Government expenditure on Vocational Education and Training rose 55.8% over the past five years, despite a dip in funding over the past year, according to a new report.
The National Centre for Vocational Education Research’s review of 2024 VET funding indicated that Australian Government employer assistance expenditure rose from $1.3 billion to $3.8 billion between 2019 and 2024, representing one of the largest drivers of the funding increase – representing just over 15% of total spending for VET in 2024. Employer assistance spending rose during the pandemic and had continued to be phased out over time.
Government expenditure on VET in 2024 was $10 billion, 8.2% lower than the year before, NCVER’s Managing Director John King said.
“The main contributor to this decrease is the drop in employer assistance expenditure of $1.7 billion (52.9%) which is expected as the pandemic support initiatives run their course. All other areas of VET expenditure increased during this period,” Mr King said.
VET spending continues to be highest in areas of national priority, including housing and care, including:
- $821.9 million spent on community services (up 17.3%)
- $443.8 million on construction and plumbing (up 9.2%)
- $374.8 million on health (up 23.6%).
States and Territories contributed 50.7% of funds in 2024, up 7%, compared to a 19.6% decline in Commonwealth Government contributions.
The majority of funds (67.2%) are spent on VET delivery, followed by 15.4% on employer assistance and 9.2% on systems, administration and governance.
It is interesting that the VET budget allocates well over twice as much on admin and governance ($914.5m in 2024) as it provides for student support ($387.5m).