Funding shortfall threatens skills sector, says NSW Govt

TAFE NSW is facing a $200 million funding shortfall that could lead to closures, course cuts and job losses, according to the state’s new Labor government.

A joint statement from the Treasurer and the Minister for Skills, TAFE and Tertiary Education suggests that the former Liberal government neglected to provide adequate funding as it had “never valued vocational education”.

The statement says that funding was cut from $1.996 billion in 2022–23 to $1.801 billion in 2023–24, a shortfall of $196 million — a move it asserts was a deliberate decision that locks the cuts into the Budget’s forward estimates payments.

The NSW Government says TAFE NSW has advised that operating budgets had required last-minute adjustments of $200 million for the last four years, in order to maintain delivery of services.

Negotiations between the NSW Government and the Commonwealth Government for a new National Skills Agreement are due to commence shortly and any further funding decisions will be made in conjunction with this process.

In addition, the NSW Government has shown its support for a strong vocational education system that delivers skills and training in NSW by committing to the following:

• A comprehensive review of the vocational education system to determine the full impact of Coalition cuts and establish a path to rebuilding TAFE;
• Keeping TAFE campuses in public hands;
• Hiring an additional 1000 apprentices and trainees across the NSW Government by 2026;
• Guaranteeing a minimum 70% of the Skills Budget will go to TAFE; and
• Addressing the skills gap through three manufacturing centres of excellence — in Western Sydney, the Hunter and the Illawarra.
   

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