Summary —

The Business Council of Australia (BCA) has expressed significant concerns regarding the Free TAFE Bill 2024 (Cth) that the Australian Government has introduced into parliament. The Senate Standing Legislation Committee on Education & Employment is undertaking an inquiry into the Bill and the BCA’s submission has highlighted several shortcomings of the proposed legislation.

Key Issues —

The Independent Tertiary Education Council Australia (ITECA) will appear before a Senate Committee to give evidence that the Free TAFE Bill 2024 (Cth) should be set aside, arguing it risks disadvantaging students and creating inefficiencies in Australia’s skills training system. The Bill, promoted as a step toward improving access to vocational education, does more harm than good by duplicating mechanisms already established under the National Skills Agreement (NSA), which has been in effect for just over a year.

The ITECA Chief Executive, Troy Williams, will appear before the committee on 31 January 2025, arguing that Australia’s world-class skills system is defined by student choice. Currently, independent Registered Training Organisations (RTOs) support 91% of student enrolments and deliver superior outcomes, particularly for those in regional and remote areas or those pursuing specialised qualifications. The Free TAFE Bill 2024 (Cth) undermines this diversity by disproportionately favouring public TAFEs, ignoring the distinct advantages that independent RTOs provide.

TAFEs face ongoing challenges, including lower completion rates, student satisfaction, and employer satisfaction compared to independent RTOs. For students seeking industry-specific training, whether in engineering, IT, or regionally relevant disciplines, independent providers offer critical opportunities that TAFEs often cannot match. Yet, the Bill restricts funding and access primarily to TAFE programs, effectively funnelling students into a system that doesn’t meet everyone’s needs.

The Bill’s exclusionary framework is inequitable and at odds with Australia’s diverse student population and labour market needs. Students in rural and remote areas or those seeking niche training programs risk being left without viable, government-funded options. Instead of empowering students to choose their ideal provider, the Bill imposes a top-down, government-directed model.

ITECA highlights that the existing $12.6 billion National Skills Agreement already provides states and territories with the flexibility to allocate funding where it is most needed. This framework allows for substantial support of TAFEs while simultaneously enabling investment in high-performing independent RTOs. Adding another layer of duplicative policy risks creating administrative confusion, inefficiencies, and funding misallocations.

Another concern is the lack of financial transparency. Although the Bill claims no fiscal impact, funding “at least 100,000 free TAFE places” annually will require significant taxpayer investment. If funding is diverted from existing programs, students studying with independent RTOs may lose critical support, further limiting their options.

ITECA recommends that the Australian Government focus on improving the implementation of the National Skills Agreement, rather than advancing unnecessary legislation.

By recognising the complementary roles of both public TAFEs and independent RTOs, policymakers can ensure that all students have access to high-quality training aligned with their unique goals and employer needs ,without restricting their choices or compromising outcomes.

Getting Involved —

ITECA's award winning policy advocacy on this matter is determined by members participating in the ITECA Skills Training National Policy Committee.  ITECA Membership - It's a great time to get involved.

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.