The Minns Labor Government's 2025-26 Budget will deliver a record $3.4 billion investment in TAFE and skills funding, as part of its plan to tackle the housing crisis by building the skilled workforce needed to construct more homes across the state.
The Government is investing $40.2 million over two years towards fee free apprenticeships and traineeships which will fund an additional 23,000 construction apprenticeships, providing people with access to free training for jobs including plumbing, carpentry and electrotechnology.
These investments are complemented by $13.8 millionConstruction Workforce Package, designed to upskill and support 4,800 workers into residential construction jobs over the next two years-boosting the number of tradies on job sites and accelerating the delivery of much-needed homes.
Together, these initiatives aim to fast-track a new pipeline of skilled workers ready to meet the housing challenge head-on.
The Construction Workforce Package will aim to train people already in the workforce, support career changers and skilled migrants, and engage young people considering careers in the building trades. It includes:
- $7 million for 800 existing workers and skilled migrants to gain formal trade qualifications through tailored assessment, training and trade testing.
- $4.8 million to support 4,000 existing workers to upskill or transition into trades, providing training for labourers, semi-skilled workers, and those changing careers, helping them move into higher-skilled construction roles or retrain in new technologies and methods.
- $2 million to fund school careers fairs, industry school partnerships, try-a-trade opportunities for up to 3,000 school students to pursue a career in the construction workforce through programs including Tiny Homes and Girls Can Too.
In addition to the targeted Construction Workforce Package, the Minns Labor Government is delivering broader reforms to strengthen TAFE NSW and ensure it remains a modern, accessible, and high-quality training provider.
This year's record $2.8 billion investment includes critical investments to upgrade facilities, secure teaching staff, and support strategic campus relocations-laying the groundwork for a more skilled and future-ready workforce.
Key measures include:
- $121 millionto repair TAFE NSW campuses statewide, including modernising learning and teaching spaces and investing in digital equipment ensuring teachers and students benefit from state-of-the-art facilities and technology.
- $78 million to continue to convert eligible teachers from casual to permanent roles, strengthening job security and helping TAFE NSW attract and retain high quality educators to shape the future workforce.
- $100 million to support the strategic relocation of teaching operations from TAFE NSW Bankstown to Western Sydney University Tower and TAFE NSW Padstow to facilitate construction of the new Bankstown Hospital while ensuring continuity in education delivery.
This is a record investment in TAFE NSW and skills funding, reversing over a decade of underfunding by the former Liberal-National Government and re-establishing vocational education as a key solution to the housing and workforce challenges facing NSW.
We know there's much more to do, but we're continuing to rebuild the sector by:
- Establishing three Manufacturing Centres of Excellence at TAFE NSW campuses in the Hunter, Illawarra and Western Sydney, in partnership with the federal government.
- Providing 85% of the TAFE NSW teaching workforce greater job security by converting approximately 3000 casual teaching staff into temporary and permanent positions, ensuring a stable and experienced workforce.
- Upgrading 129 campuses across the state by providing new air-conditioning, lights, 15,300 new smoke detectors and Wi-Fi upgrades.
Treasurer Daniel Mookhey said:
"This Budget brings together housing and skills to meet the state's future needs.
"You can't build homes without workers and this Budget delivers both. It ensures our investment in housing is backed by an investment in people.
"It's a targeted investment that delivers immediate benefits while building long-term capacity in the NSW workforce."
Minister for Skills, TAFE and Tertiary Education Steve Whan said:
"TAFE NSW is crucial to delivering the skills we need now and, in the future, and this landmark investment will ensure TAFE continues to meet the needs of industry and the community.
"Whether you're already working in construction, new to the industry, or just starting out at school - the Construction Workforce Package will open new pathways into construction for thousands of people across the state.
"This government is funding the training and skills development needed to grow our construction workforce and help tackle the state's housing challenges."
