Canberra, Australia – July 28, 2025 – A staggering revelation from the Skills Minister has ignited widespread concern across Australia's Vocational Education and Training (VET) sector: since January 2023, less than 26% of the 650,000 enrolments in the Free TAFE initiative have been completed to date. This abysmal completion rate, emerging despite an allocation of over $2.5 billion to the program, confirms the sector's worst fears: a significant proportion of Free TAFE enrolments are unlikely to ever result in a completed qualification. These data point to a potential misallocation of substantial taxpayer funds and signal deep systemic issues within current VET delivery models.
The alarming figures underscore a growing divergence between policy intent and actual outcomes, raising critical questions about the effectiveness of the "free" model in addressing Australia's persistent skills shortages. As Phill Bevan, an Advisor in Strategy, Technology, and Capability across corporate, government, and tertiary education, rightly highlights, this concerning trend occurs while workplace training – including apprenticeships, traineeships, and enterprise RTOs – continues its worrying decline. This juxtaposition paints a grim picture for Australia's future workforce capability.
The Costly Reality: Billions Invested, Quarter Returned
The sheer scale of the investment, exceeding $2.5 billion, stands in stark contrast to the meagre 26% completion rate. This translates to an efficiency problem that cannot be ignored. Critics are vocal, with Alec Gardner, an advisor in organisational development, bluntly stating, "This is taxpayers' money squandered yet again."
The core of the debate often circles back to the very nature of "free" education. Dr. Ann Murray, an RTO Compliance Manager, and Marcus Biady, a Training Manager at the Department of Defence, both concisely articulate a common sentiment: "This is what happens when you give things away for free." Biady adds, "When people pay for something, they value it more — and that applies especially to training. The current completion rate highlights what happens when there's no financial stake involved. We should be paying for education, period!" Shaun Roy Merton, an International FE/TVET Expert, suggests a potential solution: a bursary model where fees are covered, but participants are "only truly 'off the hook' for payment once they successfully complete the course. This could be a powerful way to incentivise follow-through and ensure a better return on investment for everyone involved."
Professor Ian Findlay, former President and Vice-Chancellor at the University of Puthisastra, goes further, calling the situation "disgraceful." He advocates for a system where "RTOs (including TAFEs) should not get the funding until completions are >75%." This would fundamentally shift the financial incentive towards successful outcomes rather than mere enrolment numbers.
Unpacking the "Why": Beyond Just "Free"
While the "free" aspect is frequently cited as a major contributor to low completion rates, the issue is undoubtedly more complex. As Kim Porter, a Strategic Leader in Learning & Development, points out from her extensive experience as a TAFE teacher, several underlying factors may be at play:
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Over-assessment in VET Packages: Are current VET packages overly burdensome with assessment requirements, making completion difficult for students juggling other life commitments?
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Relevance to Student Needs and Industry: Do the courses truly meet the needs of students and the evolving demands of the sector?
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Cost of Living Pressures: With rising cost-of-living, many students need to work more, impacting their ability to dedicate sufficient time and energy to their studies. How are support mechanisms adapting to these realities?
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Placement Availability: For courses requiring mandatory placements, is there a sufficient supply of quality placements available to meet student demand?
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Content Development and Instructional Design: Are TAFEs and RTOs truly engaging and empowering learners through their content development and instructional design? Are bespoke training process frameworks in place to support diverse cohorts effectively?
Porter aptly reminds us that "TAFE is an important space for our sectors as it focuses on the application of learning, not just theory." The challenge, then, is not just about funding models, but about optimising the entire learning ecosystem to maximise engagement and completion.
A Deeper Historical Context and Accountability Gap
Phill Bevan, in a scathing critique, highlights a longer history of government "inaction & folly" that has contributed to the current skills crisis. He argues that the current Skills Minister conveniently "bleats about inheriting the worst skills shortages ever, while conveniently ignoring that the 'education Prime Minister' Gillard & Rudd (pre, post) spent multiple terms destroying workplace training & launching the greatest ever VET funding scandal, VET FEE HELP." This suggests that the current challenges are not an overnight occurrence but the culmination of decades of systemic issues.
Yasmin King, a Director and Co-Founder of SkillsAware and CEO of SkillsIQ, questions the persistent lack of accountability: "The money being wasted with this and the 'reviews' and yet another Roundtable… why is there no accountability?" She further suggests that those who can afford the opportunity cost of Free TAFE often require significant pastoral care and support, which they may not be receiving. Geoffrey Mowat, an Adult Vocational Education and Training Professional, counters that while TAFEs provide educational support, "no RTO can provide support to those who don't have the will and drive (motivation and the capacity to act towards a goal)." He attributes this lack of motivation to "years of continual bad experiences," particularly in education, where "students receive the poorest quality/the lowest standards."
James Richards, General Manager in education, notes that 26% is "surprisingly a better completion rate than I expected!" He shares the cynicism regarding accountability, stating, "Highly doubtful we will get any level of accountability from the government here, considering they think 'continuing to rise' is a suitable measure of performance."
The Path Forward: Incentivising Completion and Rebuilding Value
The consensus from various experts points to the urgent need for a shift in strategy. While Free TAFE aims to address skills shortages and provide opportunities, its current implementation appears to be inefficient. Solutions proposed include:
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Performance-Based Funding: Linking funding to actual completions rather than enrolments, as suggested by Professor Findlay.
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"Skin in the Game" Models: Exploring bursary or payment plan models where financial commitment, even if ultimately refunded upon completion, incentivises students to value and complete their courses. This aligns with Simon Michalak’s view that "when something is free, it isn’t generally as appreciated as working for and sacrificing for it."
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Holistic Student Support: Re-evaluating the "pastoral care" debate to ensure that at-risk cohorts receive the specific, tailored support (educational, practical, and motivational) they need to succeed, without compromising personal drive.
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Curriculum and Delivery Review: A comprehensive review of VET packages, assessment load, and instructional design to ensure they are engaging, relevant, and conducive to completion, especially for students facing cost-of-living pressures.
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Strengthening Workplace Training: Simultaneously reinvesting in and promoting apprenticeships, traineeships, and enterprise RTOs, which have a proven track record of directly linking training to employment outcomes.
The current completion rates for the Free TAFE initiative represent a significant challenge for Australia's skills agenda in 2025. With billions invested, the imperative is clear: the focus must shift from simply enabling access to actively incentivising and supporting completion. Without a fundamental re-evaluation of funding models, delivery methods, and accountability measures, Australia risks continuing to pour resources into an initiative that, while well-intentioned, is failing to deliver the "job-ready" graduates the nation so desperately needs.
