Apprenticeships and traineeships

More apprenticeships for workforce priorities

$11.4 million is provided to support apprentices, trainees and their employers to meet Victoria's workforce priorities. This includes funding for Apprenticeships Victoria to provide apprenticeship system stewardship and expand opportunities for apprentices, trainees and employers in areas with skills shortages through a new Priority Apprenticeship Pathway model. Funding will continue to support apprentices and trainees most at risk of not completing their training with dedicated support through the Apprenticeship Support Officer program. This initiative is funded from the National Skills Agreement (NSA) Commonwealth Revenue (Budget paper no. 3: Service delivery, pp. 59 and 64).

Trade Apprenticeship Registration Discount scheme

The cost of the motor vehicle registration discount for eligible trade apprentices is estimated to be $10 million in 2024-25. The estimate reflects the trade apprentice's registration discount increasing from 50 per cent to 100 per cent in the 2023-24 budget (Budget paper no. 5: Statement of finances, pp. 187-188 and 192).

Employment

Developing a thriving digital economy

$4.4 million is allocated in 2024-25 to continue the Digital Jobs Program. The program aims to provide Victorians the opportunity to change their careers and support the tech sector in filling critical skill shortages (Budget paper no. 3: Service delivery, pp. 58 and 60). 

Regional economic transition 

$6.3 million is provided in 2024-25 to support worker transition and youth employment pathways in the Latrobe Valley, including for Latrobe Valley Authority operations. The initiative is scheduled to receive $300 000 in 2025-26 and $200 000 in 2026-27 (Budget paper no. 3: Service delivery, pp. 58 and 61). 

Support to veterans in Victoria 

The 'Support to veterans in Victoria' output of the Department of Families, Fairness and Housing provides coordination of veteran-related issues at a state level, especially in relation to commemoration, education programs, grant programs, employment initiatives, research and veteran welfare. This output supports the Shrine of Remembrance and the Victorian Veterans Council. The total cost for the output is estimated to be $14.4 million in 2024-25 (Budget paper no. 3: Service delivery, pp. 116 and 120).

Industry

Workforce capacity challenges

Budget paper no. 4: State capital program (p. 3) states Victoria is experiencing skills shortages due to strong employment outcomes, particularly in the construction industry with occupations like construction managers, electricians, plumbers, painting trades workers, carpenters and joiners in particularly high demand according to the Victorian Skills Plan. The initiatives that have been introduced to address the skills shortage include the rollout of Free TAFE, the Skills First Skills Sets, and the Priority Apprenticeship Pathways program.

Responding to workforce shortages and market constraints

The 2024-25 budget provides $117 million to continue supporting the TAFE Network, $32 million to rapidly retrain or upskill workers into high-priority industries through accredited skill sets listed on the Training Needs List and improve industry responsiveness, and $11 million to continue supports for apprentices, trainees and their employers. These new initiatives build on existing programs to deliver the workforce Victoria needs, such as Free TAFE, clean energy worker training centres for hydrogen and wind, an SEC Centre of Training Excellence to coordinate and accredit courses in clean energy, delivery of the Australian Major Projects Leadership Academy (AMPLA), the Major Project Skills Guarantee, the Building Equality Policy and Women in Construction Strategy, initiatives to address supply chain disruptions and increase the efficiency of resource use, including the development of a Supply Chain Dashboard, and promoting Victoria's Digital Asset Policy. The aims of the initiatives include assisting Victoria to deliver its pipeline of infrastructure projects and grow the construction and renewable energy workforce (Budget paper no. 4: State capital program, p. 23). See also the Training providers and programs section below for more information. 

New Victorian Infrastructure Delivery Authority

The new Victorian Infrastructure Delivery Authority (VIDA) was established on 2 April 2024 to deliver the State's transport and health infrastructure programs. The aim of the new structure is to allow the Department of Health to focus on delivering critical health services while combining the skills and experience of both the Victorian Health Building Authority and the Major Transport Infrastructure Authority as project delivery specialists. The VIDA will manage the delivery of more than 200 projects including the Metro Tunnel, the North East Link, the West Gate Tunnel, removing 110 level crossings, building new hospitals and upgrades to ambulance stations and specialist health services (Budget paper no. 4: State capital program, p. 24).

National Agreements

In 2024-25, the Australian Government will provide estimated funding of $579 million to support Victoria's skills and workforce development services through the National Skills Agreement and Free-Free TAFE National Partnership.

National Skills Agreement

Funding from the Commonwealth Government under the National Skills Agreement is estimated at $570 million in 2024-25 (Budget paper no. 5: Statement of finances, p. 179).

Fee-Free TAFE 

Funding for Fee-Free TAFE places, TAFE Technology Fund and VET Data Infrastructure is estimated at $9 million in 2024-25 (Budget paper no. 5: Statement of finances, p. 181).

Regulation

Victorian Registration and Qualifications Authority (VRQA) 

The Victorian Registration and Qualifications Authority (VRQA) is a statutory authority established under the Education and Training Reform Act 2006, and is responsible to the Minister for Education, the Minister for Training and Skills, and the Minister for Trade and Investment. The VRQA registers: vocational education and training (VET) providers delivering accredited training to domestic students in Victoria only, or Victoria and Western Australia only; school education providers, including approval on the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS) for courses in schools; school and non-school senior secondary or foundation secondary education providers; school boarding premises; and children for home schooling in Victoria. 

The VRQA also: regulates apprenticeships and traineeships in Victoria; issues trade papers; recognises group training organisations (GTOs) in Victoria; approves school and non-school providers as overseas secondary student exchange organisations; accredits courses and registers qualifications for VRQA-registered providers and senior secondary courses and qualifications in Victoria; investigates complaints against its registered providers; maintains a register of all VRQA-registered education providers and accredited courses; and acts to protect the interests of students as consumers of education (Annual report 2022-23, p. 5). 

The VRQA receives income from the Department of Education in the form of grant funding, and it charges fees for registration of providers of education and training and accreditation of courses under the Education and Training Reform Act 2006. The estimated grant to VRQA is not provided in the 2024-25 budget papers. The VRQA reported revenue and income of slightly less than $17.75 million in 2022-23, consisting of grant funding of around $16.92 million and nearly $829 000 from registration and accreditation fees (Annual report 2022-23, p. 60).

Training providers and programs

Boosting access to Free TAFE and training services

$394.3 million is allocated over three years commencing from 2023-24 ($131.4 million in 2024-25) to meet expected demand for eligible students to undertake accredited vocational education and training (VET), including through Free TAFE and expanded eligibility in priority areas. This initiative is partially funded from the National Skills Agreement (NSA) Commonwealth Revenue (Budget paper no. 3: Service delivery, pp. 59 and 63).

Modernising TAFE to support teachers

$4.6 million is provided in 2024-25 to plan and develop a modern human resources system that is purpose-built for TAFE teachers and support staff across the TAFE network. The system will be designed to promote staff recruitment, support staff mobility within the network, better manage teaching staff accreditation and improve workforce planning. This initiative is funded from the National Skills Agreement (NSA) Commonwealth Revenue (Budget paper no. 3: Service delivery, pp. 59 and 64).

Retraining for high-priority industries (Skills First Skill Set initiative)

$15.8 million is allocated in 2024-25 and 2025-26 ($31.6 million in total) to continue enabling the rapid retraining of workers into high-priority industries through accredited skill sets listed on the Training Needs List. The aim of the provision of the government subsidised training is to support more workers to quickly upskill, improving industry responsiveness and business productivity. This initiative is partially funded from the National Skills Agreement (NSA) Commonwealth Revenue (Budget paper no. 3: Service delivery, pp. 59 and 64; Budget paper no. 2: Strategy and outlook, p. 12).

Senior Secondary Pathways Reform

$19 million is provided in 2024-25 ($37.6 million over three years) to improve access to vocational education and training (VET) delivered to school students through the Jobs, Skills, and Pathways Coordination program, which supports schools with administration support for delivery. This initiative will also pilot a vocational experience program to support pre-senior secondary career planning and participation in industry and related vocational pathway immersion programs. Funding is also provided to enhance perception and access to vocational and applied learning and career education including challenging gender biases (Budget paper no. 3: Service delivery, pp. 12 and 17).

Strengthening ongoing support for Tech Schools

$14 million ($700 000 in 2024-25) is allocated over four years to expand the reach of Tech Schools across Victoria. The initiative will support regional and rural students to access Mobile Tech Schools, the Tech Schools Virtual and Remote program and STEM camps to enable participation, immersion and future careers in STEM. Further funding is also provided for the operations of new Tech Schools in Frankston, Hume, Brimbank and Wangaratta (Budget paper no. 3: Service delivery, pp. 12 and 17).

TAFE Services Fund

$82.6 million in 2024-25 and $30.1 million in 2025-26 is provided to continue to support the TAFE Network as Victoria's trusted public provider of choice, including through the provision of student support services, student inclusion and wellbeing programs, training delivery in priority thin markets and regions, strong governance, and a high-quality teaching workforce. The TAFE Network is critical in meeting Victoria's current and future skills requirements and economic growth. This initiative is partially funded from the National Skills Agreement (NSA) Commonwealth Revenue (Budget paper no. 3: Service delivery, pp. 59 and 64).

Continuing programs

The following existing programs are highlighted in Budget paper no. 2: Strategy and outlook (p. 46):

• Free TAFE, which is removing financial barriers to study and supporting Victorians to train in over 80 qualifications and short courses including construction, clean energy and care industries [2018-19 Budget paper no. 3: Service delivery, pp. 41 and 50-51]
• the Major Project Skills Guarantee, which requires contractors on eligible government projects to deliver at least 10 per cent of labour hours using apprentices, trainees and cadets [Media release, 21 December 2015]
• the Victorian Early Childhood Teacher Incentives program, including teacher location incentives of up to $50 000 [Media release, 21 June 2021] 
• $437 million to provide free study initiatives, and to support recruitment and training of 17 000 nurses and midwives now and into the future [Media release, 28 August 2022]
• almost $370 million to bolster the early childhood workforce, including through upskilling 780 diploma-qualified educators to become degree-qualified teachers, delivering better placement experiences and earn and learn schemes [Media release, 2 January 2022] 
• $28 million over four years for clean energy worker training centres for hydrogen and wind, and an SEC Centre of Training Excellence to coordinate and accredit courses in clean energy [2023-24 Budget paper no. 3: Service delivery, pp. 28, 33-34].

Building Better TAFE Fund

Around $122.5 million is provided in 2024-25 for the following six TAFE projects through the Building Better TAFE Fund: 

• $41.81 million for the new TAFE campus in Melton for Bendigo Kangan Institute
• $17.324 million for the new TAFE campus in Sunbury for Bendigo Kangan Institute
• $34.5 million for the Disability Services Hub and Student Hub redevelopment at The Gordon TAFE Geelong campus
• $2.03 million for the Community Health and Learning Hub at Bendigo Kangan Institute Castlemaine campus
• $214 000 for the Archer Street Campus Redevelopment in Shepparton for GOTAFE
• $26.7 million for the statewide TAFE Clean Energy Fund (Budget paper no. 4: State capital program, p. 71-72).

Training, Higher Education and Workforce Development

The Training, Higher Education and Workforce Development output of the Department of Jobs, Skills, Industry and Regions supports Victorians to gain the skills and capabilities essential for success in employment and further training or study. The Department works with the TAFE and training sector to deliver quality training that strongly supports industry to meet the evolving needs of the economy, promotes equity and addresses disadvantage, with an emphasis on growth sectors of the economy. This output includes the functions of training system design, industry engagement, contracting and monitoring of quality and training services including accredited and pre-accredited vocational education and training (VET). The total cost for the output in 2024-25 is estimated at $2 502.5 million (2024-25 Department performance statement, pp. 77 and 91-92).

How to cite this page

NCVER (National Centre for Vocational Education Research) 2024, Budget highlights: Victoria 2024-25, VET Knowledge Bank, NCVER, Adelaide, <https://www.voced.edu.au/vet-knowledge-bank-policy-initiatives-budget-highlights-victoria-2024-25>.