No longer fit for purpose…Productivity Commision comments on final skills report

Freya Lucas

Jan 28, 2021

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Australia’s National Agreement on Skills and Workforce Development (NASWD) is no longer fit for purpose, and a new national skills agreement is needed, the Productivity Commission has found, in its latest report, the final in a series.

Federal Minister for Employment, Skills, Small and Family Business Michaelia Cash said that as a result of the findings, the Government has commenced negotiations with states and territories, to implement what she termed “a more transparent and consistent funding model”.

The findings of the report will be of interest to those who work in the Vocational Education and Training (VET) sector, as well as those with an interest in the skilling and qualifications of those working within the early childhood education and care (ECEC) sector.

“It’s clear the NASWD is overdue for a replacement,” Ms Cash said, “but with a major overhaul we could achieve a better return on public investment. That’s why we are negotiating with state and territory governments on a new National Skills Agreement, following the signing of a heads of agreement for Skills reform by the National Cabinet last year.”

“This agreement has to ensure investment is targeted at areas of skill needs for our economic recovery and into the future.”

Federal Treasurer, Josh Frydenberg, said the VET system “will help the Australian Government’s Economic Recovery Plan to build back from the COVID-19 crisis.”

A record $7 billion of Federal investment into the VET sector will take place in 2020-21, something which Mr Frydenberg said “will secure Australian jobs and keep businesses open.”

To access the final report, as tabled by the Productivity Commission, please see here.

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