Advocacy – NASWD Productivity Commission Review


In November 2019, the Treasurer asked the Productivity Commission to review the National Agreement for Skills and Workforce Development (NASWD). This is the agreement that sets the framework in which the Australian Government provides funding to state / territory governments to fund vocational education and training.

The Productivity Commission recognised the Independent Tertiary Education Council Australia (ITECA), recognised by the Australian Government as the peak body representing independent Registered Training Organisations (RTOs). In this context, ITECA has been involved extensively with the review process.


Productivity Commission ― 
NASWD Funding Agreement Review Interim Findings


The review has concluded that there is a manifest capacity to better allocate the $6.1 billion in governments’ spending on VET to improve outcomes. It has determined that there is the need to change funding to make the VET system a more efficient, competitive market, driven by the informed choices of students and employers, with the flexibility to deliver a broad suite of training options. Joyce Review


Productivity Commission ―  
NASWD Funding Agreement Interim Recommendations


That funding of vocational education and training should be provided on the basis of student choice, allowing them to study a provider of their choice, whether a quality independent provider or a public TAFE college. It has also suggested an option that includes expanding access to VET Student Loans by relaxing loan caps and course and qualification restrictions, underpinned by strong risk management.

Following extensive consultation with its members, ITECA has advised the Productivity Commission that independent RTOs strongly support the findings and the recommendations in the review.


Downloads ― 
NASWD Funding Agreement Report


Productivity Commission - 2020 NASWD Interim Report [PDF] 

The ITECA policy team in Canberra has been highly engaged with the Productivity Commission as it undertakes its review into the National Agreement for Skills and Workforce Development, with a number of meetings having taken place between the Productivity Commission and senior ITECA staff..

The advice that ITECA provides the Australian Government on this matter comes from members serving on the ITECA Vocational Education and Training References Committee .

Further Information ―

The ITECA membership team would value the opportunity to discuss the Joyce review with you, so if you have any questions send an email to [email protected] or telephone 1300 421 017.  Be sure to follow ITECA on Twitter, Facebook and LinkedIn.  

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