Australia’s competency-based training system has long been the foundation of vocational education and training (VET), ensuring that learners acquire the specific skills and knowledge necessary to succeed in the workforce. However, with the recent release of the revised Standards for RTOs, a critical development has sparked widespread debate within the sector: the definition of ‘competency’ has been removed from the glossary.
This omission has raised important questions about the future direction of Australia’s VET system. Is this the beginning of a shift away from competency-based training? Could this be a signal that non-competency-based approaches are on the horizon? For decades, competency-based training (CBT) has been Australia’s preferred approach, but its critics have long argued that it is too rigid, too focused on box-ticking, and often fails to develop well-rounded, adaptable workers. With the changes in the revised Standards, the question now arises: Is this the end of competency-based training as we know it?
The Revised Standards: A Subtle but Significant Shift
To understand the potential implications of the removal of the definition of competency, it is essential to look closely at what has changed. In the current Standards for RTOs, competency is defined as "the consistent application of knowledge and skill to the standard of performance required in the workplace. It embodies the ability to transfer and apply skills and knowledge to new situations and environments." This definition underpins the entire competency-based training system, ensuring that learners are not only assessed on their knowledge but also on their ability to apply that knowledge in practical, real-world settings.
In the revised Standards, however, the word ‘competency’ is notably absent from the glossary. While the concept of a ‘unit of competency’ still remains, its scope appears more limited, focusing primarily on the specific outcomes of individual training units rather than the broader application of skills and knowledge across varying contexts. This subtle change in terminology may seem inconsequential on the surface, but it could mark a significant departure from the fundamental principles that have governed VET for decades.
The Significance of the Definition of Competency
For many years, competency-based training has been heralded as the most effective way to ensure learners are job-ready. The current definition of competency emphasises not just the acquisition of knowledge but the consistent application of skills to workplace standards. Competency-based training ensures that students can transfer their skills across various roles and environments, adapting to different challenges and applying their knowledge in a range of contexts.
This system has traditionally provided a clear benchmark for competency, allowing employers to trust that VET graduates are equipped with the specific skills they need to thrive in the workplace. By removing this definition, the revised Standards could be signalling a shift away from this focus on consistent application and transferability of skills. The potential implications for training providers, learners, and employers are profound.
A Push to Move Beyond Competency-Based Training
For years, some critics of the competency-based system have been lobbying for change. These critics argue that competency-based training often reduces learning to a tick-box exercise, where learners are simply assessed on whether they meet minimum standards rather than developing a deep, well-rounded understanding of their field. They contend that competency-based training can be too focused on compliance and bureaucratic requirements, leading to a fragmented learning experience that does not adequately prepare students for the evolving demands of modern industries.
The removal of the definition of competency may be seen as a concession to this school of thought. By stepping away from rigid definitions, there could be room for a more holistic approach to vocational education—one that emphasises critical thinking, problem-solving, and the development of broader skills that go beyond narrowly defined competencies.
The Arguments for Retaining Competency-Based Training
Despite its critics, competency-based training has been a cornerstone of VET in Australia for good reason. It is grounded in the practical needs of the workforce, ensuring that learners can demonstrate specific, job-relevant skills before they enter the workforce. This practical focus is what has allowed Australia’s VET system to remain closely aligned with industry needs for decades. Employers know that VET graduates have the technical competencies they need to perform well in their jobs, thanks to the clarity of the system.
A competency-based approach is also inherently flexible. The definition of competency includes the ability to transfer and apply knowledge in new situations, making it adaptable to different work environments and emerging industries. Removing this focus could potentially lead to graduates who have knowledge but lack the practical experience or adaptability required to succeed in dynamic workplaces.
Furthermore, competency-based training ensures accountability in the VET system. It provides a clear framework for assessment, where learners are evaluated against objective criteria. Without this, there is a risk that assessments could become more subjective or inconsistent, making it harder to guarantee that students have achieved the necessary level of competence to perform in their chosen fields.
The Risks of Moving Away from Competency-Based Training
The removal of the definition of competency from the revised Standards may signal the beginning of a non-competency-based system. While this may offer more flexibility in some respects, it also introduces several risks.
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Lack of Clarity for Employers
One of the biggest advantages of the competency-based system is that it provides clear benchmarks for what graduates can do. Employers can look at a qualification and understand what skills the graduate has demonstrated. If the system moves away from clearly defined competencies, it may become more difficult for employers to assess whether a candidate has the necessary skills to perform a particular role. This lack of clarity could undermine the credibility of VET qualifications. -
Inconsistency in Training and Assessment
Without a clear definition of competency, there is a risk that training providers could take a more subjective approach to assessment. This could lead to inconsistencies across different RTOs, where learners with the same qualification may have vastly different levels of skill and knowledge. Competency-based training has historically provided a standardised framework for assessment, ensuring that qualifications are portable and recognised across the country. -
A Potential Disconnect Between VET and Industry
The competency-based system has long been praised for its close alignment with industry needs. The removal of the definition of competency could create a disconnect between the VET system and the practical demands of employers. Without a focus on job-specific competencies, there is a risk that graduates may not be adequately prepared to meet the needs of their industry. -
Loss of Flexibility in Application
While some may argue that competency-based training is too rigid, the current definition of competency includes the ability to transfer and apply skills to new situations and environments. This transferability is essential in a workforce where workers are expected to adapt to changing roles and technologies. Moving away from this approach could lead to a more theoretical, knowledge-based system that doesn’t adequately prepare learners for the realities of the modern workplace.
What Might Replace Competency-Based Training?
If Australia is indeed moving away from a competency-based system, what might replace it? There are several possibilities, each with its own benefits and challenges:
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Capability-Based Training
Some proponents of change argue for a capability-based approach. This system would focus more on the broader capabilities and soft skills that are necessary for success in the workplace, such as problem-solving, communication, and adaptability. While this could create more well-rounded graduates, there is a risk that the system may become less focused on practical skills, which are essential for many trades and technical roles. -
Hybrid Models
A hybrid model could emerge that incorporates both competency-based elements and broader capability-based approaches. This would aim to ensure that learners have both the technical skills required by their industry and the broader capabilities needed to succeed in a rapidly changing workplace. However, balancing these two approaches would require careful design to ensure that neither is diluted. -
Outcome-Based Education
Another possibility is a shift toward outcome-based education, where the focus is on what students are able to achieve at the end of their training. This could provide more flexibility in terms of how learners demonstrate their skills and knowledge. However, it may be harder to assess these outcomes in a consistent and standardised way, leading to variability in the quality of graduates.
The Road Ahead: A New Era for VET?
The removal of the definition of competency from the revised Standards raises important questions about the future of competency-based training in Australia’s VET sector. While the system is not disappearing overnight, this change may signal the beginning of a broader shift in philosophy toward a more holistic approach to vocational education—one that focuses less on specific competencies and more on broader skills and capabilities.
However, the risks of moving away from a clear competency framework are significant. The VET system has been successful in large part because of its close alignment with industry and its ability to produce job-ready graduates. If this connection is lost, the VET sector could find itself drifting away from its core mission of providing practical, industry-relevant education.
For now, the removal of the definition of competency should be seen as a wake-up call for the sector. Whether this is truly the end of competency-based training remains to be seen, but it is clear that the vocational education and training (VET) sector is at a crossroads. The removal of the definition of competency from the revised Standards raises significant concerns about the future direction of the system and whether it will continue to meet the evolving needs of industry, learners, and the workforce at large.
Navigating the Future of VET: Will Competency Still Play a Role?
The removal of the formal definition of competency does not necessarily mean the immediate end of competency-based training, but it does signal a potential shift in focus. As the sector grapples with this change, it will need to strike a balance between maintaining the core elements of competency-based education that have served it well, and incorporating more flexibility and broader learning outcomes that could address some of the criticisms that have arisen over the years.
There are several key considerations for how the VET sector can navigate this transition:
1. Maintaining Industry Alignment
Regardless of whether the system remains competency-based, the most critical factor will always be alignment with industry needs. The original strength of the competency-based system was its clear link to workplace standards, ensuring that graduates were equipped with the skills that employers needed. Even if the focus shifts towards broader capabilities or outcome-based education, there must be a robust mechanism to ensure that training reflects current industry practices and that graduates are ready for the demands of the workforce.
2. Protecting the Integrity of Assessments
One of the most significant challenges of moving away from a competency-based framework is the potential impact on assessment integrity. Competency-based assessments offer a standardised way of evaluating whether a learner has achieved the necessary skills. If the definition of competency is removed and replaced with more flexible or broader outcomes, the consistency of assessments could be jeopardised. RTOs will need to ensure that whatever new assessment methods are introduced, they maintain rigour, fairness, and objectivity in evaluating learner performance.
3. Preparing for the Evolving Needs of Learners and Industry
As industries continue to evolve at a rapid pace, so too must the VET sector. The introduction of new technologies, digital skills, and innovative workplace practices means that learners will need more than just technical competency. They will require adaptability, critical thinking, and the ability to apply knowledge in diverse situations. Any shift away from competency-based training must therefore be carefully designed to ensure that learners are developing future-proof skills that go beyond just technical know-how.
The Way Forward: Could a Hybrid System Be the Answer?
While there is uncertainty about the future of competency-based training, it is possible that the VET sector may move towards a hybrid model that combines the best aspects of competency-based training with broader capability and outcome-based approaches. This hybrid system would allow for the development of technical skills, transferrable capabilities, and broader problem-solving abilities, all within a more flexible framework.
Such a model could retain the rigour of competency assessments while also addressing the criticisms of rigid compliance and tick-box assessments that some argue limit the effectiveness of the current system. A hybrid system could also accommodate the need for personalisation in learning, allowing students to develop competencies in ways that are relevant to their specific career paths or industry needs.
For this hybrid model to work, however, there must be clear guidelines for how to assess both competencies and broader outcomes. The unit of competency framework could still provide the foundation for technical skill development, while additional components could be introduced to evaluate more general employability skills, such as communication, teamwork, and innovation.
Addressing the Critics: Can VET Move Forward Without Losing Its Core?
Critics of competency-based training have long argued that the system is too focused on checklists and that it fails to prepare learners for the complex realities of the workplace. However, it is important to remember that technical skills are not the enemy of broader capabilities. In fact, the two are complementary.
Any shift away from competency-based training must not throw the baby out with the bathwater. It is essential that VET continues to focus on producing graduates who are job-ready and who can demonstrate real-world skills. But at the same time, it is equally important to recognise that learners need more than just technical knowledge to succeed in a fast-changing workforce.
By maintaining a focus on competency while also expanding the system to include broader capabilities, the VET sector can meet the needs of learners, employers, and the economy in a more holistic way.
The Role of Stakeholders: Collaboration Is Key
The future of VET is not something that can be determined by any one stakeholder. The collaboration of industry, government, RTOs, and educators will be essential in shaping the next phase of vocational education. If the sector is moving toward a new model, all stakeholders must have a voice in defining the standards, designing assessments, and ensuring that quality and consistency are maintained.
Industry stakeholders will be critical in providing feedback on how training systems can better prepare graduates for real-world roles. Government agencies, including regulatory bodies like ASQA, will need to play a leading role in ensuring that any changes do not compromise the integrity or national recognition of VET qualifications. RTOs must adapt their training and assessment strategies to align with the changing standards while maintaining excellence in delivery.
Finally, learners themselves should be considered in this transition. Their needs and expectations have evolved, and they require a VET system that not only helps them gain employment but also equips them for long-term career success.
The removal of the definition of ‘competency’ from the revised Standards may signal the beginning of a new era for Australia’s VET system, but it is not necessarily the end of competency-based training. Rather, it is a pivotal moment where the sector must carefully reflect on the strengths and limitations of the current system and decide how best to move forward.
The future may lie in a blended model that combines the rigour and clarity of competency-based assessments with a greater focus on broader skills and outcomes that better prepare learners for a changing world. This would ensure that graduates not only have the technical competencies required by industry but are also equipped with the adaptability and problem-solving skills needed to thrive in a dynamic workforce.
Whether this is the end of competency-based training or the beginning of a new hybrid approach, one thing is clear: the VET sector must continue to evolve to remain relevant and effective in preparing job-ready graduates. By fostering collaboration, maintaining quality, and ensuring alignment with industry needs, Australia’s VET system can continue to be a global leader in vocational education.
