Skills training funding favours public TAFEs, limiting student choice. ITECA calls for equitable funding to improve outcomes.

New data reveals a significant bias in government funding for skills training, with public TAFE colleges receiving a disproportionate share compared to independent Registered Training Organisations (RTOs). This finding, released by the Independent Tertiary Education Council Australia (ITECA), raises concerns about limited student choice and access to high-quality, industry-relevant training options.

According to the National Centre for Vocational Education Research (NCVER), government expenditure on skills training reached $6.54 billion in 2023, a substantial increase from the previous year. However, only 22.3% of this funding was allocated to support students studying with independent RTOs. In contrast, public providers, including TAFEs, received a staggering 68.6% of the total funding, with an additional $350 million allocated beyond the funding specifically designated for TAFEs.

“This funding imbalance is concerning, especially considering the growing demand for flexible, industry-aligned training options often offered by independent RTOs,” stated Troy Williams, ITECA Chief Executive. “Student choice should be paramount in skills funding policy, empowering individuals to select the training provider best suited to their career goals.”

ITECA’s analysis highlights significant disparities across Australian states and territories. South Australia leads with 35.9% of its skills expenditure directed towards independent RTOs, followed by Queensland at 30.8% and Victoria at 26%. However, other jurisdictions allocate significantly less funding to independent providers, with some figures falling in the mid-teens.

“We urge all levels of government to adopt a student-centred funding model,” Mr Williams emphasised. “This approach would ensure students have equitable access to subsidised training at their chosen quality provider, fostering greater diversity and choice within the skills training sector.”

ITECA’s Federal Election Manifesto underscores the importance of diversity and choice in a high-performing skills training system. Supporting students’ right to choose their preferred provider is crucial for building an inclusive and future-ready workforce. Notably, NCVER data demonstrates that independent RTOs often outperform public providers, boasting higher qualification completion rates and achieving better outcomes across various student satisfaction metrics.

“The NCVER data clearly shows that private RTOs deliver strong results for students,” Mr Williams concluded. “This should give taxpayers confidence in supporting student choice and investing in a diverse and competitive skills training sector.”

About ITECA:

Formed in 1992, the Independent Tertiary Education Council Australia (ITECA) is the peak body representing independent Registered Training Organisations (RTOs) and higher education providers. Committed to quality education and student choice, ITECA advocates for policy reform, supports member growth, and ensures independent providers remain central to Australia’s skills training and higher education landscape.

Key Facts:

• Total government expenditure on skills training in 2023: $6.54 billion
• Funding allocated to students studying with independent RTOs: 22.3%
• Funding allocated to public providers (including TAFEs): 68.6%
• Independent RTOs demonstrate higher qualification completion rates and better student satisfaction outcomes compared to public TAFEs.

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