Address to the McKell Institute, Perth

I’m excited to be here, thanks to the McKell Institute, to talk about my role as Australia’s Minister for Skills and Training, and my approach to this responsibility.

At this critical juncture – following a strong endorsement of the Albanese Labor Government on 3 May, especially here in the West, and in a challenging global environment in which many centre-left parties are struggling.

For me, the portfolio plays a central role in advancing our movement’s purpose of building a good society: a country in which no one is held back, and no one left behind.

Labor’s approach to skills and training is focused on realising this vision.

Because we know that our greatest asset is our people, who in their diversity have an extraordinary, unmatched capacity.

And we know, if we support everyone to realise their potential, this is the key to both realising our national aspirations and securing an enduring social compact.

For Labor, a strong economy isn’t an end, it’s the means – to good lives, anchored in secure and well-paid work.

So Labor’s approach to skills and training is about building a bridge that connects Australians to contribution and to full participation – in society, not just the labour market.

That ties national interests to individual aspirations, holding us together as an Australian community.

Standing against the forces that seek to divide us, at a time when this is more important than ever.

In this speech I want to set out the challenges we confronted on coming to government, how we have responded and what is to come.

And I want to set out the consequences of not getting this right, looking to elsewhere in the world where reactionary forms of populism are taking hold.

I believe that the real opposition our Government faces at the moment isn’t the Liberal or National Parties, nor One Nation or even the Greens Party – it’s a creeping sense of alienation in large parts of the community, where people feel increasingly disconnected from opportunity and increasingly pessimistic about their future.

Cynical politicians and commentators seek to exploit this, to weaponise grievance and to divide Australians.

To undermine trust and to allocate blame, not take responsibility for addressing the real concerns around cost of living pressures in the here and now, and insecurity and lack of control going forward.

This needs to be confronted head-on.

Australians deserve leadership that addresses their concerns, answering the moment but looking beyond it.

In the Albanese Government, every day we are focused on delivery.

On keeping our promises – because they matter in themselves but also because we need to rebuild trust in politics.

And hope for a fairer future, for all of us.

Ensuring Australians can get the skills they want to be part of shaping that future is a big part of this puzzle.

The fact is, at the time our Government was first elected, Australia was experiencing our worst skills shortage in my lifetime.

The worst here in half a century.

The second-worst of all advanced economies as the world emerged from pandemic.

This didn’t come about by accident, and past policy failures not only mean skills shortages today but have long-run consequences for the lives of Australians.

Understanding how we got to where we are is vital to getting out, to doing better, to fulfilling our potential as a nation.

While the impact of the COVID pandemic shouldn’t be overlooked, it’s clear that the state of the labour market reflected a structural malaise, rather than simply being a product of those circumstances.

The skills shortages that were holding back our recovery then, and which continue to exert a drag on growth today, came about in a very large part through deliberate actions on the part of the former government.

The government that elevated low-wage growth as ‘a deliberate design feature’ of their approach to economic management, and shut out the voices of workers and their unions.

The government that cut $3 billion from TAFE and training, while turning a blind eye to rampant exploitation in the sector.

That failed to land a national agreement on skills over nearly a decade, and with it a failure to tend to the partnerships that progress in Australian society depends.

Turning around a decade of drift and decline isn’t easy.

And it doesn’t happen overnight.

We started by bringing people together at the Jobs and Skills Summit: premiers, business and union leaders, experts – everyone, really.

Except the Liberals, of course – who couldn’t be bothered turning up.

A large amount of consensus was formed through discussions at the Summit, and with it a sense of urgency.

About the workforce and skills challenges to be met.

This led, amongst other reforms, to the landmark National Skills Agreement.

And to the introduction of Free TAFE.

Free TAFE is one of the Albanese Government’s most significant reforms in skills and training, now approaching its third anniversary.

Despite criticism from the Liberals and Nationals, Australians have embraced the program.

Today, I’m pleased to share new milestones that have been reached: over 725,000 Free TAFE enrolments and more than 210,000 course completions nationwide.

That’s hundreds of thousands of Australians gaining qualifications and helping to fill critical skills gaps, in the care economy, in construction, in technology and other areas of priority.

Free TAFE is life-changing.

Everywhere I go, I hear stories of doors opening – new jobs, new careers, and education that’s finally affordable.

For many, aspirations once out of reach are now reality.

Take Natalie, a graduate of South Metro TAFE in WA.

A foster parent and hospitality worker, she seized the chance to reskill as a disability support worker.

With her qualification, she quickly found employment in a residential service – great for her, great for the people she supports, and great for WA, which needs more workers like Natalie.

Bradley is another success story.

After years in retail, the pandemic prompted him to rethink his future. Free TAFE made that possible.

He enrolled in early childhood education without worrying about cost, knowing that he could make the change in the career he’d wanted to for some time.

Free TAFE removes one of the biggest barriers to education – cost – and sends a clear message: our Government backs Australians to succeed.

This isn’t about doing a course for the sake of it; it’s about expanding horizons and building the nation – through every nurse, educator, tech worker, and builder.

Regional Australia is leading the way, with a strong share – 34 per cent – of enrolments from regional and remote communities, proof of how vital TAFE is for skills and opportunity outside the cities.

While Australians overwhelmingly value Free TAFE, the Coalition has done everything possible to block it.

They voted against making it permanent.

Sussan Ley even claimed ‘If you don’t pay for something, you don’t value it’.

That’s not just wrong, it’s out of touch with Australian values.

This is the Coalition at its worst: cutting opportunities and undermining our deeply-held attachment to the fair go.

Looking down on people – not seeking to level the playing field, and encourage everyone to build a career to match their talents and interests to need in the labour market.

One Queensland LNP member even belittled personal care workers as being there to ‘keep our wives and girlfriends happy.’

It’s disrespectful, and it’s contemptuous towards those Australians who train hard and dedicate themselves to caring for others.

By attacking Free TAFE, the Coalition attacks aspiration, too.

They’re ignoring what Australians want: opportunity, respect, and a fair go.

At a time when people are looking for policies that include them and reflect their needs, the Coalition offers nothing but barriers and disrespect.

I think of Emma, a 17-year-old I met at Shellharbour TAFE.

Traditional schooling wasn’t right for her, but she wanted to keep learning and help young people.

A teacher suggested TAFE, and now she’s studying for a Certificate III in Community Services, learning from experienced professionals – and loving it.

Emma’s story is one of hundreds of thousands across Australia.

That’s the power of TAFE and VET.

That’s why Free TAFE matters.

It delivers skills, jobs, and hope – and Australians know it.

The latest data tells us that those Australians who might be at greater risk of feeling left behind are among some of the most enthusiastic in taking up the opportunities of Free TAFE.

Six per cent of Free TAFE enrolments come from First Nations people.

A quarter of enrolments come from job seekers.

Eight and a half per cent from people with disability.

And almost 62 per cent of enrolments are from women.

Free TAFE is working, not just to fill crucial skills gaps in our economy, but to open doors to opportunity that were formerly closed to too many Australians.

Free TAFE is a proof point to Australians who had been feeling forgotten or ignored, that politics can work for them – that we can make a positive difference to their lives.

It’s a national shame that our most recent data tells us that one in five Australian adults struggle with literacy and numeracy.

It’s equally shameful that this data is more than a decade old.

So we don’t know nearly enough about how limited foundation skills have been denying Australians access to employment and community participation.

When the consequences are so grave – with more than nine in ten new jobs requiring post-secondary qualifications, in a labour market increasingly transformed by technology.

Contributing to what’s been described as an epidemic of loneliness.

Undermining community and bonds of trust between Australians.

Driving people away from each other, and sometimes towards extremes that don’t provide solutions – instead fuelling a sense of grievance and blame, that’s often amplified in online echo chambers.

Of course, there isn’t a single, simple solution to this complex challenge.

But recognising that this is a problem has to be the starting point, and recognising too that we must act to ensure that Australians should be supported to effectively participate in social and economic life.

And no Australian should feel left behind or ‘less than’ in a way that drives them away from connections, whether in a workplace or in their community.

This is why we’ve expanded access to the SEE program.

Skills for Education and Employment enables Australians in every community to access the foundation skills that people need for work and for life - language, literacy, numeracy, and increasingly digital skills.

It means that for any Australian seeking that bit of extra help – for whatever reason – they can get it, in a supportive, local, accessible environment.

It’s not only about skills development, but also about building confidence, ending stigma and deepening a sense of belonging and, with that, connection.

And it’s why the Albanese Government is rejoining the PIAAC – Programme for the International Assessment of Adult Competencies. This is equivalent to PISA, and just as important.

It will enable us to track our country’s progress, learn from others, and gain a better understanding of where we can best target support to improve foundation skills across our country.

It will enable us to know, today – not more than a decade ago - how many Australians could do with targeted support, and what that support should look like, given changes in technology, especially the rise of generative AI.

One of the persistent challenges we face remains apprenticeship numbers.

Apprenticeship is the pathway to so many of the roles that are in shortage and in demand now, and looking to the future: electricians and plumbers, technicians and construction trades in particular.

We can see promising green shoots – including having 50,000 more apprentices in training now than prior to the pandemic when the Coalition was in office, and importantly more women starting apprenticeships too.

But this comes in the face of the long-time decline in apprenticeship numbers that dates back to 2012.

There isn’t an easy fix to this – especially after a decade of policy inertia.

We do know that untargeted measures, like the Coalition’s infamous ‘Hamburger University’ BAC and CAC wage subsidies, overwhelmingly did not benefit working people by delivering valuable skills.

For $7 billion spent, the Australian community received poor returns, too, while some businesses improved their bottom line and unscrupulous operators made millions from sharp practices.

Since coming to Government three and a half years ago, we’ve done a lot of important work.

Like introducing Free TAFE and legislating to make it permanent.

Undertaking the Strategic Review of the Australian Apprenticeship Incentive System – and lifting some payments that hadn’t been changed for two decades!

Taking a zero-tolerance approach to mistreatment of apprentices.

Establishing Jobs and Skills Australia and the tripartite Jobs and Skills Councils, so we can better understand what’s happening in the labour market and work collaboratively on our responses.

And our $12.6 billion contribution towards the $30 billion National Skills Agreement between the Commonwealth, and all states and territories.

Setting out shared priorities, and being ambitious in working to meet them.

I want to highlight our appreciation that prioritisation matters, and that targeted support works – something recognised by the Australian Centre for Evaluation’s BAC and CAC review.

As we recognise, unlike our opponents, the need for careful financial management.

Which means being prepared to make choices.

I’m thinking particularly of our Government’s Key Apprenticeship Program, which builds on the success of our New Energy Apprenticeship Program and delivers incentives of up to $10,000 for new apprentices in the clean energy and housing construction sectors.

These programs have seen over 20,000 apprenticeship commencements, with strong data on retention, too.

Backing apprentices in what are critically important industries - building more homes, and ensuring Australia leads the way in embracing the opportunities of renewable energy.

But we know there is much more to do.

Much more – to meet the moment by taking on today’s challenges, and making the most of the opportunities to ensure a future that’s made by and for Australians.

To boost our nation’s productivity, and to increase participation in our labour market and in our society more broadly.

Leadership must come from governments, but equally we need to see industry playing its part too.

There’s some great examples out there.

Including All Purpose Transport that I visited with the Treasurer in Brisbane.

They’ve formed a partnership with TAFE Queensland to ensure that everyone in their business has a tertiary qualification, a development that has meant a great deal to many of the workers there.

It’s given them the chance to further their skills and their careers. It’s built on their sense of self and the pride they take in the work they do and the team they’re a part of.

And the business has seen the benefits too – improved productivity, improved retention and importantly a safer workplace given what staff have been able to learn through their Cert III courses.

We need to see more employers following this example, and investing in training themselves.

Because they are best placed to appreciate the demands of their businesses, and because, as the OECD has recognised, the role of government includes finding ways to encourage employers to take on the responsibilities of training as well as assisting them in managing risks.

Recent research from CEDA has shown a long-run decline in work-related training in Australia, while our European counterparts are doing more. CEDA’s report shows that this decline has been particularly pronounced in priority areas, especially electrical.

We can’t afford to stand still.

Nor to ignore the evidence, and the need to prioritise.

Incentives need to be just that, drivers of behaviour change – in this case increasing engagement and investment, not dead-weight subsidies we can't afford.

Skills and training is one of the most pressing and promising areas of national policy.

It’s not, and can’t be, simply about filling jobs.

I’m concerned rather to build careers, strengthen communities, and secure Australia’s future.

In the Albanese Labor Government, we are building a national skills and training system that is inclusive, responsive, and future-focused.

One that recognises the value of vocational education, the apprenticeship system and our TAFEs.

One that invests in lifelong learning, and ensures that workers, young and old, can adapt to a changing economy with confidence and support.

We must also ensure that our training systems are aligned with the needs of industry, and that they reflect the diversity of our communities.

Through better, and better defined, partnerships between government, educators, unions, and employers.

To ensure that all Australians can access the skills they want, to do the jobs we need.

The real political contest in Australia right now isn’t the Albanese Labor Government against the Liberal Opposition – whoever may be running that clown show.

As they fight amongst themselves to take Australia backwards, we are fighting for the living standards of Australians.

Focusing squarely on the pressures people are under right now.

Through getting wages moving, keeping people in work, strengthening Medicare, managing inflation, and opening the doors of opportunity in education.

Addressing these urgent cost of living concerns now to anchor a fairer, more secure future – a future that’s worthy of the Australian people.

That’s the work and responsibility of a Labor Government that looks to the long-term.

Looking around advanced economies, we see the scale of the challenge before us.

Cost of living impacts and cultural conflicts are dragging down centre-left governments, and parties of government.

Divisive, reactionary populists movements are on the rise from London to Berlin and beyond – this can’t be ignored.

Our opponents and their cheerleaders seek to import the worst of overseas sloganeering, and that dead end road that is the politics of despair.

We have been confronting this, and working day and night to address its causes by focusing on the everyday needs of Australians.

But we can’t – and we won’t – rest on our laurels.

Our fight is for a stronger and distinctly Australian social compact – against a sense of pessimism that we can’t let take hold of the hearts and minds of Australians.

And those who cynically seek to exploit the pressures people are under, playing dishonest blame games and pretending these are solutions.

In Australian Labor, we defeat populism by delivering.

By maintaining our focus.

By doing the things we said we’d do.

By listening, and by building trust – in the possibilities of politics to make a difference.

To make today easier, and tomorrow more hopeful.

Including through doing all we can to equip everyone with the skills they need to fulfil their potential and make their contribution.

This is the fight I’m focused on as Minister for Skills and Training.

Thank you.