Industry-Innovation-and-Competitiveness-Agenda

Vocational education and training that prepares Australians for work
The VET system is generally well regarded. Government support for VET training is extensive.
It comprises $6.2 billion per year in subsidy systems managed by the States, and a further
$1.4 billion per year in Commonwealth funding to support participation in apprenticeships and
for other programmes targeting industry, youth and foundation skills. The system has several
strengths including nationally recognised qualifications, industry-directed content, and training
delivery through a mixture of public and private providers.
However, concerns have been raised about the VET system’s ability to deliver the skills
demanded by the Australian economy. A survey of employers by the National Centre for
Vocational Education Research (2013b) indicated that satisfaction in the ability of the system
to deliver job ready employees declined 6 percentage points, to 78 per cent, between 2011
and 2013. The Productivity Commission (2014b) has also indicated that improving the
quality, flexibility and accessibility of training is needed to support the increasing geographic
and occupational labour mobility required in the modern labour market. With only around
50 per cent of apprentices completing their training, and particularly poor completion and
employment outcomes for lower level qualifications, the system also needs to pay more attention
to the needs of trainees and employers alike (NCVER, 2013a).
The Government is working with State governments and industry to improve the VET sector
to ensure that subsidies provided through training providers are flexible, address the needs
of employers and lift completion rates. The COAG Industry and Skills Council has agreed on
objectives for reform of the VET system, including effective governance, efficient government
funding and a flexible system that meets industry needs. The Government has established
a taskforce to work with key stakeholders, including State governments, registered training
organisations, industry groups and employers, to develop a reform plan that creates a more
agile and industry-focused VET system by:
• enhancing the capacity of the system to deliver high-quality outcomes for students;
• ensuring a stronger role for industry at all levels of the system;
• increasing the responsiveness of regulation; and
• increasing flexibility for training providers to meet employer needs.
Industry Innovation and Competitiveness Agenda
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As an initial step, the 2014-15 Budget provided
$476 million to establish the Industry Skills Fund to support
the training needs of small to medium enterprises not readily
met by the national training system. The Fund will commence
on 1 January 2015 and will deliver 200,000 targeted training
places and training support services over four years. It will
prioritise assistance to small and medium enterprises (SMEs)
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The Reform Agenda: Ambition 2
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