VET Funding Reform Call

Date —

24 May 2020

Industry Sector/s —
Vocational Education & Training

Summary —

A radical overhaul of vocational education and training funding has been called for, that would see state / territory government funding decisions based on a provider’s past performance.  This is a strong argument that will deliver better outcomes for students and the economy. 

Key Issues —

A review of state / territory government funding of vocational education and training has highlighted that there is a significant misalignment between funding and student outcomes.  The Independent Tertiary Education Council Australia (ITECA), thanks to the awesome support of its members, has called on State Premiers and Territory Chief Ministers to revise funding arrangements.

A new funding model for vocational education and training, as proposed by ITECA, would see state / territory governments allocate funding on a competitive basis.  Key metrics in decision making would include student completion rates, post-study employment, as well as employment and student satisfaction. 

Quality independent Registered Training Organisations (RTOs) would be able to compete on an equal basis alongside public TAFE colleges.  Funding decisions would be made on outcomes measured from a student’s perspective along with appropriate checks and balances to mitigate risk.  Importantly, the risk assessment would also encompass public TAFE Colleges, thus providing taxpayers and students with protection from the policy maleficence in jurisdictions such as Victoria where hundreds of millions of dollars are being wasted on extraordinarily poor outcomes from some public TAFE colleges.

“The Covid-19 crisis has placed into specific relief the simple fact that its independent RTOs will do the heavy-lifting in providing jobseekers with new skills.  ITECA, thanks to the backing of its members, is strongly lobbying for a change to state / territory government funding models to ensure that students with independent RTOs get the funding needed to support them into the workforce,” said Mr Troy Williams, ITECA Chief Executive.

The current funding models don’t adequately support 80% of the 4.1 million students in vocational education and training that study with an independent RTO.  Indeed, the fact that independent providers support more indigenous students, more students from remote and regional Australia and more students from disadvantaged socio-economic backgrounds highlights the need for funding reform.


Member Engagement —

ITECA’s ability to play a lead role in matters associated with this issue rests on the advice and guidance of individuals serving on the ITECA Vocational Education Reference Committee.

Further Information —

For more information on this issue please send an email to [email protected] or telephone 1300 421 017.  Stay up to date via Twitter @ITECAust or via Facebook at

Disclaimer & Copyright:

The material published on this website page is intended for general information only and is not legal advice or other professional advice.  It may not be reproduced without ITECA’s prior written consent.

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