1 November, 2021

Landmark VET reforms to drive our skills-led economic future

A fundamental overhaul of Australia’s vocational education and training (VET) system has been agreed to by the Morrison Government and states and territories. The reforms are an important achievement and will improve the performance, efficiency, transparency and confidence in the VET sector, ensuring Australians can access high quality and relevant training and employers can access the skilled workers they need.
The new Industry Clusters model—as groups of aligned industries—will replace the 67 Industry Reference Committees and six Skills Service Organisations and are expected to be fully operational by 1 January 2023. The reforms will ensure courses and qualifications in the sector are driven by and better meet the needs of industry, as well as students.
Training package approval processes will also change, with an independent assurance function to replace the Australian Industry and Skills Committee by 1 January 2023.
The Morrison Government is investing $292.5 million over the next four years to support the reforms—building on the record $6.4 billion investment made by the Morrison Government in skills and training this financial year.
Minister for Employment, Workforce, Skills, Small and Family Business, Stuart Robert, said the reforms will drive system improvements, ensure qualifications are updated faster so they meet the needs of industry and help students upskill or reskill for new and emerging jobs.
‘As Australia’s economy roars back we need a skills and training system that is well positioned to meet our evolving workforce needs into the future,’ Minister Robert said.
‘Australia’s economic future relies on a VET system that works for students and employers, which is why industry engagement is so important as part of our skills-led recovery,’
‘The new Industry Clusters will strengthen employer leadership and engagement, giving industry a broader, more strategic role ensuring Australia’s VET system addresses skills and workforce challenges across the economy, including labour demands, as we reopen strongly.’
‘This is a significant milestone as we work constructively with states and territories to complete the transformation of the VET system and progress further reforms.’
More details can be found at: www.dese.gov.au/skills-reform
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