Landmark National Skills Agreement between Federal and NSW state governments

Media Release from the NSW Minister for Skills, TAFE and Tertiary Education

MEDIA RELEASE | 17 October 2023

The Federal and NSW state governments have signed a landmark agreement that will deliver billions of dollars to build the skills and prosperity of NSW.

The landmark 5-year National Skills Agreement (NSA) – which will take effect from January next year – was developed under principles agreed by National Cabinet and will embed national cooperation and strategic investment in the NSW vocational education and training sector.

NSW is set to benefit from over $3.81 billion of investment from the Albanese Government, supporting investment by the Minns Government to expand and transform access to the VET sector.

The 5-year agreement places TAFE at the heart of the VET sector, providing the funding certainty required to support quality training and implement reforms to address critical skills needs. 

The NSA will provide for $1.055 billion of additional funding to NSW, enabling NSW to complete significant reform to the skills and training sector. This will support the Minns Government’s commitments to investing and rebuilding TAFE NSW and the broader skills sector. 

This includes investing in TAFE Centres of Excellence, boosting foundation skills in language, literacy, numeracy and digital literacy and Closing the Gap in educational outcomes for Aboriginal and Torres Strait Islander people.

In an historic first, a new national stewardship model will coordinate strategic investment in skills across the economy and support delivery of skills needed in national priority areas, as well as providing states and territories with flexibility to meet local industry skills needs.

Nationally, the $12.6 billion investment by the Commonwealth includes an extra $2.4 billion in flexible funding to support state and territory skills sectors with capacity to deliver skills for critical and emerging industries. Priorities include:

  • clean energy and Net Zero transformation of the economy.

  • Australia’s sovereign capability, including advanced manufacturing skills, national security, food security and construction.

  • care and support services.

  • ensuring Australia’s digital and technology capability

This new investment is on top of $414 million already committed nationally for the delivery of 300,000 fee-free TAFE places from 2024.

Sara Johnston