The Albanese government’s plan to make fee-free TAFE courses permanent is facing stiff opposition, as the Coalition questions whether recent completion rates are providing value for taxpayer money.
In a significant pre-election announcement, Prime Minister Anthony Albanese and Minister for Skills and Training Andrew Giles on Sunday said Labor will push to legislate 100,000 fee-free TAFE courses per year from 2027.
Fee-free TAFE is already a cornerstone of Labor’s education and training policy platform.
The federal and state governments have deployed $1.5 billion through the Fee-Free TAFE Skills Agreement through to 2026, and the Albanese government committed another $90 million for more housing and construction training places in May.
According to the federal government, fee-free courses have resulted in more than 508,000 enrolments in high-priority fields since January 2023.
Making fee-free TAFE permanent will help fix persistent skills shortages and train jobseekers for “well-paid, secure jobs” well into the future, according to Albanese.
But the Coalition says the real-world benefits are yet to be seen, arguing higher-than-expected enrolment rates are not yet translating to completion rates.
Government documents obtained by the Opposition show 13% of trainees who enrolled in fee-free TAFE courses after January 2023 had completed their training by March 2024.
Many courses span beyond 12 months, and trainees can take their education part-time, skewing the completion results.
Even so, Shadow Minister for Industry, Skills, and Training Sussan Ley on Monday said fee-free TAFE positions have “not made a meaningful impact in alleviating skills shortages.”
The federal government should provide more information on course completion figures before committing permanent funding to those positions, she added.
While the Opposition is making its position clear, Labor’s proposal does have some support in Parliament.
Independent MP Sophie Scamps, who in 2022 hailed the fee-free courses as a win for small businesses seeking qualified workers, backs the proposal.
“Here in Mackellar, we are incredibly understaffed in crucial skilled roles,” Scamps told SmartCompany.
“Our preschools are struggling to find childcare workers, our construction owners cannot find apprentices, just to name a few.
“Our small businesses are doing it tough and need the next generation of skilled workers coming through.”
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
