The Albanese and Minns Labor Governments have signed a $560 million agreement to secure Free TAFE in New South Wales, providing greater access to vocational education and training while helping address critical skills shortages across the state.
Under the five-year agreement, approximately 160,000 Free TAFE and training places will be delivered across NSW from 2027. Federal Minister for Skills and Training Andrew Giles and NSW Minister for Skills, TAFE and Tertiary Education Steve Whan signed the agreement, establishing a longer-term framework for fee-free vocational training.
The partnership aims to provide greater certainty for students, training providers and the vocational education sector. It builds on previous time-limited arrangements by establishing sustained support for Free TAFE and enabling longer-term planning across the state’s training system.
The agreement is the first of its kind to be signed since the Australian Parliament passed the Free TAFE Act, fulfilling the Albanese Government’s commitment to make Free TAFE an enduring part of Australia’s skills system.
Training for Critical Industries
Free TAFE will focus on qualifications linked to occupations in areas of national and state priority, including housing construction, clean energy, digital technology and essential care services. Removing course fees is intended to make vocational education more accessible to people considering further training, changing careers or entering industries experiencing workforce shortages.
The program will also prioritise opportunities for people who have traditionally been under-represented in the economy. By helping reduce financial barriers to study, the governments aim to broaden participation in vocational education while developing the skilled workforce needed to support economic growth and essential services.
The agreement complements the NSW Government’s existing fee-free training commitments and its broader investment in skills development.
Ministers Welcome Long-Term Commitment
Federal Minister for Skills and Training Andrew Giles said Free TAFE was helping Australians gain qualifications for jobs needed across the economy, including construction, agriculture, nursing, aged care, cybersecurity and early childhood education.
Giles welcomed NSW as the first state or territory to sign the new agreement, saying the partnership would enable more people across the state to benefit from fee-free vocational education and training.
NSW Minister for Skills, TAFE and Tertiary Education Steve Whan described the agreement as an important milestone that would provide long-term stability for the state’s vocational education system while delivering cost-of-living relief for students.
Whan said the agreement was supported by the Minns Government’s $3.46 billion investment in skills, training and TAFE. He highlighted the role of vocational education in creating pathways to secure employment and addressing workforce needs in housing, clean energy and essential services.
Supporting Students and Workforce Development
By committing funding over five years, the agreement is designed to give prospective students greater confidence when considering vocational study and career transitions. It also aims to help employers and training providers respond to demand for qualified workers in key industries.
The governments say the initiative will contribute to building more homes, supporting the clean energy transition and strengthening essential services throughout New South Wales.
With around 160,000 Free TAFE and training places planned from 2027, the agreement represents a significant commitment to expanding access to vocational education and preparing more workers for jobs critical to the state’s future.
