VET Funding Review to Fix TAFE System

The Andrews Labor Government today announced a comprehensive, independent review of the funding of Victoria’s vocational education and training (VET) system, which the Liberals left in a state of turmoil.

Announcing the details of the VET Funding Review, Minister for Training and Skills Steve Herbert said the election commitment would provide a more sustainable model for public TAFE Institutes and private training providers.

The former Liberal Government left our training sector in crisis. Government contributions to public TAFEs fell from $733 million in 2011 to $468 million in 2014, leaving many TAFEs at risk of financial collapse.

At the same time, the former Government’s constant changes to subsidy rates have caused confusion and made it difficult to make long-term plans for private providers.

These sudden and repeated changes caused financial instability, undermining the ability of both TAFEs and private training providers to support Victoria’s growing industries.

The VET Funding Review, to be headed by former Holmesglen TAFE head Bruce Mackenzie, with support from deputy reviewer and former VECCI and Jayco Corporation Chief Executive Neil Coulson, will ensure all training providers are supported through a more sustainable funding model so they can meet the needs of growing industries.

The review will seek input from Victorian students, parents, employers, training providers and other stakeholders over the coming weeks.

An interim report will be delivered within 100 days of its commencement, with the final report completed later this year. This will ensure the Labor Government can consider the recommendations ahead of the start of the 2016 TAFE and training year.

Quotes attributable to Minister for Training and Skills, Steve Herbert

“Liberal cuts left our TAFE and training system in turmoil.”

“This independent review is about repairing the damage and rebuilding our TAFE and training system by developing a more stable and sustainable funding model to better meet the changing skills needs of our economy.”

“Our TAFE Rescue Fund will make sure the system survives next year and the VET Funding Review will make sure it survives next decade.”