The Federal Government has announced a new agreement with multiple states that aims to unlock billions of dollars to build Australia’s skills and prosperity.
The National Skills Agreement (NSA) was developed under principles agreed by National Cabinet and will take effect from January 2024.
“This landmark agreement will kickstart real change, with the NSA heralding a new era for training and education, and provides an exciting opportunity for Victorians to equip themselves with the skills to work in high quality employment for their future,” Federal Minister for Skills and Training Brendan O’Connor said.
“By working in partnership with states and territories through a new national stewardship approach, we are building a system that is greater than the sum of its parts. A high performing and world class VET sector is crucial for achieving a fairer society and a stronger economy.”
It intends to embed national cooperation and strategic investment in the TAFE and VET sectors in Victoria, New South Wales, Western Australia, Queensland and South Australia.
Through the agreement, a new national stewardship model will coordinate strategic investment in skills across the economy and support delivery of skills needed in national priority areas, and it will provide flexibility to meet local industry skills needs.
The Federal Government is expected to invest $12.6 billion in the VET sector, with an extra $2.4 billion in flexible funding to support state and territory skills sectors with capacity to deliver skills for critical and emerging industries such as the resources sector.
A further $1.3 billion of Commonwealth funding has also been allocated to implement agreed reforms to improve the TAFE and VET sectors, such as allocating $325 million to establish nationally networked TAFE centres of excellence and strengthen collaboration between TAFEs, universities and industry.
If states and territories access all the Commonwealth funding available under the NSA, the combined investment by governments would exceed $30 billion.
The Federal Government is expected to invest $3.15 billion into Victoria’s VET sector, $3.81 billion into NSW, $1.34 billion in WA, $2.54 billion in Queensland, and about $2.2 billion in SA.
The agreement’s prioritises clean energy and net zero transformation of the economy – a large focus of the mining industry at the moment.