Federal and NSW Governments Finalize $560 Million Free TAFE Agreement

The Australian and New South Wales governments have signed a $560 million joint agreement to fund the Free TAFE program in NSW, securing approximately 160,000 fee-free training places over a five-year period starting in 2027.

The agreement was finalized by Federal Minister for Skills and Training Andrew Giles and NSW Minister for Skills, TAFE and Tertiary Education Steve Whan. The arrangement represents the first state-level agreement signed following the passage of the Free TAFE Act through the Australian Parliament, transitioning the initiative from previous time-limited arrangements into a longer-term framework.

According to the governments, the initiative aims to remove financial barriers to vocational education and address workforce shortages. Fee-free places will target qualifications in priority sectors, including housing construction, energy, digital and technology, and essential care services. The program will also place a focus on upskilling demographics that are typically under-represented in the economy.

Federal Minister Andrew Giles stated that the agreement will ensure ongoing access to vocational education and training in high-demand fields such as construction, agriculture, nursing, aged care, cybersecurity, and early childhood education.

NSW Minister Steve Whan noted that the five-year agreement builds on the state's broader vocational commitments, which include a $3.46 billion investment in skills, training, and TAFE aimed at supporting key sectors, including clean energy and housing development.

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