Changes in funding in Australian vocational education and their effects

This paper is one of a series of policy discussion papers presented by the LH Martin Institute. The aim is to contribute to the debate the Institute sees as necessary to reform and invigorate the tertiary education sector, in particular vocational education and TAFE. The series covers a range of topical issues, from policy settings, governance, funding, competency based training, social inequality and training markets.

This paper considers changes in funding for vocational education and training (VET) from the early 1990s when the move towards a market in vocational education began. Against this earlier background, funding from the early 2000s is reviewed. The main types of funds are discussed in relation to numbers in training, participation by equity groups, efficiency and effectiveness. The analyses in the paper are drawn on to suggest matters for more detailed consideration: a comprehensive and regular evaluation of the whole range of funds for vocational education; a need for a state and Commonwealth agreement for national oversight of funding of vocational and higher education as a means of rationalising subsidies across tertiary education; a need for improved confidence in quality, including an extension of external assessment; and development of more autonomous public vocational providers well supported at state and national level.

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