$30bn National Skills Agreement delivers workplace boost

National Cabinet has agreed to unlock billions of dollars to build Australian through a landmark five-year National Skills Agreement (NSA).

The agreement between the Commonwealth and the states will take effect from January next year, embedding national cooperation and strategic investment in our vocational education and training sector, according to the government.

The federal government is to invest $12.6 billion in the VET sector, support quality training and implement reforms to address critical skills needs.

If States and Territories access all the Commonwealth funding available under the NSA, the combined investment by governments would exceed $30 billion.

A new National Stewardship model will coordinate strategic investment in skills across the economy, and support delivery of skills needed in national priority areas, as well as providing States and Territories with flexibility to meet local industry skills needs.

The agreement places TAFE at the heart of the VET sector, with TAFEs to be supported by baseline funding commitments.

Major reforms will include the establishment of nationally networked TAFE Centres of Excellence involving partnerships between TAFEs, universities, Jobs and Skills Councils and industry.

The Prime Minister Anthony Albanese said: “We need to train Australians for the jobs of today as well as the jobs of tomorrow.

“This important National Skills Agreement, alongside our very successful Fee-Free TAFE places, will mean more boilermakers, more chefs, more aged care workers, more child care workers, and more Australians with the skills that they need, but also the skills that our economy needs.”

The $12.6 billion investment by the Commonwealth includes an extra $2.4 billion in flexible funding for critical and emerging industries. Priorities include:

• Clean energy and Net Zero transformation of the economy
• Australia’s sovereign capability, including advanced manufacturing skills, national security, food security and construction
• And ensuring Australia’s digital and technology capability.

In a significant shift away from the past decade, a new National Stewardship approach on skills will provide a framework for cooperation across state borders and across national and state and territory priorities.

There is up to an additional $1.3 billion of Commonwealth funding to implement agreed reforms including:

• $325 million to establish nationally networked TAFE Centres of Excellence and strengthen collaboration between TAFEs, universities and industry
• $100 million to support, grow and retain a quality VET workforce
• $155 million to establish a National TAFE leadership Network to promote cutting edge curriculum
• $142 million to improve foundation skills training capacity, quality and accessibility
• And $116 million to improve VET evidence and data.

The Minister for Skills and Training, Brendan O’Connor: “This landmark agreement will kickstart real change.

“A high performing and world-class VET sector is crucial for achieving a fairer society and a stronger economy.”