A skilled workforce is fundamental to Australia’s future. As a pillar of our post-school education system, the vocational education and training (VET) system enables people to develop and maintain the skills needed to participate effectively in society and the economy. Millions of Australians with diverse educational needs, capabilities and aspirations have obtained or honed their workplace skills through Australia’s formal (nationally accredited) VET system.

During this review there have been major skills policy developments. In November 2019, the COAG Skills Council released a Draft VET Reform Roadmap which set out three priority areas for improvement — the relevance, quality and accessibility of the VET system. In response to the 2019 Joyce Review, the Australian Government established a National Skills Commission (NSC) and a National Careers Institute (NCI). And in August 2020, all governments signed a Heads of Agreement for Skills Reform, setting out high-level directions for a new National Skills Agreement to replace the NASWD. The Commission has taken this evolving policy landscape into account in its assessment and recommendations.

Key points:

• This review has not found evidence of a vocational education and training (VET) system in crisis. The recommendations address some of the system’s acknowledged weaknesses and should build on its strengths to lift participation and improve the quality of training.
• The National Agreement for Skills and Workforce Development is overdue for replacement.
• A new intergovernmental agreement should be principles‑based, modular (to retain flexibility and currency) and reviewed every five years.
• Governments should continue to support the development of a more efficient and competitive VET market through informed user choice and a focus on quality.