Government expenditure on vocational education and training (VET) increased 55.8% between 2019 and 2024, according to NCVER’s Government funding of VET 2024 which outlines how funding flows across the VET system.
The largest increase was employer assistance expenditure, mainly driven by temporary Australian Government subsidies introduced to support apprenticeship commencements and completions during the COVID-19 pandemic (2020 to 2022).
Over this period the Australian Government employer assistance expenditure increased from $1.3 billion to $3.8 billion (192.8%) and has been decreasing since with the continued phasing out of pandemic support initiatives.
Compared with 2023, total Government expenditure on VET was $10.0 billion in 2024, down $892.2 million (8.2%). ‘The main contributor to this decrease is the drop in employer assistance expenditure of $1.7 billion (52.9%) which is expected as the pandemic support initiatives run their course. All other areas of VET expenditure increased during this period,' says John King, NCVER’s Managing Director.
VET delivery and capital expenditure increased to $7.2 billion (9.2%) from 2023. Of this, $5.3 billion was paid to public providers, following Australian and state and territory governments commitment to new initiatives including Fee-Free TAFE Skills Agreement and TAFE centres of excellence.
Student assistance increased by $213.2 million (122.3%) to $387.5 million aligning with the Government's broader response to the cost-of-living crisis.
In 2024 VET delivery expenditure by training package was highest for areas of agreed national priority that sustain essential care services and help deliver housing supply[1]:
- Community Services at $821.9 million, an increase of $121.2 million (17.3%)
- Construction, Plumbing Services Integrated Framework at $443.8 million, an increase of $37.5 million (9.2%)
- Health at $374.8 million, an increase of $71.5 million (23.6%).
As part of the National Skills Agreement, funding for VET has increased across key student cohorts, with a clear focus on equity and inclusion[2]. In regional areas funding increased by $63.1 million (5.4%&), for students with a disability the funding uplift was $41.2 million (12.8 %) and for Indigenous students, funding rose by $73.5 million (24.4 %).
[2] https://www.dewr.gov.au/national-skills-agreement
Background:
Vocational education and training (VET) in Australia is jointly funded by the Australian and state and territory governments. States and territories fund delivery to meet local and national skills needs, while the Australian Government supports national priorities and provides additional funding under intergovernmental funding arrangements.
Government funding of VET 2024 provides an insight into the flow of funding into the public VET sector, what is funded, and how it is distributed. Information is derived from the National VET Funding Collection, which was introduced in 2017 to replace the National VET Finance Collection.
Data are sourced from financial and training records held by the Australian Government Department of Employment and Workplace Relations, and state and territory departments responsible for VET.
Download the report: Government funding of VET
Enquiries: Joanne Burkert P: +61 8 8230 8481 E: communications@ncver.edu.au
About NCVER: we are the main provider of research, statistics and data on Australia’s VET sector. Our services help promote better understanding of VET and assist policy makers, practitioners, industry, training providers, and students to make informed decisions.
This work has been produced by NCVER on behalf of the Australian Government and state and territory governments, with funding provided through the Australian Government Department of Employment and Workplace Relations.