprenticeships
• Support for small and medium businesses through Group Training Organisation services
• Study on using the international education sector to address skills shortages
• Expand eligibility criteria for the New Energy Apprenticeship Program (NEAP)

Skilling the Construction Workforce to Support Housing Supply

• $90.6 million over three years to grow the housing and construction workforce
• $62.4 million for an additional 15,000 Fee-Free TAFE and VET places
• $26.4 million for the Pre-Apprenticeships – Trade Experience Program, offering 5,000 places over two years
• $1.8 million to streamline skills assessments for migrants in housing and construction
• Boost VET enrolments by increasing fee-free TAFE, industry RTO training places and skills assessments for qualified migrants.
• Streamlining skills assessments for around 1,900 potential migrants from countries with comparable qualifications.
• Prioritse processing ~2,600 skills assessments for Trades Recognition Australia

Supporting Women in Higher Paying Careers through VET Pathways

• $55.6 million over four years to deliver structural and cultural change across key industries to increase women’s access to VET-based careers.
• Building Women’s Careers program to support women in flexible, safe and inclusive work environments
• Continuation of support for women apprentices in priority occupations
• Targets for women within the Australian Skills Guarantee
• Tripartite partnership project grants

Australian Apprenticeships Incentive System

• $265.1 million over four years to support priority occupation apprentices and employers, including a strategic review of the incentives system and long-term polict design.
• Additional $2,000 for apprentices in priority areas (total $5,000)
• Additional $1,000 for employers hiring apprentices in priority areas (total $5,000)
• $10.6 million for the Australian Skills Guarantee to ensure national targets for apprentices, trainees, and paid cadets are met
• Introducing the Skills Guarantee Procurement Connected Policy to implement the Guarantee
• Leverage Commonwealth purchasing power to drive sustainable change through investment in infrastructure and ICT

Australian Skills Guarantee

• $10.6 million for the Australian Skills Guarantee to ensure national targets for apprentices, trainees, and paid cadets are met
• Introducing the Skills Guarantee Procurement Connected Policy to implement the Guarantee
• Leverage Commonwealth purchasing power to drive sustainable change through investment in infrastructure and ICT

Response to Universities Accord & Prac Payments

• $58.2 million to support VET students in mandatory work placements, particularly in nursing and midwifery
• VET students studying a Diploma of Nursing will be able to claim a prac payment of $319.50 per week for mandatory clinical practice placements
• $27.7 million over four years as part of a broader strategy to strengthen Australia's higher education system, promote access, and enhance the quality and relevance of university education
• $15.9m over four years towards tertiary harmonisation that aims to better align Vocational Education and Training (VET) with higher education.
• Improved tertiary collaboration and credit recognition between VET and higher education
• Improving the mobility of students between sectors, including building better data and digital capabilities to provide insight into movement between VET and higher education.
• Improving regulator approaches for dual-sector providers, including scoping and piloting self-accreditation for selected TAFEs
• Changes to AQF level frameworks.