The Victorian Skills Plan for 2025 into 2026 positions VET as a central driver of economic growth, workforce participation and social inclusion. For VET providers, the Plan reinforces that demand for skills is not slowing: Victoria expects around 1.5 million new workers over the next decade, with almost half of these roles aligned to VET-level qualifications.
Government-funded training remains a major lever, with more than 250,000 VET students funded in 2024 and continued investment through Skills First and Free TAFE.
A strong message for providers is the continued importance of priority sectors like advanced manufacturing and defence, agribusiness, the clean economy, construction, digital technologies, and health care and social assistance.
Many of the highest-demand occupations, such as carers, electricians, plumbers, education aides and technicians, sit squarely within Certificate III to Diploma pathways. For VET providers, this underscores the need to keep delivery tightly linked to current industry practice, and to invest in facilities, staff capability and employer partnerships.
The Plan has a strong focus on the Victorian TAFE Network but also focuses on the role of adult community education and pre-accredited training as part of a connected skills system. Learn Local providers and other community-based organisations are recognised as critical for building foundation literacy, numeracy, digital and employability skills, particularly for learners furthest from the labour market. The Plan also focusses on quality private training providers developing and delivering “specific training programs, including niche skills and programs”.
For all Victorian providers, this plan reinforces the value of clear learner pathways, from pre-accredited learning into formal qualifications, and collaboration across providers to improve transitions, retention and completions.
Rapid technological change, particularly the adoption of artificial intelligence, is another defining theme. The Plan makes clear that almost all workers now need foundation digital skills, many require industry-specific digital capability, and a smaller but growing cohort need advanced digital skills. The Victorian government understands the potential of AI, framing it as less a threat to VET-level jobs and more as a tool that augments work, especially in trades, care and technical roles. It is expanding the Digital Jobs Program “to offer specialist digital skills training for construction and advanced manufacturing businesses, including AI and machine learning.”
The Plan also notes that Victoria is “an emerging data centre hub in the Asia-Pacific region” and that this will deliver job opportunities in:
- Construction jobs – to build the data centres
- Trades and technical jobs – to maintain the data centre infrastructure, and
- Business operations and support – to set-up and maintain the equipment in the centres and support their operation.
As the VET sector responds to these technological shifts and opportunities, RTOs need to embed digital and AI-related skills into existing qualifications, modernise teaching practice and look at ways to use technology to improve assessment, recognition of prior learning and learner support.
While government continues to fund core training, industry will need to co-invest in workforce development, particularly for sector-specific and emerging skills as their businesses and sectors adapt and change. This will create opportunities for fee-for-service delivery, short courses, micro-credentials and customised programs developed in partnership with employers.
Overall, the Victorian Skills Plan sends a clear message to the VET sector: in a growing and changing economy, growth in the VET sector will favour providers that are agile, industry-embedded and capable of supporting learners across their full career lifecycle (or which partner with other organisations to do so). RTOs will need to teach more than technical skills, embedding digital capability, critical thinking and adaptability into everyday delivery.
For VET providers willing to evolve, the Plan outlines not just expectations, but a roadmap for relevance and resilience over the next decade .
What the Victorian Skills Plan means for RTO strategy?
As RTOs look at their strategy for 2026 and beyond – the latest Victorian Skills Plan suggests they should adopt the following approaches:
- Prioritise growth sectors:Align scope, delivery models and marketing to high-demand areas such as care, construction, clean energy, digital and advanced manufacturing – where VET pathways dominate workforce demand.
- Embed digital and AI capability:Where possible integrate digital skills into existing qualifications rather than treating them as add-ons; and invest in staff capability to confidently explore AI use in teaching, assessment, RPL and learner support.
- Strengthen employer partnerships:Shift from transactional engagement to co-design of training, fee-for-service programs and workforce solutions, particularly where industry is expected to co-invest in skills.
- Build flexible pathways:Create clearer transitions from pre-accredited learning into qualifications, and from Certificates into higher-level VET or university pathways, to support increased participation and stronger completions.
Be faster and more responsive: Use skill sets, micro-credentials and be prepared for training package updates to ensure your RTO can respond quickly to emerging needs in priority sectors and regional labour markets.
