The Australian Government announced in the 2021–22 Budget a commitment to develop the Indigenous Skills and Employment Program (ISEP), a new Indigenous Employment Program, to replace the Vocational Training and Employment Centres (VTEC), Tailored Assistance Employment Grants (TAEG) (including Employment, Cadets and School-based Traineeships) and Employment Parity Initiative (EPI), to commence from 1 July 2022.

The ISEP will contribute to closing the gap between the Indigenous and non-Indigenous employment rate by supporting pathways to employment for Indigenous Australians, through flexible and locally informed investment.

The new program will increase economic opportunities for Indigenous Australians and drive actions that connect Indigenous Australians to jobs, targeted skills acquisition and career advancement opportunities. ISEP will foster partnerships and co-investment with key stakeholders at the local level, in particular with providers, state, territory and local government and employers, to provide seamless, complementary services to support Indigenous Australians in gaining sustainable employment outcomes.