On 24th May, Federal, State, and Territory Skills Ministers met in Sydney to discuss Australia’s National Skills Plan and the VET Workforce Blueprint. The communique published from that meeting highlighted critical developments that require our attention.
The National Skills Plan
When Skills Ministers announced Australia’s first National Skills Plan, my initial reaction was one of surprise. Had we really been developing Training Packages and working through Industry Skills Councils and Skills Service Organisations without a unified plan? Reflecting on past articles, it became clear that the lack of cohesive planning has long been an issue.
Now, the ministers are discussing the development of this plan. Although it’s still in progress, the National Skills Plan aims to guide investment in skills, enhancing economic and social benefits through the VET system. Notably, TAFE is positioned at the heart of this plan. The government has committed 70% of all Australian Government funding to TAFE ($30 billion over five years), alongside an additional $650 million to establish TAFE Centres of Excellence and other expansion projects. Details about the eight national priorities remain undisclosed.
Implications for Australians
Australians will continue to benefit from free vocational training and education through TAFE. With at least seven out of ten government-funded students expected to study at TAFE, the financial appeal of free education is undeniable. This creates a competitive advantage for TAFE over independent providers, particularly for industry entry-level qualifications. The sustainability of this advantage hinges on future government funding commitments.
This market polarisation will likely influence industry connections. Employers and stakeholders may gravitate towards TAFE, the dominant player in the government-funded VET market.
Impact on Independent RTOs
The emphasis on TAFE as the VET sector’s core will challenge independent RTOs, especially in areas where free training is available. While partnerships with businesses investing in workforce development remain viable, independent RTOs might find better opportunities in specialised skills training and continuous education for individuals who can self-fund.
Independent RTO CEOs and managers must reassess market conditions and strategise accordingly. They need to identify sustainable niche markets where their performance can be recognised and valued.
Regulatory Reforms
The new Standards for RTOs are expected to be released in August 2024, coming into effect on 1st July 2025. The new regulatory framework will encompass the Standards, a Credential Policy, and compliance requirements, though information on the latter two is sparse. Key governance changes include:
- Demonstrating effective risk management and compliance
- Promoting a positive organisational culture
- Implementing effective workforce planning
- Clearly defining job roles and responsibilities
- Ensuring continuous financial viability
Training and assessment practices will also undergo significant updates:
- Enhancing training and assessment strategies with detailed learner engagement and delivery strategies
- Expanding industry engagement to include community representatives
- Pre-testing assessments for fitness for purpose
- Ensuring effective assessment validations
- Improving information and advice provided to learners prior to enrolment
- Identifying learners’ needs and expanding support systems
- Promoting and supporting learner wellbeing in the training environment
The transition period is brief, giving RTOs less than 12 months to comply.
TAFEs, considered the trusted public provider, might see different regulatory treatment. The government is exploring delegating ASQA’s course accreditation function to selected TAFEs.
Conclusions
- Independent RTOs must reassess their business models to ensure sustainability, independent of government funding.
- Market polarisation between public and private providers may hinder sector integration and collaboration.
- Upcoming changes to RTO Standards and regulations require swift operational and governance transitions.
- RTO leaders need to provide relevant training to staff on compliance, instructional design, learner engagement, assessment practices, training evaluation, and educational technology.
- The VET sector should create opportunities for VET practitioners to develop their skills and maintain industry relevance.
- Small and medium RTOs might face significant challenges under the new regulatory requirements, potentially reducing their scope or pushing them towards specialised non-NRT sectors.
By staying informed and proactive, independent RTOs can navigate these changes and continue to play a vital role in Australia’s VET landscape.
