The federal government recently released its proposed budget for the 2025–2026 financial year. Creating a federal budget involves deciding how public funds will be spent and identifying the sources of revenue to support that spending.

The handed down budget outlines the current government’s priorities, but most of the initiatives announced still need approval from the federal parliament before they can be implemented. With a federal election now set for Saturday 3 May 2025, the government has entered ‘caretaker mode’. This means it won’t be making any major decisions or passing new laws until after the election.

We’ll need to wait and see the results of the election to know who will form the next parliament, and whether the announced budget measures will go ahead. A new government could revise some of the proposed funding.

VET investments proposed in the Budget

We are pleased to see that the proposed Australian Government’s 2025–26 federal budget introduces several initiatives to enhance vocational education and training (VET) and support employment pathways for young Australians.

Here are some key initiatives being funded that align to the work of the LLENs across the state.

Increased Funding for Skills and Workforce Development

The government has allocated $2.7 billion in 2025–26 to support state skills and workforce development services. This includes $2.5 billion through the National Skills Agreement, aimed at strengthening the VET system and addressing skill shortages across various industries.

Additional Fee-Free TAFE and VET Places

Building upon previous commitments, the government is providing an additional $86.4 million for states and territories to deliver 20,000 more fee-free TAFE and VET places over two years from January 2025. This initiative includes approximately 5,000 pre-apprenticeship places, specifically targeting the construction industry to boost the supply of skilled workers.

Regulatory Support for the VET Sector

The budget includes measures to provide additional regulatory support to safeguard the integrity of the VET sector. These measures aim to ensure that vocational education providers maintain high standards, thereby enhancing the quality of education and training received by students.

Support for Apprenticeships

In response to challenges faced by apprentices, the government announced an initial response to the Strategic Review of the Australian Apprenticeship Incentive System in January 2025. This includes measures to support apprentices in completing their training and transitioning into the workforce. 

These initiatives reflect the government’s commitment to strengthening vocational education and creating robust employment pathways for young Australians.

We support these measures and believe it will contribute to enhancing the work that our Network does.