VET funding in Australia: background, trends and future directions

The vocational education and training (VET) system in Australia plays a central role in the development of skills for the Australian workforce and through that role makes a critical contribution to workforce participation, productivity levels, individuals' life chances, and economic and social development. The level of public and private investment in VET is therefore an important public policy issue. The Mitchell Institute has pointed to declining levels of public investment in VET. This paper has been specifically prepared to help inform consideration and debate about the future of VET...  [+] Show more

The vocational education and training (VET) system in Australia plays a central role in the development of skills for the Australian workforce and through that role makes a critical contribution to workforce participation, productivity levels, individuals' life chances, and economic and social development. The level of public and private investment in VET is therefore an important public policy issue. The Mitchell Institute has pointed to declining levels of public investment in VET. This paper has been specifically prepared to help inform consideration and debate about the future of VET funding in Australia.

VET is currently funded under a shared funding model between Commonwealth and the states, while higher education is funded by the Commonwealth. The paper summarises the evolution of the VET shared funding model and assesses its effectiveness over time in terms of funding, participation and enrolments and the changing shares of Commonwealth and state funding particularly through VET FEE-HELP. It concludes by outlining, in broad terms, options for future funding responsibility for VET.

Excerpts from publication.