Students and national priorities the focus of the budget – comment by CEO Jenny Dodd

Last week was a very busy time in Canberra as the federal government delivered its budget. For the tertiary education sector, both students and national priorities were central, with significant outcomes for TDA members and students.

National priorities dominated the skills and training budget announcements. There is financial commitment for skilling the clean energy workforce, including $30 million for the teacher, trainer and assessor workforce, and there is funding to address housing supply through skilling the construction workforce.

The other national priority that received an allocation was assisting women to achieve higher paying careers through VET skills and qualifications. $55.6 million was allocated for supporting women to benefit from a Future Made in Australia. This was a great outcome following advocacy from many groups. See comments later in this newsletter from Kit McMahon of the Women in Adult and Vocational Education (WAVE).

The big winners in the higher education budget were students. These were important responses to the Universities Accord panel recommendations. Many of these measures had been announced in these last couple of weeks, but when seen in one summary they are significant.

Firstly, there is the lowering of indexation of the Higher Education Loan Program debts. This includes all TDA members where our students have one or more loans, including higher education loans, VET student loans, and Australian Apprenticeship support loans.

Secondly, there is financial support for practical placements for nursing, teaching and social work students. For TAFE this will include Diploma of nursing students. It is expected that these payments will be means tested, so the detail is yet to flow, nonetheless it is an important recognition of the cost to undertake these practical courses. For TAFE nursing students, who are generally slightly more mature and sometimes from underrepresented cohorts, this will be very welcome.

Importantly in the response to the Universities Accord panel recommendations there are plans for a new managed growth funding system for Commonwealth Supported Places (CSPs). The Australian Universities Accord Budget summary (Australian Universities Accord: 2024-25 Budget Summary – Department of Education, Australian Government) states, “The Government has committed to developing a new Managed Growth Funding System for Commonwealth Supported Places to meet student demand, maintain sustainable growth and increase opportunity for people from underrepresented backgrounds.” Where TAFE fits within this new funding system for CSPs is yet to be worked out.

Additionally, there is a focus on needs-based funding. Needs-based funding contributions will be directed to those students most in need of additional support. This will include underrepresented groups and those from the regions.

The other important announcement was the allocation of $27.7million for tertiary collaboration. This will include exploring ways to improve both credit recognition and regulatory approaches for dual sector TAFEs and universities. Within this area is the announcement made by Minister O’Connor at TDA Convention 2024 where ASQA will delegate self-accreditation to some TAFEs (which I mentioned in my piece last week).

An Implementation Advisory Committee has been formed. The Implementation Advisory Committee will consider the managed growth funding system, matters of harmonisation, and the proposed formation of the Australian Tertiary Education Commission. I am very pleased to have been invited to provide the vocational education and training voice on the Implementation Advisory Committee. This is a big task and I look forward to presenting the TAFE perspective. First meeting is next week so it is up and running.