With the construction industry currently experiencing severe workforce shortages, debate is raging on the best way to encourage more apprentices to enter the construction industry.

For the Albanese government, Free TAFE is seen as a crucial way to attract young people to the construction industry.

The government has identified construction as a priority of the free TAFE scheme, which aims to remove financial barriers to study.

In total, the government has invested $1.5 billion in the Free TAFE scheme. It has also pledged funding for another 20,000 free TAFE and VET places in the 2024-25 Federal budget.

However, opinion is divided over the government’s plan to enshrine the initiative in legislation.
So, should free TAFE be legislated?

What are the issues?

While the Free TAFE program has been praised for increasing enrolments, critics highlight its shortcomings in boosting apprenticeship completions.

Master Builders Australia argues that legislating Free TAFE is unnecessary, as the policy has not significantly increased apprenticeship numbers.

“We have not seen the free TAFE policy bring more people into building and construction apprenticeships; rather, it has simply reshuffled the deck.” Said Master Builders Australia chief executive Denita Wawn.

A key concern is that subsidising only TAFE courses pushes students toward TAFE, even when other programs might better align with their career aspiration. Currently, around 80% of VET students study at non-TAFE institutions.

The Business Council Of Australia says it shares the government’s commitment to reducing financial barriers to study and supports the intent of free TAFE. However, it says more data on the effectiveness of the initiative is needed before it is enshrined in legislation.

“The BCA has heard from stakeholders from the (vocational education and training) sector that completion rates for fee-free places are around 20 per cent lower than the average VET completion rate of almost 50 per cent,” Business Council Of Australia chief executive Bran Black said in an interview with The Australian.

“It is vital we understand the study and employment outcomes of fee-free TAFE students to ascertain the program’s value, where it is most effective and how to overcome any shortcomings.”

The Housing Industry Association says the government’s reporting of data on the scheme has been insufficient.

There are also concerns the policy may disadvantage those in rural or remote areas, where there are no TAFEs located.

What is the government’s response?

According to the government, there has not been enough time to fully understand the impacts of the initiative on the construction industry. It says there is a time lag between the start of apprenticeships and their completion. It says there have been 39,200 enrolments in the construction sector under the free TAFE program, an 18 per cent increase year on year.

What are some possible solutions?

Experts suggest that, at a minimum, free TAFE places should be extended to private registered training programs in rural areas where TAFE facilities are unavailable. Including non-for-profit industry-run training organisations in the scheme would help to create a level playing field by helping to reduce market distortion in favour of TAFE.

With the construction industry facing severe workforce shortages, there’s no doubt that more needs to be done to encourage students to pursue construction apprenticeships. But whether Free TAFE is the solution is up for debate.

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Article References

Australian Broker News (18 January 2025) ‘Builders urge caution on fee-free TAFE legislation‘, Australian Broker News, accessed 20 January 2025.

Yim, N (19 January 2025) ‘Master Builders add to growing list of opposition to Labor’s free TAFE bill’, The Australian, accessed 20 January 2025.

Yim, N (8 January 2025) ‘BCA opposes legislating fee-free TAFE, marking new split with Albanese government’, The Australian, accessed 20 January 2025.