The OECD’s Education at a Glance 2026 country note shows that Australia’s education system is characterised by relatively high levels of tertiary education attainment. In 2025, more than half (54%) of Australians aged 25–64 held a tertiary qualification, well above the OECD average of 43 percent.
One particularly relevant finding is the declining proportion of younger Australians whose highest qualification is what the OECD categorises as an upper secondary vocational qualification (ie most Certificate III qualifications in Australia and lower AQF level VET qualifications). In 2025, this was the highest level of attainment for 15 percent of Australians aged 55–64, but only 12 percent of those aged 25–34. The same trend is evident in almost all OECD countries as more young people gain higher level tertiary qualifications.
There are also encouraging findings on educational participation in the OECD analysis. The proportion of Australian 25–34-year-olds without an upper secondary qualification fell from 12 percent in 2015 to seven percent in 2025.
Among 18–24-year-olds, 10 percent were neither employed nor in education or training in 2025. While this is below the OECD average of 13 percent these young people warrant ongoing attention and support given recent UK research showing the lifelong impact that a lack of tertiary education and/or full-time work can have on a young person’s future life chances. VET therefore has an important role in offering all learners but particularly this cohort accessible entry-level programs, foundation skills, apprenticeships and traineeships, and flexible pathways that reconnect learners who have not succeeded in conventional school settings.
The OECD data also underlines the continuing economic value attached to higher levels of education. Australian full-time, full-year workers without a tertiary qualification earned 13 percent less than the national average, while those who did not complete upper secondary education earned 19 percent less.
Perhaps the most striking finding for the sector concerns investment in vocational education delivered at upper secondary level. Australia spent US $11,317 per student in vocational programs in 2023, compared with US $15,823 in general upper secondary schooling. Across the OECD, the pattern was reversed: average spending was US $13,901 for vocational students and US $12,421 for students in general senior secondary programs.
International comparisons need to be treated cautiously because countries organise and classify vocational education differently, but the size and direction of the gap appear to be significant. Practical vocational delivery often requires smaller groups, specialised equipment, suitable facilities, workplace coordination and teachers with current industry expertise, all of which can carry additional costs.
