‘Life-Changing’ or ‘Flawed’? Senate Divided on Free-TAFE Bill

Australian Prime Minister Anthony Albanese (R) listens to the leader of the Opposition Liberal Party Peter Dutton speak in the House of Representatives at Parliament House in Canberra, Australia on Oct. 16, 2023. David Gray/AFP via Getty Images

The Albanese government’s Free TAFE bill has cleared the House of Representatives but faces an uncertain fate in the Senate.

Strongly opposed by Opposition Leader Peter Dutton and Deputy Liberal Leader Sussan Ley—who argued, “If you don’t pay for something, you don’t value it”—the bill sparked heated debate at a Senate inquiry on Feb. 7.

Jenny Dodd, Chief Executive of TAFE Directors Australia, supported the legislation, citing her experience across multiple states.

Having worked with TAFE Queensland in collaboration with Aboriginal and Torres Strait Islander communities before serving as CEO of TAS TAFE, she said she has seen firsthand how free TAFE transforms lives and addresses critical skill shortages.

“Free TAFE has been life-changing for many,” Dodd told senators.

“It is developing the skills of many Australians and making a difference to the economies of our states and territories.”

She shared the stories of students whose lives had changed because of the policy.

Annette, a Torres Strait Islander, upskilled in nursing to serve her community while inspiring her children. Karen, a single mother from North Queensland, pursued conservation and secured a job in ecological restoration. Engineering apprentices Max and Michael in Tasmania, and Jack, a 21-year-old from South Australia who entered early childhood education, were also among those who benefited.

TAFE and Private Institutions: The Funding Divide

A key point of contention in the Senate debate was whether free TAFE unfairly excludes private Registered Training Organisations (RTOs).

The BCA argued that prioritising TAFE over private providers distorted competition and weakened training outcomes.

“There are over 4,000 vocational education providers in Australia, yet only 29 public TAFEs. Excluding private and industry-based RTOs from fee-free funding undermines student choice,” said Black.

“Data shows private RTOs achieve higher completion rates and better employment outcomes than TAFEs.”

Senator Karen Grogan challenged this claim, arguing that different providers serve different purposes.

“The figures you’re using compare different cohorts,” she countered.

“It’s hard to compare a three-day course from an RTO with a long-term qualification at TAFE.”

Dodd reinforced TAFE’s critical role in workforce development.

“TAFE is deeply embedded in state and territory economies,” she said.

“One reason fee-free TAFE has succeeded is that courses are tailored to what each region needs. A CEO of a TAFE works with state governments—regardless of political affiliation—to direct resources where they’re needed most.”

Measuring Success: The Completion Debate

Critics of the bill also focused on completion rates, arguing that success should not be measured solely by enrolment numbers.

Wendy Black, executive director of policy at the Business Council of Australia (BCA), raised concerns about the low completion rates for fee-free TAFE students.

The BCA contended that legislating free TAFE without sufficient data on completion rates and employment outcomes was risky.

“We do not believe that hardwiring the policy into legislation is the right approach. Funding decisions should remain flexible within the budget process to adapt to workforce needs,” said Black.

However, Dodd pushed back against the narrow focus on completions.

“Completions are important, and we will never walk away from that. But we are not building ships; we are working with people who have their own career paths,” she argued.

She pointed out that some students enrol in specific units for licensing or occupational requirements and leave when they secure employment, making completion rates an incomplete measure of success.

“Even in apprenticeships, we only see just over 50 percent completion rates,” Dodd said. “And we’ve been running apprenticeships forever. To suggest that completion is the only measure of success ignores the complex realities of vocational education.”

The Future of Fee-Free TAFE

Despite the opposition, supporters of the bill argue that free TAFE has proven its value and should be secured through legislation.

They reject the idea that market-based funding would be more effective, arguing for the public benefits of a strong, government-backed TAFE system.

“TAFE offers more complex, involved training,” she said. “It’s about ensuring students have the wraparound support they need, whether they finish a qualification or transition to a different career path.”

Meanwhile, Liberal Senator Slade Brockman argued that there was a lack of data to prove free TAFE had delivered results.

“It seems to me that this bill is a marketing exercise and not a policy exercise,” he said.

The Senate remains divided, with the bill facing an inquiry before any final decision. Whether free TAFE is locked into law or left at the mercy of shifting government budgets will depend on the coming negotiations.