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VET Reform Update 2024

The Skills and Workforce Ministerial Council convened on Friday, 24 May 2024, bringing significant developments and future-focused initiatives to the fore. The meeting, held in Sydney, saw federal, state, and territory skills ministers deliberating on pivotal issues and innovative strategies poised to shape the future of Australia’s Vocational Education and Training (VET) sector. Here’s what private RTOs need to know and how they can navigate these changes effectively.

Key Highlights and Impact on Private RTOs

1. National Skills Plan

One of the paramount outcomes of this meeting was the discussion around Australia’s inaugural National Skills Plan. This plan is a cornerstone of the National Skills Agreement, designed to streamline investments in skills development and enhance economic and social benefits through the VET system.

Impact: The National Skills Plan will necessitate alignment across various RTOs to ensure that their training programs are in sync with national and regional priorities. This can be an opportunity for private RTOs to demonstrate their flexibility and responsiveness to industry needs.

Preparation: Private RTOs should begin evaluating their current training offerings and identify areas where they can adapt to align with the forthcoming National Skills Plan. Establishing channels for continuous dialogue with policymakers and industry partners will be essential to stay updated and responsive to evolving priorities.

2. Fee-Free TAFE and TAFE Centres of Excellence

The continued success of the Fee-Free TAFE initiative, which benefited 355,000 Australians in 2023, was acknowledged. Additionally, the launch of the first TAFE Centre of Excellence in the ACT, focusing on Electric Vehicles, marks a significant stride towards specialised and high-quality vocational training.

Impact: While this initiative increases access to vocational training, it also presents a challenge for private RTOs as funding and enrolments may shift towards TAFEs.

Suggestions for Private RTOs:

  • Differentiate Your Offerings: Highlight unique courses, flexible delivery modes, and specialised training that TAFEs may not offer.
  • Enhance Value Proposition: Focus on quality, personalised training experiences, and strong industry connections.
  • Explore Partnerships: Collaborate with TAFEs on joint initiatives or offer complementary programs that add value to TAFE qualifications.

3. Quality Reforms and Revised Standards for RTOs

The ministers discussed substantial progress on revising the Standards for Registered Training Organisations (RTOs), aiming to uplift quality and integrity across the sector. These standards will come into full regulatory effect from 1 July 2025.

Impact: All RTOs will need to update their policies, procedures, and documentation to align with the new Standards. The Australian Skills Quality Authority (ASQA) has already started changing its auditing processes, which means RTOs need to be well-prepared.


  • Stay Informed: Ensure your team is up-to-date with the new standards and ASQA’s auditing changes.
  • Update Documentation: Begin revising policies, procedures, and documentation to comply with the new standards.
  • Training and Development: Invest in training for staff to ensure they understand and can implement the new requirements effectively.

4. VET Workforce Blueprint

The draft VET Workforce Blueprint emphasises understanding, growing, retaining, and developing a sustainable VET workforce. This blueprint addresses trainer shortages by allowing Trainers and Assessors to work under supervision, which could alleviate some pressure.

Impact: This will have both positive and negative impacts. On the positive side, it will help address trainer shortages. On the negative side, it will require updates to policies and procedures within RTOs.


  • Policy Updates: Revise policies to include new requirements for Trainers and Assessors working under supervision.
  • Support and Retain Staff: Focus on professional development and support for your existing workforce to retain talent and ensure high-quality training delivery.

5. Strengthening Connections between VET and Higher Education

A notable discussion point was the Australian Universities Accord, aimed at creating a cohesive and connected system between VET and higher education sectors. This approach seeks to provide students with seamless pathways to acquire skills that are highly valued by the industry and economy.

Impact: This presents an excellent opportunity for RTOs to collaborate with higher education institutions, especially considering the government’s stance on International Student Visas and the pivot towards the domestic market.


  • Build Partnerships: Develop relationships with higher education providers to create clear pathways for students.
  • Focus on Domestic Market: Adapt marketing strategies to attract domestic students and highlight the benefits of integrated education pathways.


The communique from the Skills and Workforce Ministerial Council highlights a transformative period for the VET sector. As these changes unfold, it is imperative for private RTOs to remain proactive and adaptive. By aligning with the National Skills Plan, embracing quality reforms, and preparing for the VET Workforce Blueprint, private RTOs can ensure they are well-positioned to contribute to a robust and future-ready workforce.

Stay tuned to our blog and social channels for more updates and insights on navigating these changes. Together, we can build a vibrant and resilient VET sector that meets the needs of our economy and society.

For further details, read the full communique [here].

Vivacity Coaching and Consulting is committed to helping RTOs navigate these changes with ease. Contact us for expert guidance and support in aligning with the latest VET sector developments.