The Productivity Commission's interim report confirms what universities have long known - they are central to building the skilled workforce Australia needs, with many of the report's recommendations echoing solutions put forward by Universities Australia.
UA's Chief Executive Officer Luke Sheehy said the report's recommendations on credit transfer, recognition of prior learning and closer collaboration across the tertiary system would make it easier for Australians to get the skills they need, when they need them.
"Ninety per cent of new jobs in the coming years will require post-secondary qualifications," Mr Sheehy said.
"The only way we will meet that challenge is if people can move more easily between different types of learning and back into education throughout their working lives.
"Universities educate more than 1.5 million students every year - from nurses, teachers and engineers to climate scientists, IT specialists and entrepreneurs. We're already training the workforce Australia relies on, and we're ready to go further – partnering with government, industry, and the TAFE and vocational sector to open more pathways, integrate microcredentials and deliver training for people changing careers or returning to work."
Mr Sheehy said many of Australia's universities - including dual-sector universities delivering both vocational and higher education - are already showing how integrated pathways can work in practice.
"Our dual-sector members are living examples of how seamless movement between VET and higher education benefits students and employers. Their experience will be vital in building a truly connected tertiary system," he said.
"We agree that a national system for recognising prior learning and transferring credit is essential to give Australians more options, greater mobility and less red tape.
"Education should be a lifelong right, not a one-off experience, and that pathways between VET and higher education must be open, visible and easy to navigate."
Mr Sheehy said universities also welcomed the report's focus on lifelong learning and targeted training incentives for small and medium businesses.
"With the right policy settings, we can do even more - partnering with small and medium businesses, supporting innovation and helping workers adapt to technological change. This is exactly the kind of collaboration we've been calling for.
"We look forward to engaging further in the consultation process ahead of the Commission's final report," he said.