The Albanese Government’s proposed legislation to make the fee-free TAFE initiative permanent has sparked a discussion as stakeholders present their views to the Senate Committee Inquiry. The bill seeks to guarantee 100,000 fee-free TAFE positions annually at an estimated cost of $500 million, placing vocational education through public providers at the forefront of the nation’s skills and training agenda.
The Australian Education Union (AEU) has strongly backed the proposal, highlighting its transformative impact on students and the vocational education sector. AEU federal president Correna Haythorpe emphasised that free TAFE has significantly reduced financial barriers for students, opening pathways in industries experiencing critical skill shortages.
“The introduction of free TAFE has been life-changing for students as it has significantly reduced financial barriers for students pursuing vocational education and provided the opportunity to investigate different career pathways, particularly in areas of extreme skill shortage,” Haythorpe said, calling the initiative a “must-needed next step” to support lifelong learning and workforce participation.
However, the AEU has stressed the need for parallel investment to address challenges within the system. These include excessive workloads for staff, inadequate infrastructure, and growing administrative burdens. The union has recommended funding improvements to TAFE facilities and equipment while addressing workforce conditions to ensure the program’s sustainability.
Despite this support, the initiative has drawn criticism from industry stakeholders and opposition parties. Master Builders Australia (MBA) and the Housing Industry Association (HIA) have voiced concerns that the bill unfairly favours public TAFE providers over private and industry-led training programs.
MBA CEO Denita Wawn described the policy as anti-competitive, stating, “Free TAFE initiatives distort the market towards TAFE-delivered courses over industry-led providers.”
HIA executive director Geordan Murray echoed similar concerns, pointing to a decline in apprenticeships within the construction sector despite the program’s operation. “It doesn’t appear that the scheme is doing enough to boost participation,” Murray said, urging the government to pause the bill.
Critics have also flagged issues with course completion rates. While skills minister Andrew Giles reported that over 568,400 Australians have enrolled in fee-free TAFE since January 2024, completion rates remain around 20%. He attributed this figure to the time required for course completion, defending the program as a long-term investment in addressing workforce shortages. “Free TAFE is helping Australians get better jobs with higher wages,” he noted.
The opposition has remained steadfast in its criticism of the bill, with shadow minister for industry, skills and training Sussan Ley calling for its shelving. Ley argued that despite significant government expenditure, apprentice and trainee numbers have declined.
The Coalition has pointed to worsening shortages in critical industries, such as construction, which BuildSkills Australia estimates will face a shortfall of 370,000 workers by 2030.