Address to ITECA’s 2024 Parliamentary Forum

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Acknowledgement of Country

I would like to acknowledge the Ngunnawal and Ngambri people as the Traditional Custodians on the land on which we meet today, and pay my respects to their Elders past and present.

Acknowledgements

I would like to acknowledge Mr Mark McKenzie, Independent Tertiary Education Council Australia (ITECA) Chair.

I also want to acknowledge Mr Ron Maxwell, ITECA Deputy Chair Skills Training and Professor Alan Bowen-James Deputy Chair – Higher Education.

Finally, I’d like to acknowledge Mr Troy Williams ITECA Chief Executive.

Thank you for the introduction and for the opportunity to speak with you all today.

Introduction

I want to begin by emphasising how I try to go about my role, and also touching on some recent developments relevant to the sector.

Firstly, I see the Commonwealth role in the skills and training space through the lens of partnerships - that’s how we achieve our national goals, that’s how we connect Australians’ aspirations to the skills they want and which we need and that’s how we continue to have a diverse and vibrant training sector.

As Minister for Immigration and as Minister for Skills I’ve appreciated the frank dialogue I’ve had with ITECA. My door has always been open: it always will be.

Such dialogue, such an approach is fundamental to good policy.

As ITECA’s media release this morning states, we need ‘well-considered measures’ - not reaction.

And we collectively need to continue to work together to support social licence, which goes to questions of quality and integrity.

The Australian skills and training landscape is one that is constantly evolving. It needs to keep evolving to deliver the high-quality skills so that all Australians can prosper into the future.

The Australian Government acknowledges the vital contributions independent registered training providers (RTOs) make to our vocational education and training (VET) sector.

You are helping people develop the skills that are fundamental for the gaining secure, well-paid jobs. Delivering quality skills training across the nation.

Independent providers have a key role in creating a diverse training environment, where students have choice in provider that suits their needs.

ITECA is a strong advocate for the independent tertiary education sector, presenting a voice to government across a wide range of reforms on behalf of independent providers.

I thank ITECA for your contribution to the many different consultative groups, forums and submission that you participate in. Just some examples, include:

• the VET Workforce Blueprint Steering Group;
• the Training and Education/Foundation Skills Training Package Technical Reference Group;
• The National Training Register VET Users Reference Group.

This commitment to helping shape reforms in across VET demonstrates your interest in supporting high-quality RTOs to consistently hit rigorous training standards.

This is something that we have in common. The Australian Government is working on a range of reforms to support RTOs to deliver quality training for all Australians.

Australian Universities Accord

I want to touch on broader reforms we are undertaking broadly across the tertiary education system, particularly as ITECA represents both higher education and VET providers.

The Australian Universities Accord provides the opportunity to reshape our tertiary education system to be what Australia needs for the future. 

Jobs and Skills Australia analysis shows that nine out of 10 future jobs will require a tertiary qualification, split evenly between VET and higher education. 

That is why the Australian Government, led by my colleague, the Minister for Education, the Hon Jason Clare MP, has set an overall tertiary education attainment target of 80 per cent of working age people with a Certificate III or above by 2050 to guide this growth. 

We have committed to creating the Australian Tertiary Education Commission – the ATEC – as a steward for the tertiary education system to drive growth through equity. 

Tertiary Harmonisation

Creating greater parity and flexibility between VET and higher education is critical to achieving the goals of the University Accords. It is about opening pathways for students to gain tertiary qualifications.

We have committed $27.7 million in the latest budget to implement measures that lay the foundations for greater tertiary harmonisation. 

This includes measures that will improve tertiary education experiences and pathways for students through better arrangements for credit recognition between VET and higher education.

We are also working on ways to improve regulatory approaches for dual sector providers.

ITECA is positioned to provide unique insights for getting VET and higher education working more closely together to deliver the skills Australia needs and meet the aspirations of our students into the future.

National Skills Agreement

On the skills and training front, we are nearly a full year into the National Skills Agreement (NSA). It is a landmark agreement, between the Australian, state and territory governments, which started on 1 January 2024. The first agreement of its kind in more than a decade.

The NSA is increasing government investment in the national VET system. Over the five years of the agreement, we are investing up to $12.6 billion dollars. In combination with the states and territories, more than $30 billion is being invested to expand and strengthening the VET sector.

But the NSA represents more than a funding agreement. It is the foundation of how we want to work in together with all stakeholders to improve the delivery of skills training in Australia. It outlines the national priorities that have been agreed by all governments.

Opportunities for independent RTOs

While the National Skills Agreement is committed to placing TAFE at the heart, the benefits flow through to the entire VET sector.

States and territories will have more funding to invest in their respective VET systems, to support high-quality, responsive and accessible training.

The focus on policy reforms such as improving VET data and evidence, helping more students complete their training, supporting the VET training workforce and ensuring access to foundational literacy and numeracy skills will benefit students, trainers and providers alike.

The new stewardship model outlined in the agreement will support governments to work collaboratively and purposefully towards national priorities, while preserving flexibility for states to align local skills supply with demand.

For the entirety of the sector, the agreement is a signpost of how we want to work together, drawing on partnerships and expertise across the system to deliver on these goals

Gathering the expertise and insights from organisations like yours. Making sure that we are getting the right people around the table to find the solutions that will work for the challenges we face.

Revised Standards for RTOs

To achieve the goals of the National Skills Agreement and deliver on our national priorities, we need to ensure we have the right operating framework in place for the VET sector.

In October, we released policy drafts of the revised Standards for Registered Training Organisations, which will come into effect on 1 July 2025.

The current standards have been in place for almost a decade. Through consultation with the sector, it was clear that they had to better reflect the diversity of the VET sector and to support quality outcomes across different RTO settings and delivery contexts.

The revised standards aim to ensure students receive quality training to get them into well-paid secure jobs, gaining industry-relevant skills and knowledge for today and into the future.

We want to raise the bar for VET providers. The revised Standards will embed quality aspirations and foster a shared understanding of what quality training delivery means for all users of the VET system.

This will provide clarity and set the expectation of the outcomes and the requirements all RTOs are expected to meet.

The revised Standards will support the diverse range of private providers, community and adult education providers, enterprise RTOs and VET delivered in secondary schools, as well as public providers.

Importantly, the revised Standards have been designed to support a more nuanced approach to regulation. RTOs will be able to demonstrate compliance in ways that are appropriate for how they deliver training.

We want to ensure that all RTOs understand these changes and are well placed to ensure their systems and practices align with the revised Standards.  

To make sure this can happen, there will be ongoing engagement with the sector leading up to the commencement of the revised Standards.

This includes policy guidance to help training providers, trainers and assessors understand the intent behind changes to the revised Standards. ASQA will also provide additional guidance to the sector over the coming months.

VET Workforce Blueprint

The VET workforce is crucial to a strong and vibrant VET sector.

We acknowledge the challenges the VET workforce is experiencing and have delivered the VET Workforce Blueprint to provide a roadmap to support, grow and sustain the VET workforce for all RTO types and contexts.

The Blueprint acknowledges the important contribution all provider types make, including independent RTOs, to ensuring high-quality learner outcomes, helping people obtain meaningful, secure and well-paid jobs, and providing opportunities to skill, reskill and upskill, building pathways for lifelong learning.

The Blueprint identifies opportunities and actions to attract, retain, develop and support the VET workforce. The goals of the Blueprint and its actions are to:

• grow the workforce
• retain and develop the workforce, and
• understand the workforce.

The Government is investing up to $100 million through the NSA for initiatives to respond to the Blueprint.

This includes $70 million for state and territory initiatives, with matched funding from states and territories, and $30 million for national action.

To support the release of the Blueprint, the Government is commencing work on an initial suite of nationally led ‘foundational’ actions. These include:

• undertaking comprehensive occupational mapping to assist with a greater understanding of workforce roles
• developing a VET workforce data strategy, and
• establishing an ongoing research program to investigate workforce issues.

It will take all stakeholders, including governments, RTOs, industry, peak organisations, unions and employers, working together, to support long-term change.

Jobs and Skills Councils-led VET Workforce Project

The Australian Government has provided an additional $12 million for Jobs and Skills Councils (JSCs) to take carriage of industry-led initiatives that respond to VET Workforce challenges for their industries.

This project complements and contributes to the actions of the VET Workforce Blueprint.

The project requires JSCs to work collaboratively with industry and VET stakeholders. It is a key priority for JSCs to continue building strong connections across industry and the tertiary education sector and collaboratively find solutions to VET workforce challenges.

I know that engagement with ITECA and RTOs is integral for this work to succeed.

Conclusion

The Australian Government is committed to improving our VET sector, making sure it is worldclass, delivering the quality skills training we need for all Australians to go into secure well-paid jobs.

This is what our work for the VET sector is about. Ensuring students are the beneficiaries of high-quality training. A sentiment that I know ITECA is a strong advocate for.

Through the NSA we are providing more funds for states and territories to invest in their training sectors, so that local solutions can address local issues.

The revised Standards for RTOs aims to raise the bar for providers, where there is clarity on what high-quality delivery means for all users of VET.

The VET Workforce Blueprint provides a roadmap to address the workforce challenges that are currently being experienced. A sustainable workforce means students can confidently turn to VET to gain the skills they want.

We are working to create greater harmony across the tertiary education system. A tertiary education system that is easier for students to traverse.

To achieve success across these reforms, we need to work in partnership. It is central to how the Australian Government has been progressing these reforms. We will continue to operate as partners. This ensures we understand the perspective of all stakeholders we work with and value their contribution.

Once again, I thank ITECA for your commitment and contribution to the changes that we are progressing with the VET sector. We will continue to be engaged with you as reforms progress, and for you to provide a strong voice for your members.