- Introduction
- In 2022, there were 4.5 million students enrolled in nationally recognised vocational education and training (VET). This represents around 25 per cent of the population aged between 15 and 64 years, and a five per cent increase in student numbers compared to the previous year.
- The VET sector is central to ensuring access to secure work, enabling employers to obtain the skills they need to run and expand their businesses, and to building Australia’s skilled workforce. For students in the sector, VET provides a viable pathway to employment, a fulfilling career, and economic security.
- Despite the growth in numbers of VET students over time and increasing recognition that VET is a key contributor to skills and workforce development, research suggests that negative perceptions of VET sector persist. The sector is often considered less valuable than higher education and is not a pathway of choice for secondary school students considering their post-school options. These perceptions are driven by a poor understanding of VET and the opportunities it offers, the attitudes and beliefs of key influencers such as parents and friends, and a society which values and prioritises higher education.
- As Australia faces a significant skills and labour shortage across many sectors of the economy, it is imperative that more students pursue VET to fill these emerging gaps.
Conduct of the inquiry
1.5The Committee commenced its inquiry following a referral from the Minister for Skills and Training, the Hon Brendan O’Connor MP, on 30 November 2023.
1.6Terms of Reference for the inquiry are set out in the front pages of this report.
1.7The inquiry was advertised on the Committee’s website on 1December2022. Submissions were invited from a range of stakeholders, including potential students, employers, parents, career advisors, educators, industry bodies, and unions.
1.8The Committee received 100 submissions, which are listed in Appendix A and are available on the Committee’s website.
1.9The Committee held fifteen public hearings in Canberra, Victoria, Queensland, and New South Wales (NSW). In addition, the Committee conducted four site visits:
- Cranbourne Secondary College, Cranbourne, Victoria.
- St Columban’s College, Caboolture, Queensland.
- the Chisolm Institute, Frankston Campus, Victoria.
- the Institute of Applied Technology (IAT), Meadowbank, NSW.
- Witnesses who appeared at the Committee’s hearings are listed in Appendix B. Hansard transcripts and additional information provided to the Committee are available on the Committee’s website.
Reviews and policy context
1.11Several reviews and inquiries relating to the VET sector are either ongoing or have been recently completed. These include:
- the new National Skills Agreement (NSA).
- the Australian Universities Accord (AUA).
- the Employment White Paper.
- the Review of the Australian Qualifications Framework.
- the Independent review of Australia’s VET system.
- inquiries undertaken by the Queensland, NSW, and Australian Capital Territory Parliaments.
- Outcomes of these reviews—particularly the NSA, Employment White Paper, and AUA—are directly relevant to findings and recommendations of this report. Further information on review processes and the broader policy context for this inquiry is included in Appendix C, with reviews also referred to throughout the report.
- Stakeholders emphasised that reviews of the sector should not be considered in isolation. There must be holistic consideration of all contributions and input, as well as efforts to ensure that implementing the recommendations of one review do not adversely impact on implementing the recommendations of another.
- Stakeholders also noted that there have been many reforms to the VET system, and raised concern that students, providers, employers, and others often have little time to adjust to reforms and implement meaningful, lasting change.
National Skills Agreement
1.15National Cabinet endorsed a new NSA on 16 October 2023. The NSA provides states and territories with access to Commonwealth funds of up to $3 billion over five years, taking total Commonwealth investment in state and territory training systems to $12 billion over five years. An additional $1.3 billion in Commonwealth funding has also been committed for priority reforms, including measures to raise the profile of the technical and further education (TAFE) sector, grow and enhance the quality of the VET workforce; and raise completion rates for target cohorts including women and First Nations peoples.
1.16Some of the Committee’s findings and recommendations will reflect or be pre-empted by measures in the NSA. Where possible, the Committee has endeavoured not to recommend measures that duplicate initiatives being pursued through the NSA. Rather, it has made recommendations that complement or add to those initiatives.
Australian Universities Accord
1.17On 16 November 2022, the Minister for Education announced the appointment of an Expert Panel to conduct a comprehensive review of Australia’s higher education system: the Australian Universities Accord (AUA). The AUA Final Report, which contains 47 recommendations, was presented to Government in December 2023.
1.18The AUA Final Report found that meeting current and emerging social, economic, and environmental challenges and responding to the growing demand for skills will require significant and system-level changes to tertiary education—including to both the university and VET sectors.
1.19The Committee agrees with the findings and recommendations of the Expert Panel, noting there is substantial overlap with this inquiry. In particular, the Committee supports the recommendations relating to an integrated tertiary education sector; seamless pathways between VET and university; enabling access to tertiary education in regional areas; and facilitating the acquisition of modular, stackable, and transferrable skills and qualifications. The Committee draws particular attention to the following key recommendations:
- Creating an Australian Tertiary Education Commission to address the appropriate diversity of tertiary education providers—including enabling more cross-delivery of VET by higher education providers and vice versa (Recommendations 30 and 37).
- Better alignment between higher education and VET and allowing TAFEs to be more responsive to student and industry needs (Recommendation 38).
- Strengthening regional tertiary education, including via the creation of a more integrated tertiary education system in regional communities and expanding the Regional University Study Hubs program to capture VET (Recommendation 39).
- The Committee also strongly supports measures to enable access to education for all Australians and to facilitate and encourage lifelong learning. These measures will be critical to ensuring Australia is able to respond effectively to an increasingly dynamic global economy and labour market.
- The recommendations of the AUA Expert Panel will go a long way to addressing those perceptions of VET that discourage people from engaging with the sector.
Structure of the report
1.22This report is divided into six chapters, including this introductory chapter.
- Chapter 2 provides an overview of the VET sector, including governance structure and how courses are delivered. It also considers perceptions of the sector among members of the public, employers, and target cohorts.
- Chapter 3 explores measures to increase awareness and understanding of VET and to promote VET as a sector of choice to prospective students and other key stakeholders.
- Chapter 4 examines perceptions of VET in secondary schools and ways to address these perceptions. It also discusses measures to improve VET delivered to secondary school students (VETDSSS).
- Chapter 5 examines the nature and quality of training in the VET sector. This includes national training packages, assessment processes and the role of micro-credentials. It also explores measures to attract, retain and develop the VET teaching workforce, and measures to improve the apprenticeship and traineeship pathways and enhance completion rates.
- Chapter 6 examines the structure and governance of the sector, including the mix of providers, regulation, the student experience, access to VET, and funding. It also considers measures to better align the VET and higher education sectors.
Notes on terminology and references
1.23All references to Committee Hansard are to official transcripts unless otherwise indicated. Page numbers may vary between proof and official transcripts.
1.24The Committee acknowledges that there are a variety of terms used to reflect the diversity of Aboriginal and Torres Strait Islander cultures and identities. In this report, the term ‘First Nations peoples’ is used.
Acknowledgements
1.25The Committee thanks the organisations and individuals who contributed to the inquiry via submissions and oral testimony, including current and former VET and secondary school students who shared experiences and suggested improvements.