The increasing priority governments are placing on VET and particularly VET delivery and student support, is shown in the NCVER’s Government funding of VET 2024 report. It shows that between 2019 and 2024 government expenditure on VET increased by 56% to $10 billion.
The largest increase in government funding was Australian government incentives to employers of apprentices and trainees during the COVID-19 pandemic, although these subsidies are now being wound back.
State and territory governments provided 50.7% of all VET funding ($5.02B) in 2024. This was a 35% increase on the amount of funding they contributed in 2019 and a further 7% increase on 2023 funding levels.
Two-thirds of the funding provided by governments ($6.7B) is used to support VET delivery. Employer incentives received the next highest allocation ($1.5B), followed by:
- Systems and governance $914m
- Capital expenditure $439m, and
- Student support $388m.
Funding for student support increased at the greatest rate from both 2019 (+160%) and 2023 (+122%) reflecting the growing priority governments are placing on assisting students during their studies with academic and non-academic support.
The financial data also shows the level of government expenditure on VET delivery and capital by provider type, and in 2024:
- TAFE and other public providers received $5.3B (74%)
- Private providers $1.3B (19%)
- Other providers/organisations $282m (4%), and
- A further $220m (3%) was ‘not attributable’ to any provider type.
The report also examines funding by AQF level and in 2024, compared with 2023, “government expenditure on:
- diploma or higher level programs increased by $114.7 million (21.2%) to $655.0 million
- certificate IV programs increased by $47.7 million (6.5%) to $778.5 million
- certificate III programs increased by $153.7 million (7.9%) to $2.1 billion
- certificate I,II and other programs increased overall by $13.3 million (2.1%) to $634.5 million.”
