Labor’s budget to include $1bn university, TAFE skills and training investment

Labor is planning to spend an extra $1 billion on education and skills. Here’s what’s in the budget for the Class of 2022 – and those looking to retrain.

An extra 20,000 university places for teachers, nurses and engineers, and 180,000 free TAFE positions in skill shortage areas will be created through a $1bn federal government investment, as the budget downgrades forecasts for Australia’s economic growth.

Treasurer Jim Chalmers will hand down his first budget on Tuesday, delivering on Labor’s key federal election commitments in areas like skills and training, childcare and health, as well as highlighting significant economic “headwinds” amid a cost-of-living crunch.

Due to high inflation, rising interest rates and “global challenges,” the budget will show real Gross Domestic Product Growth in Australia has been downgraded by 0.25 per cent to 3.25 per cent for 2022-23, and cut one per cent in 2023-24 to just 1.5 per cent.

Mr Chalmers said Australians were aware the economy was facing problems.

“While we have plenty of things going for us, Australians have not been immune from rampant global inflation, heightened uncertainty and cost of living pressures here at home,” he said.

Treasurer Jim Chalmers will unveil his first budget on Tuesday. Picture: AAP Image/Mick Tsikas

“These headwinds will inevitably impact our growth outlook, and Australians are already feeling the pinch from higher prices and rising interest rates.”

Mr Chalmers said the “best defence” against the economic challenges was a “responsible budget,” which he has described as also being “family friendly” with measures like cheaper medicines, childcare and skills investment.

An extra 180,000 vocational education places, the first of 450,000 promised by Labor at the election, will be available from 2023 through a $550m 12-month National Skills Agreement with the states and territories.

An additional $485.8m has also been included in Tuesday’s federal budget over four years for the university places, which will be for students starting degrees next year and in 2024.

About $176m will go to creating 5935 university places in NSW, $120m for Victoria to create 4283 places, $48m for 1645 extra places in South Australia, $80m for 2811 places in Queensland, and $29m for 831 spots in the Northern Territory.

The skills and training investment includes a commitment to provide access to priority cohorts, including women, Indigenous Australians and people living with a disability.

Students Jasmine Darwin and Roxanne Loughland have welcomed additional university places in Labor’. Picture: Daily Telegraph / Monique Harmer

Education Minister Jason Clare said the additional university places would be allocated to students under-represented in tertiary studies, including people from outside major cities and regional centres.

“This means more teachers, nurses and engineers and it means more Australians from poor families and rural and remote Australia doing these jobs,” he said.

“That’s life-changing.”

Charles Darwin University, the University of Wollongong, Curtin University, Edith Cowan University and University of Newcastle are the top institutions among the 42 higher education providers allocated additional bachelor and sub-bachelor courses in areas of skills need.

Nationally the funding covers 4036 places in education, of which 1469 will be for early education teachers, 2600 places in nursing, 2275 in IT, 2740 in health professions such as pharmacy and health science and 1738 in engineering.

The spending in fee-free TAFE will also target skills in short supply, with the initial 180,000 training places beginning in 2023 to include courses in aged care, early education, health and disability care, as well as technology, hospitality and tourism, construction and agriculture.

Courses delivering skills to increase Australia’s sovereign capability in areas like manufacturing and Defence will also be prioritised.

Skills and Training Minister Brendan O’Connor said the government was “wasting no time” to address the skills shortage Australia faced.

“These fee-free training places will provide Australians opportunities to get trained for the jobs in demand now and in the future and deliver to business the skilled workers they need,” he said.