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Prime Minister Scott Morrison has announced an overhaul of the training and skills sector

May 27, 2020

In an effort to get our economy back on its feet after the devastating fallout from the coronavirus pandemic, Prime Minister Scott Morrison has announced a federal overhaul of Australia’s training sector. Even before the COVID-19 crisis, the VET industry had been facing declining enrolments and a decrease in government funding.

The new JobMaker plan seeks to stimulate jobs and close the skills gap by looking at future business needs.

According to NCVER, spending on the VET sector is currently the lowest it’s been for 10 years. And while the Prime Minister has not announced any new funding for the vocational training sector, he is launching an overhaul of what has been described as the “bewildering” current training system. Scott Morrison has stated that he wants to simplify the system by equalising the rules between states, as well as monitor where the $1.5 billion in federal funding is being spent.

One Goal—“Make Jobs”

The current system has failed both workers and employers. As part of the new JobMaker plan, the government is hoping that a skills overhaul will drive our nation’s coronavirus recovery. And with border restrictions halting skilled foreign workers, now is the time to be upskilling Australians to ensure a speedy economic recovery.

2018 saw VET enrolments fall from 1.9 million to 1.1 million, and the drop in apprenticeships in the leadup to the pandemic shows that our training industry had taken a hit before the crisis had even started. The JobMaker plan seeks to get VET education back on its feet and ensure that a generation of students don’t miss out.

A Big Overhaul

While there’s no firm start date, we do know that this overhaul of our nation’s training system is set out to fix its 3 biggest problems:

  1. The current system is too complex and has been unresponsive to industry demand for skills
  2. There’s no clear outline for what skills will be needed in the future
  3. Full of inconsistencies, the system has very little financial accountability for where its federal funding is being spent

The overhaul is set to begin “in the coming months”, and will need to start soon to help the VET industry be as efficient as possible in its role in skilling our nation.

Future-Proofing is Key

The overhauling of the training industry is a stark reminder that vocational education needs to be constantly adapting to the demands of the economy and the needs of Australia. Every RTO must ensure it’s doing the best it can to support its students and comply with the regulating authorities.

To make sure your organisation is ready for whatever challenges lie ahead, make sure you have the resources and tools to support you through the coronavirus and beyond. A system like aXcelerate will help you stay aligned with ever-changing government regulations and let you manage all aspects of running an RTO through the one system—whether it’s AVETMISS and CRICOS reporting, mapping assessment items to TGA components, or keeping on top of student engagement.

There are some big changes in store for the VET industry as Morrison’s JobMaker plan rolls out over the next few months. As Australia seeks to support its economy through training and skilling, the overhaul of the system will hopefully help us get back on our feet in a post-coronavirus world.

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