Thousands of vocational students would no longer have to pay expensive upfront fees, and others would be guaranteed a subsidised training place worth up to $7800, in sweeping reforms to the Australian vocational education system to be proposed by the Gillard Government to the States and Territories.
This would mean thousands of Australians would finally be able to afford to get the skills they need to get a job or a promotion and improve their job security.
As a result of reforms the Commonwealth will work to negotiate with the States:
* Any student pursuing a VET Diploma or Advanced Diploma would no longer have to pay upfront fees, instead paying HECS-style fees only when they can afford to - saving them thousands of dollars at the time they need it most.
* Students studying foundation and entry-level courses for technical and service sector careers in areas such as health, business, hospitality, communications, construction, transport and other areas would be guaranteed a government-subsidised training place.
These changes would help people get better jobs; help tackle Australia's skills shortage; take pressure off families struggling to make ends meet; and recognise the increasing importance of higher level skills in Australian vocational education.
Currently, Diploma and Advanced Diploma students need to pay upfront fees of up to $2500 to commence their studies, at a time when they can least afford it.
By removing this cost barrier, students would have more choice about what and where they study, and would be free from the added burden of having to pay their training fees upfront.
Victoria is currently the only State which offers income contingent loans to VET students on a widespread basis, and there has been strong growth in students doing higher level VET qualifications since 2009 - with more than 22,000 students taking up loans.
The Gillard Government will also seek to introduce a guaranteed entitlement for students to gain skills and achieve a qualification by progressing up to Certificate III level.
This reform package would not only open up a significant number of training opportunities for more Australians, but also improve job security and lift national productivity.
So that students and industry can have increased confidence in training effort and outcomes, the Gillard Government will also insist on new quality measures and benchmarks for training providers.
The Government will also launch a national My Skills website mid-2012, an online database to inform students about their training options. It will provide information about training providers and courses, training outcomes, fees and other costs.
The Government's reforms are part of a multibillion dollar skills package, which includes an additional $1.75 billion over five years specifically set aside in the 2011 Budget to reform Australia's training system provided the States and Territories agree to the Gillard Government's ambitious reforms.