The Victorian Government’s decision on 2026 Skills First funding has delivered a major setback for the State’s skills and training sector. A total of 58 high-performing Registered Training Organisations (RTOs) have been advised they will not receive a Skills First contract, while many of those that were successful will face significantly reduced allocations. The combined impact is expected to lead to job losses, reduced course availability for Victorian students, and potential business closures across the sector.

The Independent Tertiary Education Council Australia (ITECA) has strongly criticised the decision, particularly its timing just days before Christmas, noting the uncertainty it creates for workers, trainers and students. ITECA highlights that independent RTOs support more than 88 per cent of student enrolments in Victoria and are the preferred training providers for over 61 per cent of employers. NCVER data also shows higher student satisfaction outcomes for independent providers compared with public TAFE across every single survey measure.

ITECA is warning that the funding decision will limit student choice, reduce the availability of skilled workers for critical industries such as care and community services, and damage confidence in Victoria’s skills system. ITECA is calling on the Victorian Government to urgently review the decision and engage with the sector to mitigate long-term impacts.

Read the full media release:
Victorian Government Delivers Job Cuts for the New Year – ITECA
[Download Here]

Further Information — This advice is one of the many ways that ITECA empowers your team with the information to make sound business decisions.  If you'd like to discuss this matter further, the ITECA team would value the opportunity to talk to you.  Simply send an email to [email protected] or telephone 1300 421 017.  Stay up to date via Twitter, Facebook and LinkedIn. Disclaimer & Copyright — This information may be reproduced in limited circumstances under a Creative Commons: Attribution-NonCommercial-NoDerivatives 4.0 License.  Information published on this webpage is intended for general information only and no warranty is providers as to accuracy or completeness thus any reliance you place on this material is therefore strictly at your own risk.