NSW has become the first state or territory to sign a new Free TAFE agreement with the Commonwealth, locking in a $560 million joint investment to grow the skilled workforce.
Federal Minister for Skills and Training Andrew Giles and NSW Minister for Skills, TAFE and Tertiary Education Steve Whan signed the agreement on Wednesday, 21 October. It will deliver around 160,000 Free TAFE and training places in NSW across five years from 2027.
“Free TAFE is life-changing,” said Federal Minister for Skills and Training Andrew Giles.
“From construction to agriculture, nursing to aged care, cyber security to early childhood education, Free TAFE is backing in Australians to get the skills they want, to do the jobs we need.”
The new five-year partnership builds on previous time-limited arrangements. It aims to give greater certainty and stability to the state’s vocational education system, supporting long-term planning and sustained access to Free TAFE.
The agreement is the first to be signed since the Free TAFE Act passed the Australian Parliament. It delivers on a commitment to make Free TAFE an enduring feature of the nation’s skills system.
“Hundreds of thousands of Australians have benefitted so far from the program, and now hundreds of thousands more will continue to in New South Wales following this agreement,” Mr Giles said.
The partnership builds on NSW’s existing commitments for fee-free training, reducing financial barriers for people who are thinking about training or taking up a new career.
Free TAFE will help deliver a pipeline of workers in critical skills areas by removing fees from qualifications in occupations that support priority areas. They include housing construction, energy, digital and technology, and essential care services.
The agreement also includes a focus on upskilling people who are typically under-represented in the economy, to help meet the skilled workforce shortage.
“It’s terrific to see the new Free TAFE Agreement in place, an important milestone that provides long-term stability and certainty for the NSW vocational education and training system while delivering real cost-of-living relief for tens of thousands of New South Wales students,” said NSW Minister for Skills, TAFE and Tertiary Education Steve Whan.
“Backed by the Minns Labor Government’s record $3.46 billion investment in skills, training and TAFE, Free TAFE has encouraged more people in our state to take up vocational education and training in the critical skills areas that will make a real difference to the economic future of our state.”
Mr Giles said he welcomed NSW leading the country.
“I welcome the Minns Labor Government signing on as the first state or territory to the Free TAFE Agreement, leading the country and in doing so ensuring better outcomes for VET students across the state,” he said.
“This is what we mean by delivering the skills that work,” Mr Whan said.
“By removing barriers, including upfront costs, we’re creating pathways into secure jobs and building the workforce needed to deliver more homes, support the clean energy transition and strengthen essential services across New South Wales.”
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