Based on recent reports and ongoing discussions, the top 5 topics relating to the Australian VET system are:
- Quality and consistency of training
- Engagement and responsiveness to industry
- Funding models and financial sustainability
- VET workforce
- Tertiary harmonisation and pathways.
This article is a bit long. I hope you can make it to the end.
1. Quality and consistency of training
Quality and consistency of training remains a critical issue. While the VET sector is valued, there are ongoing concerns about the consistency of training quality across different Registered Training Organisations (RTOs) and TAFE courses. This includes ensuring that graduates have the relevant skills, that training is of a high standard, and that there’s enough focus on practical skills. The Australian Skills Quality Authority (ASQA) plays a key role in regulating and auditing RTOs to ensure compliance with the VET Quality Framework, but quality issues persist.
ASQA has been shifting its regulatory focus, moving away from extensive external audits towards a model of self-regulation for RTOs. This new approach emphasises an RTO’s internal ability to monitor, evaluate, continuously improve, and manage risks related to training quality. However, this shift presents a potential for failure due to an inherent conflict of interest. Providers might prioritise financial gain over genuine quality, potentially leading to a decline in overall standards within the sector.
The move towards self-regulation and a perceived lack of independent scrutiny may contribute to an environment where fraudulent activities can occur more easily. Relying on internal monitoring systems carries significant risks, as these can be manipulated or under-resourced. Proactive, regular external audits would likely be more effective in identifying potential issues early on, rather than waiting for problems to be reported through ASQA’s “VET tip-off line” after the fact.
The current spate of de-registered RTOs and cancelled qualifications may be linked to a lack of onsite audits being conducted by the regulator.
2. Engagement and responsiveness to industry
A crucial aspect of VET is its ability to meet the rapidly changing needs of employers and industries. There’s a strong focus on strengthening industry engagement to ensure that VET qualifications and training programs are relevant and aligned with current and emerging workforce demands. The establishment of Jobs and Skills Councils (JSCs) is a recent reform aimed at giving industry a stronger voice in identifying skills needs, developing training products, and collaborating with providers.
Since the establishment of the current Australian VET system in 1992, industry and employers have been positioned to give advice on workforce skill needs, VET qualifications, and units of competency. These industry-led groups have been the National Industry Training Advisory Boards, that were replaced by Industry Skills Councils (ISCs), that were replaced by Industry Reference Committees (IRCs), that have now been replaced by Jobs and Skills Councils (JSCs).
Each change has been designed to give industry a stronger voice and to streamline the training product development process. I agree that Australia’s VET system should be responsive to industry and employers. And I agree that Australia’s VET system should be national as well as industry led. However, many concerns expressed by industry and employers would be resolved if RTOs were more responsive to ‘local’ needs. There is significant flexibility for training products to be customisation and contextualisation.
Lack of responsiveness and flexibility can often by fixed at the local level by RTOs, rather than changing the training package development process.
3. Funding models and financial sustainability
The financial foundations of the VET sector are under pressure. Traditional funding models consist of a mix of government allocations and student fees. RTOs, including TAFEs, raise concerns that there isn’t adequate and sustainable funding to develop quality training and provide sufficient student support services.
In recent years, the Australian Government and the governments of states and territories have been prioritising funding to TAFEs. TAFEs have been, and continue to, spend a lot of money on fancy buildings and expensive technological infrastructure. It is questionable if learning is improved by TAFEs having these new buildings and advanced technology.
I think that there will never be enough funding. And I think that the dilemma of wanting high-quality but low-cost training will continue to be an unresolvable problem for the VET system. However, I will be happy to be proven wrong.
4. VET workforce
A major challenge is attracting, retaining, and developing a skilled VET workforce. National strategies are being developed to grow the workforce and improve retention, including the ‘Credential Policy’. This policy came into effect alongside the new Standards for Registered Training Organisations on the 1st of July 2025. I believe that this policy will have no or limited impact on the VET workforce, nor on improving training quality. Again, I will be happy to be proven wrong.
5. Tertiary harmonisation and pathways
Over the last few years, some VET influencers and some VET lobby groups have been saying that there needs to be a better connection between the VET system with Higher Education. Their goal is to break down the barriers between VET and university pathways. This is not a new idea.
Background
The Australian Qualifications Framework (AQF) was first introduced in 1995. It included ‘articulation arrangements’. These arrangements were a set of principle to assist the establishment of connections between different qualifications. An entire section of this first AQF was devoted to ‘articulation arrangements’. [1]
The Australian Qualifications Framework (AQF) was revised and republished in 2011. A second edition of the revised AQF was published in 2013. The revised AQF clearly states an objective to support the development and maintenance of pathways which provide access to qualifications and assist people to move easily and readily between different education and training sectors. [2] [3]
The AQF aims to assist people to plan their career progression. In this way, it encourages lifelong learning. The AQF 2013 defines ‘articulation arrangements’ as arrangements that enable students to progress from a completed qualification to another with admission and/or credit in a defined qualification pathway. [3]
In 2012, the Standards for Training Packages were published. In this document, the term ‘articulation arrangements’ was replaced by ‘credit arrangements’. These Standards for Training Packages have been republished several times, and in these documents ‘credit arrangements’ has been defined as the arrangements existing between Training Package qualifications and Higher Education qualifications. [4]
What’s new?
Thirty years has passed since the AQF was first published, and thirteen years has passed since the Standards for Training Packages were published (replaced by the Training Package Organising Framework on the 1st of July, 2025). Not one ‘credit arrangement’ was established. Not one nationally agreed articulation arrangement has been established.
Routinely, the universities have been unwilling to recognised VET qualifications. The disconnect between the VET system and Higher Education has been impenetrable. So, some VET influencers and some VET lobby groups have taken a new approach. This approach is called tertiary education harmonisation.
Tertiary education harmonisation means VET and Higher Education work more closely together. The aim is for a more seamless and aligned tertiary education system. This does not imply that Australian will merge Higher Education and VET into one system. ‘Alignment’ is not the same as ‘merge’.
VET and Higher Education would remain separate sectors with important differences in their missions and their approaches to learning. The Australian Government is currently investing $27.7 million over 4 years to 2027-28, including $15.9 million specifically for VET to improve ‘tertiary education’ collaboration. The only tangible deliverable at the moment seems to be a ‘roadmap’ to be developed. [5] [6]
Is a ‘roadmap’ worth $27.7 million investment?
How will VET spend $15.9 million to improve ‘tertiary education’ collaboration? And who will get this money?
Will ‘alignment arrangements’ achieve the same outcome as ‘articulation arrangements’ and ‘credit arrangements’? In other words, achieve nothing.
In conclusion
After more than 30 years, the VET system continues to be plagued with problems. The entire VET system is currently be changed.
- ASQA’s new regulatory approach promoting self-regulation and the new Standards for RTOs (effective from the 1st of July 2025) aim to improve the quality and consistency of training.
- Establishment of Jobs and Skills Councils and the new Training Package Organising Framework (effective from the 1st of July 2025) aim to improve engagement and responsiveness to industry’s skill needs.
- Funding models prioritising TAFEs, strategies to positively impact the VET workforce, and tertiary education harmonisation aim to improve the Australian VET system.
These changes were started by the Scott Morrison’s government and have continued to be implemented by the Anthony Albanese’s government. But will all these changes make the Australian VET system better?
What do you think?
On Target Work Skills 