This year's federal budget's investment in vocational training is a welcome step towards addressing the nation's critical skills shortage. However, to make the taxpayer's investment more effective, the Australian Government needed to put students at the centre of the system. It's through the decisions of students to study with independent Registered Training Organisations (RTOs that the nation will be able to address its skills shortages.
"Framed amidst a challenging business environment, this budget needed to put students at the centre of skills funding decisions. In failing to do so, an opportunity was missed," said Troy Williams, Chief Executive of the Independent Tertiary Education Council Australia (ITECA).
The budget's funding commitments that preference public providers are limiting, as they do not offer students the full range of courses needed to address the skills shortage.
"The taxpayer's investment in skills training should allow students to choose the training organisation that is best able to help them achieve their life and career goals. The budget didn't deliver this ambition," Mr Williams said.
ITECA is currently working with the Australian, state and territory governments to create a student centric skills funding arrangement.
"Students want government to back their decision to study with the provider of their choice. ITECA believes that this is necessary to maximise the impact of the budget's investment in skills and support the growth of Australia's workforce.
Independent RTOs support more than 87% of the 4.3 million students in skills training across the country, including more than half of apprentices and trainees.
