The centerpiece of Labor’s 2024 budget was the promise of an ‘Australian-made future’, with free TAFE places to bring back the housing sector by addressing key skills shortages.
But industry experts have branded the initiative a failure, with courses poorly run and students leaving full-time university to become paid apprentices to earn a living.
Gary Workman, chief executive of Global Apprenticeship Network Australia, told Daily Mail Australia that the free TAFE places on offer are not always practical for young adults.
“We’re a little frustrated by the lack of consistency,” he said.
“In many cases there doesn’t seem to be much correlation between skills shortages and TAFE being free.”
The centerpiece of Labor’s 2024 budget was the promise of a ‘Made in Australia Future’, complete with free TAFE places to revive the housing sector and counter industry-wide skills shortages.
The Government boasted in the Budget of 20,000 additional places in free TAFE training programs to boost the number of trades in construction and housing
Mr Workman admitted: “It’s all about skills shortages at the moment.”
But he questioned why the government “appears to be focusing much of our free TAFE on university qualifications (rather than) linking it to work and giving young people the opportunity to get into employment”.
The government boasted in the budget of an extra 20,000 places on free TAFE training programs to boost numbers in construction and housing trades.
The $90 million national package is being touted as a budget cash injection that will help Labor deliver on its promise to build 1.2 million more homes to keep up with Australia’s growing population of around 27. millions.
An additional 15,000 free TAFE and VET places will also be available over a two-year period from 1 January.
But the problem the industry has faced is that many of these courses are specifically for full-time enrollment and do not go hand in hand with on-the-job training.
It would be more beneficial, Workman said, if the government worked with aspiring tradespeople and business owners, offering free apprenticeships and reducing the financial burden on businesses of taking on apprentices.
Workman said targeted migration programs, similar to student visas for university studies, could help overcome skills shortages in critical industries.
Workman acknowledged that some employers can be “a little lazy” when it comes to apprenticeship opportunities for young people, but called on the government to take additional steps to alleviate skills shortages.
This includes linking free opportunities to internships and apprenticeships, incentivising businesses to hire young people and work towards a qualification.
In turn, students would receive a stronger combination of theoretical lessons and on-the-job experience, allowing them to gain greater mastery of the tools to improve construction outcomes.
“They don’t always want to invest the four years it takes to get someone the skills they want,” he said.
Currently in New South Wales, the 20 free courses offered in the construction sector are delivered on a full-time course load.
The government has also committed $26.4 million alongside states and territories to create 5,000 new places for pre-apprenticeship programmes.
Workman said targeted migration programs, similar to student visas for university studies, could help overcome skills shortages in critical industries.
“We allow international students to come to Australia to study at university and the vast majority stay to join the workforce,” he said.
“But we don’t have the same path in terms of learning and internships, and it’s something we should keep in mind amid this skills shortage.”
Workman acknowledged that some employers can be “a little lazy” when it comes to learning opportunities.
Treasurer Jim Chalmers’ budget addressed this suggestion with a $1.8 million commitment to streamline skills assessments for immigrants from countries with qualifications comparable to Australia’s.
This will benefit up to 1,900 migrants who want to work in Australia’s construction industry.
Troy Williams, chief executive of the Independent Tertiary Education Council of Australia (ITECA), said while the budget commitments “present opportunities for workforce development, they do not fully support students with independent skills training providers”.
“The government missed an opportunity to amplify its impact on vocational training by not fully supporting independent providers,” he said.
The government has also committed $26.4 million alongside states and territories to create 5,000 new places for pre-apprenticeship programmes.
These initiatives build on others already underway. As of December 31, 2023, some 355,000 students had received support through the free TAFE programme.
Minister for Skills and Training Brendan O’Connor described the latest round of funding as a “great opportunity for people to get a trade”.
And Housing Minister Julie Collins said the initiatives are “the best way to address Australia’s housing challenges”.
‘More homes mean more affordable options for everyone, whether they’re buying, renting or need a safe space to spend the night.
‘But to build more homes we need more businesses, and that is what this announcement will achieve. “It’s just one of the ways we are working across government to build the homes Australia needs.”