Housing Body Warns Fee-Free TAFE Program Could Fail Without Clear Data

A carpenter is seen working on a house renovation in Brisbane, Australia, June 4, 2020. AAP Image/Dan Peled

The Housing Industry Association (HIA) has raised concerns about the government’s Fee-Free TAFE initiative, warning that without clear data on its effectiveness, the program risks failing to reach its full potential.

The association has urged the government to reassess the program, calling for a comprehensive evaluation before it becomes law.

“Without data on what’s working, the program could fail,” said HIA Executive Director Geordan Murray.

The association is also calling for mandatory reporting and data collection to ensure the program can be objectively assessed and fine-tuned to meet Australia’s evolving workforce needs.

“The current Fee-Free TAFE initiative needs to be thoroughly evaluated before it’s formalised. If we don’t know what’s working, how can we improve it?” Murray said.

Fairness and Access for All Providers

Another key concern for the HIA is fairness within the vocational education system. HIA has long advocated for private and industry-based training providers to receive equal funding access alongside public TAFEs.

The association argues that excluding private providers could limit student choice and leave gaps in training opportunities, especially in industries like construction.

“Australia’s vocational education system is built on diversity, excluding private providers not only limits student choice but also risks leaving gaps in the training landscape,” Murray said.

More Needed to Address Skills Crisis

While the government’s target of 100,000 fee-free TAFE places has been met with some optimism, HIA is questioning whether it goes far enough.

With the skills crisis in Australia growing, the association believes more needs to be done, especially in high-demand sectors like construction.

“This number might sound impressive, but in the context of our skills crisis, it’s just not enough. We need to think bigger, with sub-targets for key industries where demand is overwhelming,” Murray said.

HIA adds that financial challenges extend beyond course fees, citing barriers such as travel costs and the need for tools and equipment, all of which should be addressed to ensure greater participation in training.

Opposition Criticises Program’s Success Rate

The Opposition has also voiced concerns about the effectiveness of the program, citing a high dropout rate among students.

Deputy Opposition Leader Sussan Ley pointed to a briefing from the minister for skills and training, Andrew Giles, revealing a 13 percent dropout rate in the fee-free programs.

“I’m not anti-TAFE, but we value the fact that we’ve got private providers who do an incredible job and who have much higher pass rates than the ones that we’ve been able to allude,” said Ley, who is also the shadow minister for skills and training.

Government Defends the Program’s Impact

Despite the criticisms, the Labor government stands by the Fee-Free TAFE initiative, citing impressive enrolment numbers.

By June 2024, over 508,000 Australians had enrolled in high-demand fields, including care, tech, and construction.

The program has also seen strong participation from priority groups such as young people, job seekers, Aboriginal Australians, and those from regional and remote areas.

Giles has praised the program’s success, calling it “a life changer” for students and vital in helping Australians secure meaningful work.

Greens Support Fee-free TAFE Expansion

The Australian Greens have strongly backed the initiative, saying it has the potential to create equal opportunities for all Australians.

They have also called for the full funding of both TAFE and university education.

“For those who want to study, it’s our job to make that possible. That is why the Greens will fully fund fee-free TAFE and university,” said a statement.