National Skills Agreement

A 5-year joint agreement between the Commonwealth and states and territories to strengthen the VET sector, commenced on 1 January 2024.

The Agreement will:

• Transform the national VET system, ensuring it provides high quality, responsive and accessible education and training to boost productivity
• support Australians to future proof their careers by obtaining the skills and capabilities they need to obtain well-paid, secure jobs and support our economy
• ensure Australia has the skilled workforce it needs now and into the future, by returning  TAFE to the heart of the VET sector.

The landmark Agreement provides states and territories with access to additional Commonwealth funds of up to $3.7 billion over 5 years. This takes total Commonwealth investment in state and territory training systems up to $12.6 billion over 5 years.

The Agreement also represents a fundamental shift in the way that governments work together to address shared challenges and capitalise on shared opportunities in the VET system. In an historic first, a new stewardship model will support governments to work collaboratively and purposefully towards national priorities, while preserving flexibility to align local skills supply with demand.

National priorities are areas governments have agreed require focused effort to address critical skills and workforce shortages. The agreed national priorities are:

• gender equality
• Closing the Gap
• supporting the Net Zero transformation
• sustaining essential care services
• developing Australia’s sovereign capability and food security
• ensuring Australia’s digital and technology capability
• delivering housing supply, and
• delivering reforms to improve the regulation of VET qualifications and quality.

The Agreement gives effect to National Cabinet’s vision statement and guiding principles on longer-term VET reform. The National Cabinet endorsed the Agreement on 16 October 2023.